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MIRA INFORM REPORT
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Report Date : |
08.12.2011 |
IDENTIFICATION DETAILS
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Name : |
QATAR FERTILISER COMPANY SAQ (QAFCO) |
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Registered Office : |
Mesaieed Industrial
Area, Umm Said, P O Box 50001,Doha |
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Country : |
Qatar |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
29.09.1969 |
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Com. Reg. No.: |
29, Umm Said |
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Legal Form : |
Qatari Joint Stock Company |
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Line of Business : |
Production of ammonia and urea |
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No. of Employees
: |
1200 Persons |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
US$ 10,000,000 |
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Status : |
Good |
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Payment
Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Qatar |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
SUMMARY
Company Name : QATAR FERTILISER COMPANY SAQ (QAFCO)
Country of Origin : Qatar
Legal Form : Qatari Joint Stock Company
Registration Date : 29th September 1969
Commercial Registration Number : 29, Umm Said
Issued Capital : QR 250,000,000
Paid up Capital : QR 250,000,000
Total Workforce : 1,200
Activities : Production of ammonia and urea.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Recommended Credit Limit : US$ 10,000,000
COMPANY NAMe
QATAR FERTILISER COMPANY SAQ (QAFCO)
company ADDRESS
Registered &
Physical Address
Location : Mesaieed Industrial Area, Umm Said
PO Box : 50001
Town : Doha
Country : Qatar
Telephone : (974) 44228888 / 44779779 / 44770252
/ 44227777
Facsimile : (974) 44770347 / 44770374 / 44477944
Email : admin@qafco.com
Premises
Subject operates
from a large suite of offices and manufacturing facilities that are owned and
located in the Industrial Area of Doha.
Branch Office (s)
Location Description
·
Al
PO Box: 23111
Tel: (974) 44358686
Fax: (974) 44358484
Email: mktg@qafco.com
KEY PRINCIPALS
Name Position
·
Abdullah
Hussain Salatt Chairman
·
Faisal
Mohamed Al Suwaidi Vice
Chairman
·
Khalifa
Abdulla Al Suwaidi Managing
Director
·
Abdul
Aziz Ahmed Al Malki Director
·
Jassim
Mohamed Nama Director
·
Meshaal
Mohamed Abdulla Al Mahmoud Director
·
Thorlief
Enger Director
·
Edward
Cavazuti Director
·
Ali M
Mubarak Finance
Manager
·
G
Hegerland Production
Manager
·
Ali Al
Ghareeb Marketing
Manager
·
Arne
Hellenes Chief
Accountant
·
Salman
Al Kuwari Personnel
Manager
·
Hakam
Gran Maintenance
Manager
LEGAL FORM & OWNERS
Date of Establishment : 29th
September 1969
History : Qafco was incorporated in 1969 as a joint
venture between Qatar General Petroleum Corp and a number of leading
multinational companies, in order to utilize Qatar's abundant gas resources for
producing ammonia and urea fertilizer. The manufacturing plant was built
at Umm Said with an initial capital of QR 57 million which was later raised to
QR 92 million. The shares were held by the following concerns :
1. Qatar General Petroleum Corp 70 %
2. Norsk Hydro AS 25 %
3. Power Gas Corp
3 %
4. Hambros Bank
2 %
In
1990, Power Gas Corp and Hambros Bank withdrew from the company after assigning all their shares to Qatar General
Petroleum Corp. Subsequently the capital was increased to QR 100 million and
the company was re-organised under its current structure. Qatar General
Petroleum Corp has since transferred its
stake in the subject to its subsidiary, Industries Qatar, whilst Norsk Hydro AS
has transferred its shares to Yara Netherlands BV and Fertiliser Holdings AS.
During 2010, Fertiliser Holdings ASA transferred its stake in the
subject to Yara Netherlands BV
Legal Form :
Qatari Joint Stock Company
Commercial Reg. No. : 29, Umm Said
Issued Capital : QR 250,000,000
Paid up Capital : QR 250,000,000
Name of Shareholder
(s) Percentage
·
Industries
PO Box: 3212
Tel: (974) 44491491
·
Yara Netherlands BV 25%
The Netherlands
* Industries Qatar is a subsidiary of Qatar Petroleum (QP)
OPERATIONS
Activities: Engaged in the production of ammonia and urea, Qafco operates four plants – Qafco I, Qafco II, Qafco III, and Qafco IV, which began production in 1972, 1979, 1997, and 2004 respectively.
QAFCO inaugurated its first plant in 1973 with a design capacity of 900 tonnes of Ammonia and 1000 Tonnes of Urea daily. Through the years, QAFCO plants have been extensively developed and they are regularly modified and modernized to be compatible with the latest technology in order to ensure continuous supply of high quality products. Presently the QAFCO complex comprises three completely integrated trains and each train comprises two units, one for production of Ammonia and the other for Urea.
Subject was awarded the ISO9002 certificate on 29th May 1996 and the ISO14001 on the 30th December 1997.
In September 2004, Qafco signed a deal with Jordan Phosphate Mines Company (JPMC), under which it will supply 130,000 tonnes of ammonia to the Jordanian firm.
On 3rd February 2005, Qafco signed an a letter of intent (LOI) that paves the way for phase-5 growth at what has become one of the world’s largest fertilizer plants.
