MIRA INFORM REPORT

 

 

Report Date :

21.05.2008

 

IDENTIFICATION DETAILS

 

Name :

QATAR CHEMICAL COMPANY LTD (Q-CHEM)

 

 

Registered Office :

Salam Tower, 1st Floor, West Bay, P O Box 24646, Doha

 

 

Country :

Qatar

 

 

Date of Incorporation :

06.10. 1998

 

 

Com. Reg. No.:

21119, Doha

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Operates an integrated petrochemical plant producing high density polyethylene (HDPE), metallocene linear low density polyethylene (LDPE) and hexene-1 (alpha olefin) and other associated by-products using the most up-to-date technology.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

US$ 1,000,000

 

 

Status :

Very Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

SUMMARY

 

Company Name                         : QATAR CHEMICAL COMPANY LTD (Q-CHEM)

Country of Origin                                    : Qatar

Legal Form                                            : Limited Liability Company

Registration Date                                   : 6th October 1998

Commercial Registration Number            : 21119, Doha

Issued Capital                                        : QR 500,000,000

Paid up Capital                                      : QR 500,000,000

Total Workforce                         : 500

Line of Business                                    : Production of petrochemicals.

Financial Condition                                 : Undetermined

Payments                                             : Nothing detrimental uncovered

 

 

 

COMPANY NAME

 

QATAR CHEMICAL COMPANY LTD (Q-CHEM)

 

 

ADDRESS

 

Registered & Physical Address

 

Building : Salam Tower, 1st Floor

Area                 : West Bay

PO Box             : 24646

Town                 : Doha

Country : Qatar

Telephone         : (974) 4847111 / 4858296

Facsimile          : (974) 4847171 / 4837379 / 4858262

Email                : info@qchem.com.qa

 

 

Premises

 

Subject operates from a large suite of offices that are rented and located in the Central Business Area of Doha.

 

 

Branch Office (s)

 

     Location                                                                               Description

 

·       Mesaieed Industrial City                                                         Owned petrochemical plant

     Qatar

 

 

KEY PRINCIPALS

 

·       Don Lycette                                                                          General Manager

 

·       Ahmed I Al Emadi                                                                 Assistant General Manager

 

·       Stan Moore                                                                           Finance Manager

 

·       Steven Jackson                                                                     Purchasing Manager

 

·       Mohammed Ali                                                                      Personnel Manager

 

·       Ms Lemia Zahran                                                                  Administrative Officer

 

 

 

 

 

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 6th October 1998

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.  : 21119, Doha

 

Issued Capital              : QR 500,000,000

 

Paid up Capital                           : QR 500,000,000

 

 

Name of Shareholder (s)         Percentage

 

·       Qatar Petroleum Corporation (QP)                                                      51%

     Al Sadd Plaza

     West Bay

     PO Box: 3212 / 47 / 70

     Doha

     Qatar

     Tel: (974) 4491491

     Fax: (974) 4831125 / 4402020

 

·       Chevron Phillips Chemical Company                                                   49%

10001 Six Pines Drive

PO Box: 4910

The Woodlands

Texas TX  77387-4910

United States of America

Tel: (1-832) 8134100

 

 

AFFILIATED COMPANIES

 

Subject is partly owned by Qatar Petroleum Corporation (QP) who has interests in the following concerns:

 

     Name                                                                       Country             QP Stake

 

·       National Oil (Nodco)                                                  Qatar                   100.00 %

·       Qatar Petrochemicals Company                                 Qatar                     80.00 %

·       Qatar Fertiliser Company (Qafco)                                Qatar                   100.00 %

·       Qatar Liquefied Gas Company Ltd (Qatargas)  Qatar                     65.00 %

·       Arab Shipbuilding and Repair Yard Co             Bahrain                  18.80 %

·       Arab Maritime Petroleum Transport Co (Amptc)           Kuwait                   13.60 %

·       Arab Petroleum Investments Corp (Apicorp)                 Saudi Arabia           10.00 %

·       Arab Petroleum Services Co (APSC)                           Libya                     10.00 %

·       Arab Petroleum Pipeline Co (Sumed)                          Egypt                       5.00 %

·       Arab Engineered Systems and Control (AESC)            UAE                      11.40 %

·       Qatar Europe LNG Company Ltd                                    -                      100.00 %

·       Ras Laffan LNG Company Ltd                                    Qatar                     70.00 %

·       Qatar Fuel Additives Company (Qafac)                        Qatar                     50.00 %

·       Qatar Clean Energy Company (Qacenco)                    Qatar                     50.00 %

·       Qatar Water & Electricity Company (QWEC)               Qatar                     10.00 %

·       Qatar Shipping Company (QSC)                                 Qatar                     10.00 %

·       Qatar Plastic Production Company                             Qatar                     26.60 %

 

 

LINE OF BUSINESS

 

Operations : Subject operates an integrated petrochemical plant producing high density polyethylene (HDPE), metallocene linear low density polyethylene (LDPE) and hexene-1 (alpha olefin) and other associated by-products using the most up-to-date technology.

 

Commercial operations began in late 2002. On 9 June 2003, Q-Chem celebrated the occasion of its first shipment of polyethylene by containership. To date, the company has shipped products to more than 40 countries in film and blow moulding application

 

Annual Production Capacity:   Ethylene                                               500,000 tonnes

                                    High density polyethylene (HDPE)           453,000 tonnes

                                    1-Hexene                                                47,000 tonnes

 

Import Countries : United States of America, Europe and the Far East.

 

Subject has a workforce of approximately 500 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Companies registered in Qatar are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

·       HSBC Bank Middle East

Abdullah Bin Jassim Street

PO Box : 57

Doha

Tel : (974) 4423124

Fax : (974) 4416353

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

 

 

 

 

 

 

 

 

GENERAL COMMENTS

 

Qatar Chemical Company Ltd (Q-Chem) was registered in 1998 and began commercial operations in late 2002. The company operates an integrated petrochemical plant producing high density polyethylene (HDPE), metallocene linear low density polyethylene (LDPE) and hexene-1 (alpha olefin).

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled.

 

Q-Chem is owned by the well known and financial strong Qatar Petroleum Corporation (QP) and Chevron Phillips Chemical Company of the US. As such we are of the opinion that the subject would not enter into financial transactions it could not see its way clear to fulfil.

 

Maximum suggested credit figure: US$ 1,000,000

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions