MIRA INFORM REPORT

 

 

Report Date :           

17.09.2011

 

IDENTIFICATION DETAILS

 

Name :

QATAR PETROCHEMICAL CO LTD (QAPCO)

 

 

Registered Office :

Qapco Building, C Ring Road, P O Box 756, Doha

 

 

Country :

Qatar

 

 

Financials (as on) :

31.12.2009

 

 

Year of Establishment :

1974

 

 

Com. Reg. No.:

141, Doha

 

 

Legal Form :

Qatari Joint Stock Company

 

 

Line of Business :

Manufacturers of Ethylene and LDPE

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

US$ 4,000,000

Status :

Good

Payment Behaviour :

No Complaints

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 – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

Qatar

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 Bottom of Form

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

Activities                                               : Manufacturers of Ethylene and LDPE.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Recommended Credit Limit                     : US$ 4,000,000

 

COMPANY NAME

 

QATAR PETROCHEMICAL CO LTD (QAPCO)

 

 

company ADDRESS

 

Registered & Physical Address

Building             : Qapco Building

Street               : C Ring Road

PO Box             : 756

Town                 : Doha

Country             : Qatar

Telephone         : (974) 44242444 / 44321105 / 44323805

Facsimile          : (974) 44324700 / 44772674

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) 44777111

     Fax: (974) 44771346 / 44770459

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Hamad Rashid Al Mohannadi                                                 Chairman

 

·       Dr Mohamed Yousef Al Mulla                                                 Vice Chairman

 

·       Rashid Ali Al Mohannadi                                                                    Director

 

·       Ahmed Mohamed Ahmed Darwish                                                      Director

 

·       Sultan Khalifa Al Banali                                                                     Director

 

·       Mohamed Jasem Al Baker                                                                 Director

 

·       Graeme Burnett                                                                                Director

 

·       Ahmad Al Mawlawi                                                                            Director

 

·       Bryan Canfield                                                                                  Director

 

·       J A Jayadewa Jayakody                                                                     Finance Manager

 

·       Rashid Abdulla S Al Sulaiti                                                                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

 

·       Marc P Van der Auwera                                                                     Operations Manager

 

·       Mohamed Al Mulla                                                                            Maintenance Manager

 

·       Nabil Rahmattula                                                                               IT Manager

 

·       Fahd Zaimal                                                                                      Human Resources Manager

 

 

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) 44491491

Fax: (974) 44831125

 

·       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

 

 

AFFILIATED COMPANIES

 

·       Qatar Vinyl Company (QVC)

·       Qatar Plastic Products Company (QPPC)

·       Qatofin

·       Ras Laffan Olefins Company Ltd

 

 

OPERATIONS

 

Activities: 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: 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 DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Qatari Riyals (QR)

 

Consolidated Income Statement            31/12/07                         31/12/08                    31/12/09

 

Sales                                                    2,691,486,271                3,726,909,279             2,705,113,024

 

Cost of goods sold                                 (612,126,037)                 (872,275,190)           (765,796,345)

 

Gross Profit                                           2,079,360,234                2,854,634,089             1,939,316,679

 

Other income                                         47,245,131                        61,881,200             110,673,457

Selling expenses                                      (79,797,616)                  (99,301,694)            (86,833,978)

Administration expenses                        (135,860,224)               (166,881,525)            (203,221,612

Interest income                                          82,824,412                    94,366,842             101,735,335

Share of results of associates                     54,515,273                  100,639,180             90,284,357

 

Profit for the year                                   2,071,136,093                2,767,536,581             1,954,826,894

 

Consolidated Balance Sheet                   31/12/07                        31/12/08                    31/12/09

 

ASSETS

Non current assets

Property, plant and equipment                 1,218,924,665                1,363,774,619             2,103,268,757

Projects under development                    1,475,130,967                2,174,740,492            2,616,500,778

Investments in associates                         388,316,786                   488,955,966            474,735,923

Intangible assets                                      90,390,904                       89,634,174            119,748,622

Advances to suppliers                            1,902,001                                         -             1,409,345

Total non current assets                      3,174,665,323                   4,117,105,251             5,315,663,425

 

Current assets

Inventories                                                248,225,897                  255,421,321            237,056,934

Accounts receivable & prepayments        901,071,797                     889,788,268            769,857,307

Bank balances and cash                        2,227,687,115                3,145,993,164             2,040,338,353

Total current assets                               3,376,985,809                4,291,202,753             3,047,252,594

 

TOTAL ASSETS                                   6,551,651,132                8,408,308,004             8,362,916,019

 

EQUITY AND LIABILITIES

Equity

Share capital                                                                                                                                                     436,000,000                                                                 436,000,000                                            436,000,000

Legal reserve                                         87,200,000                         87,200,000            87,200,000

Cumulative changes in fair values            (28,041,413)                   (127,077,740)          (74,885,047)

Retained earnings                                  2,805,386,226                4,861,915,968             4,903,206,239

Proposed dividend                                  856,319,319                                     -                               -

Total Equity                                           4,156,864,132                5,258,038,228             5,351,521,192

 

Non-current liabilities

Employees’ end of service benefits          57,808,597                        64,417,604            67,396,512

Long term syndicated loans                    962,641,086                  1,459,582,794             1,667,384,265

Interest rate swap                                    28,041,413                     127,077,740            40,933,242

Total non-current liabilities          1,048,491,096                1,651,078,138             1,775,714,019

 

Current liabilities

Due to related parties                             254,737,577                    422,037,673            244,357,750

Accounts payable and accruals               430,313,746                     366,147,126            375,499,192

Income tax payable                                661,244,581                     711,006,839            524,390,529

Current portion of syndicated loans          -                                           -            57,481,532

Current portion of interest rate swap   -                                     -            33,951,805

Total current liabilities                             1,346,295,904                1,499,191,638             1,235,680,808

Total liabilities                                        2,394,787,000                3,150,269,776             3,011,394,827

TOTAL EQUITY AND LIABILITIES           6,551,651,132                8,408,308,004             8,362,916,019

 

Local sources consider subject’s financial condition to be Good.

 

Figures for the year ending 31st December 2010 were not available.

 

 

BANKERS

 

·       Commercial Bank of Qatar Ltd (QSC)

PO Box: 3232

Doha

Tel: (974) 44490222

Fax: (974) 44438182

 

·       HSBC Middle East Bank

PO Box: 57

Doha

Tel: (974) 44382100

Fax: (974) 44416353

Acc No. 001135888063

           

·       Qatar National Bank

Government House Road

PO Box: 1002

Doha

Tel: (974) 44413511 / 44407407

Fax: (974) 44415020

 

·       Banque Paribas

PO Box: 2636

Doha

Tel: (974) 44430346 / 44430344

Fax: (974) 44430121

 

·       Arab Bank

PO Box: 172

Doha

Tel: (974) 44437979 / 44422814

Fax: (974) 44410774

 

·       Standard Chartered Bank

Abdullah Bin Jassim Road

PO Box: 29

Doha

Tel: (974) 44414252

Fax: (974) 44413739

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.47.47

UK Pound

1

Rs.74.96

Euro

1

Rs.65.79

 

 

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

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

----

NB

New Business

----

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.