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MIRA
INFORM REPORT
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Report Date : |
12.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
QATAR
PETROCHEMICAL CO LTD (QAPCO) |
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Registered Office : |
Qapco Building, C
Ring Road, P O Box 756, Doha |
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Country : |
Qatar |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1974 |
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Com. Reg. No.: |
141, Doha |
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Legal Form : |
Qatari Joint Stock Company |
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Line of Business : |
Production of Ethylene, Low Density
Polyethylene (LDPE) and Solid Sulphur. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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Maximum Credit Limit : |
US$ 4,000,000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name : QATAR PETROCHEMICAL CO LTD (QAPCO)
Country of Origin : Qatar
Legal Form :
Qatari Joint Stock Company
Registration Date : 1974
Commercial Registration Number : 141, Doha
Issued Capital : QR
436,000,000
Paid up Capital : QR
436,000,000
Total Workforce : 910
Line of Business : Production
of Ethylene, low density Polyethylene (LDPE) and
solid Sulphur.
Financial Condition : Good
Payments :
Prompt
Operating Trend : Steady
COMPANY NAME
QATAR PETROCHEMICAL
CO LTD (QAPCO)
ADDRESS
Registered & Physical Address
Building : Qapco Building
Street : C Ring Road
PO Box : 756
Town : Doha
Country : Qatar
Telephone : (974) 4242444 / 4321105 / 4323805
Facsimile : (974) 4324700 / 4772674
Email : information@qapco.com.qa
Premises
Subject operates
from a large suite of offices that are owned and located in the Central
Business Area of Doha.
Branch Office (s)
Location Description
·
Industrial
City Owned
production plant
PO Box : 50155
Mesaieed
Tel : (974) 4777111
Fax : (974) 4771346 / 4770459
KEY PRINCIPALS
·
H.E. Abdullah
Bin Hamad Al Attiyah * Chairman
·
Hamad Rashid
Al Mohannadi Managing
Director & General Manager
·
Rashid Ali Al
Mohannadi Director
·
Ahmed Mohamed
Ahmed Darwish Director
·
Sultan Khalifa
Al Banali Director
·
Mohamed Jasem
Al Baker Director
·
Francis Raatz Director
·
Dr Mohamed
Yousef Al Mulla General
Manager
· Abdullah
Al Musallam Finance
Manager
· Mansour
Rashid Al Wadaani Administration
Manager
· Pfeiffer
Jean Claude Jacques Technical
Manager
·
Abdulrahman Ali Al Abdullah Marketing
Manager
· Mohamed
Jassim Al Naama Public
Relations Manager
· Saleh
Mohamed Al Halki Production
Manager
·
Mohamed Al
Mulla Maintenance
Manager
·
Nabil
Rahmattula IT
Manager
· Fahd Zaimal Human
Resources Manager
* H.E. Abdullah Bin Hamad Al
Attiyah is the Minister of Energy, Industry, Electricity & Water.
LEGAL FORM & OWNERS
Date of Establishment : 1974 (under
Emiri Decree 109) Production began in 1981.
History : Subject was originally incorporated in 194
as a Qatari Joint Stock Company
between the following shareholders :
1. Qatar General Petroleum Corp (QGPC) 84 %
2. Elf Atochem SA 16 %
In September 1990, and as part of the
programme to double production
capacity, a new shareholder was
introduced, namely Enichem SpA of Italy, who
shared a 20% stake in the
company with France’s Elf Atochem SA.
During 2002, Enichem SpA of
Italy sold its stake in the company to France’s
Atochem SA.
Legal Form :
Qatari Joint Stock Company
Commercial Reg. No. : 141, Doha
Issued Capital : QR 436,000,000
Paid up Capital : QR 436,000,000
Name of Shareholder (s) Percentage
·
Industries
Qatar 80
%
Al Sadd Plaza
West Bay
PO Box : 3212
Doha
Tel : (974) 4491491
Fax : (974) 4831125
·
Total
Petrochemicals (Formerly Atochem SA) 20
%
4, Cours Michelet, La Defense 10, Cedex 42
Paris 92091
France
Tel : (33-1) 49008080
Fax : (33-1) 49008386
LINE OF BUSINESS
Operations : The main products of the company are Ethylene and LDPE. Solid sulphur is generated as a by-product in the process. The required feedstock, Ethane gas, is supplied by the state-owned Qatar Petroleum (QP) for the production of Ethylene, a significant part of which is then used in the production of various grades of LDPE, marketed under the ‘LOTRENE’ brand name
Subject’s manufacturing facilities consist of an Ethylene plant with a designed annual capacity of 525,000 MT, two LDPE plants with a total annual capacity of 360,000 MT and a Sulphur plant with an annual rated capacity of 70,000 MT
Import Countries
: The United States of
America and Europe.