On 26th April 2008,
HH Sheikh Tamim Bin Hamad Bin Khalifa Al-Thani, the Heir Apparent, laid the
foundation stone for the QAFCO-V project. The project will raise the Company’s
annual ammonia output to 3.8 million MT and its urea production to 4.3 million
MT per annum, thus making QAFCO the world’s largest single site producer of
ammonia. The QAFCO-6 project which is expected to be taken over by QAFCO
in 2012 will increase the Company's annual production capacity of urea to 5.6
million MT.
Production
Capacity : QAFCO I Ammonia
– 368,203 metric tonnes
Urea – 423,209 metric tonnes
QAFCO II Ammonia – 434,665 metric tonnes
Urea – 511,515 metric tonnes
QAFCO III Ammonia – 637,398 metric tonnes
Urea – 830,034 metric tonnes
QAFCO IV Ammonia – 742,286 metric tonnes
Urea – 1,231,380 metric tonnes
Import
Countries: The United
States of America, Norway and Germany.
Export Countries: Subject’s main markets are in South and East Asia, although the company now exports to over 35 countries around the world, including India (53% of ammonia sales), Australia (33% of ammonia sales), Argentina, Bangladesh, Burundi, Canada, China, Egypt, Eritrea, Ethiopia, Greece, Indonesia, Iran, Italy, Japan, Jordan, Kenya, Korea, La Reunion, Malaysia, Mexico, Mozambique, Myanmar, Nepal, Oman, Pakistan, Philippines, Qatar, Singapore, Sri Lanka, South Africa, Sudan, Taiwan, Tanzania, Thailand, Turkey, UAE, Uruguay, USA, Vietnam, Yemen, Zambia, and Zimbabwe.
Operating Trend: Steady
Subject has a
workforce of approximately 1,200 employees.
FINANCIAL DATA
Financial
highlights provided by local sources are given below:
Currency: Qatari
Riyals (QR)
Consolidated Balance Sheet 31/12/09 31/12/10
ASSETS
Non-current
assets
Property, plant
and equipment 9,949,112,643 13,661,654,167
Project under
development 990,968,858 1,015,203,230
Catalysts 41,557,884 46,012,156
10,981,639,385 14,722,869,553
Current assets
Inventories 331,500,709 391,388,789
Accounts
receivable and prepayments 564,898,452 778,321,901
Other financial
assets 3,035,827 -
Bank balances and
cash 1,907,800,697 497,003,830
2,807,235,685 1,666,714,520
TOTAL ASSETS 13,788,875,070 16,389,584,073
EQUITY AND
LIABILITIES
Equity
attributable to equity holders of the parent
Share capital 1,000,000,000 1,000,000,000
Legal reserve 205,354,707 206,403,954
Cumulative
changes in fair values (128,196,557) (307,745,529)
Retained earnings
8,255,631,605 9,372,252,014
9,332,789,755 10,270,910,439
Minority interest
17,114,121 18,161,862
Total equity 9,349,903,876 10,289,072,301
Non-current
liabilities
Term loan 3,594,067,629 3,825,123,070
Other financial
liability 129,977,389 307,745,529
Employees’ end of
service benefits 69,789,957 69,550,362
3,793,834,975 4,202,418,961
Current
liabilities
Interest bearing
loan - 1,228,493,146
Accounts payable
and accruals 575,574,309 561,046,072
Other financial
liability 1,254,994 -
Income tax
payable 68,306,916 108,553,593
645,136,219 1,898,092,811
Total liabilities
4,438,971,194 6,100,511,772
TOTAL EQUITY AND LIABILITIES 13,788,875,070 16,389,584,073
Consolidated
Income Statement
Sales -net 3,306,600,136 3,880,038,408
Cost of sales (1,549,770,292) (1,438,507,686)
GROSS PROFIT 1,756,829,844 2,441,530,722
Other income 214,376,793 116,237,189
Selling and
distribution costs (55,118,244) (64,572,783)
Administrative
expenses (220,056,143) (372,377,731)
PROFIT FOR THE
YEAR 1,696,032,250 2,120,817,397
Attributable to:
Equity holders of
the parent 1,692,742,786 2,117,669,656
Minority interest
3,289,464 3,147,741
PROFIT FOR THE YEAR 1,696,032,250 2,120,817,397
Local sources
consider subject’s financial condition to be Good.
BANKERS
·
Qatar
National Bank
PO Box: 50050
Umm Said
Tel: (974) 44771529
Fax: (974) 44771062
·
Doha
Bank Ltd
Umm Said
PO Box: 50111
Tel: (974) 44771984
Fax: (974) 44770639
·
HSBC
Bank
PO Box: 57
Tel: (974) 44423124
Fax: (974) 44416353
PAYMENT HISTORY
No complaints
regarding subject’s payments have been reported.
GENERAL COMMENTS
Qafco is the only
fertilizer producer in Qatar and specialises in the production of Ammonia and
Urea. It is the largest single fertilizer producer in the Middle East and puts
Qafco has been one
of the most successful local / foreign industrial ventures in
During the course
of this investigation nothing detrimental was uncovered regarding subject’s
operating history or the manner in which payments are fulfilled. As such the
company is considered to be a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.45 |
|
UK Pound |
1 |
Rs.80.38 |
|
Euro |
1 |
Rs.69.12 |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.