Export Countries :
QAPCO distributes its products in competitive markets in 35 different
countries, through a network of distributors supplying over 4000 customers
world-wide. Its main markets are South East Asia.
Brand Names : LOTRENE
Operating Trend
: Steady
Subject has a
workforce of approximately 910 employees.
FINANCIAL HIGHLIGHTS
Financial
highlights provided by outside sources are given below:
Currency: Qatari
Riyals (QR)
Consolidated
Income Statement 31/12/05 31/12/06
Sales 1,991,301,912 2,177,214,275
Cost of goods sold (575,740,160) (615,339,676)
Gross Profit 1,415,561,752 1,561,874,599
Other income 32,520,622 69,368,533
Gain (loss) on
foreign exchange (58,182,762) 40,267,187
Selling expenses (64,848,523) (72,588,963)
Administration
expenses (85,497,942) (104,548,707)
Interest income 45,308,707 74,281,396
Share of results of
associates 58,075,877 19,899,929
Profit before
income tax 1,342,937,731 1,588,553,974
Income tax expense
(449,176,419) (550,277,206)
Profit 893,761,312 1,038,276,768
Consolidated
Balance Sheet 31/12/05 31/12/06
ASSETS
Non current
assets
Property, plant and
equipment 683,692,541 887,677,438
Projects under
development 156,304,305 551,774,228
Investments in
associates 307,277,404 332,053,994
Intangible assets 89,634,174 89,634,174
Deferred finance
costs 33,303,814 -
Advances to
suppliers - 18,108,865
Interest rate
swaps - 3,650,964
Total non current assets 1,270,212,238 1,882,899,663
Current assets
Inventories 248,443,637 273,179,012
Accounts receivable
& prepayments 529,095,421 708,178,715
Bank balances and
cash 2,004,262,919 2,226,425,236
Total current assets 2,781,801,977 3,207,782,963
TOTAL ASSETS 4,052,014,215 5,090,682,626
EQUITY AND LIABILITIES
Equity
Legal reserve 87,200,000 87,200,000
Cumulative changes
in fair values (7,624,180)
1,903,445
Retained earnings 2,079,004,304 2,251,814,033
Proposed dividend 550,823,581 865,467,039
Total Equity 3,145,403,705 3,642,384,517
Non-current
liabilities
Employees’ end of
service benefits 31,203,167 37,552,981
Long term
syndicated loans 27,797,952 362,324,844
Total non-current liabilities 59,001,119 399,877,825
Accounts payable
and accruals 398,432,972 498,143,078
Provision for
income tax payable 449,176,419 550,277,206
Total current liabilities 847,609,391 1,048,420,284
Total liabilities 906,610,510 1,448,298,109
TOTAL EQUITY AND LIABILITIES 4,052,014,215 5,090,682,626
Local sources
consider subject’s financial condition to be Good.
BANKERS
·
Commercial
Bank of Qatar Ltd (QSC)
PO Box : 3232
Doha
Tel : (974) 4490222
Fax : (974) 4438182
·
Qatar National
Bank
Government House Road
PO Box : 1002
Doha
Tel : (974) 4413511 / 4407407
Fax : (974) 415020
·
Banque Paribas
PO Box : 2636
Doha
Tel : (974) 4430346 / 4430344
Fax : (974) 4430121
·
Arab Bank
PO Box : 172
Doha
Tel : (974) 4437979 / 4422814
Fax : (974) 4410774
·
Standard
Chartered Bank
Abdullah Bin Jassim Road
PO Box: 29
Doha
Tel: (974) 4414252
Fax: (974) 4413739
PAYMENT HISTORY
Subject’s payment
record is reported to be met in a generally prompt manner.
Date of transaction August 2001 August 2006
Credit amount 13,000 7,000
Amount overdue 0 0
Payment terms 30
days 30
days
Payment Method Letters
of Credit Letters
of Credit
Paying record Prompt Prompt
Currency US
Dollars Pounds
Sterling
GENERAL COMMENTS
Qatar Petrochemical
Co Ltd (QAPCO) was established in 1974 and is engaged in the production of
ethylene, low density Polyethylene (LDPE) and solid sulphur.
The company is 80 %
owned by Industries Qatar, which in turn is wholly owned by the government of
Qatar. The company has the full support of its main shareholder, and as such is
deemed reliable for respecting its financial trade commitments.
Maximum suggested
credit figure: US$ 4,000,000
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)