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Report Date : |
10.11.2012 |
IDENTIFICATION DETAILS
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Name : |
QATAR PETROCHEMICAL CO QSC (QAPCO) |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Year of Establishment : |
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 : |
Manufacturers of Ethylene and LDPE |
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No. of Employees : |
910 employees |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
qatar - ECONOMIC OVERVIEW
Qatar has prospered in the last several years with continued high real GDP growth in 2011. Qatari authorities throughout the financial crisis sought to protect the local banking sector with direct investments into domestic banks. GDP rebounded in 2010 largely due to the increase in oil prices and 2011's growth was supported by Qatar's investment in expanding its gas sector. Economic policy is focused on developing Qatar's nonassociated natural gas reserves and increasing private and foreign investment in non-energy sectors, but oil and gas still account for more than 50% of GDP, roughly 85% of export earnings, and 70% of government revenues. Oil and gas likely have made Qatar the second highest per-capita income country - behind Liechtenstein - and the country with the lowest unemployment. Proved oil reserves in excess of 25 billion barrels should enable continued output at current levels for 57 years. Qatar's proved reserves of natural gas exceed 25 trillion cubic meters, more than 13% of the world total and third largest in the world. Qatar's successful 2022 world cup bid will likely accelerate large-scale infrastructure projects such as Qatar's metro system and the Qatar-Bahrain causeway.
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Source : CIA |
Company Name : QATAR PETROCHEMICAL CO QSC (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
QATAR PETROCHEMICAL CO QSC (QAPCO)
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
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
·
Brian
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
· Saleh Al Halaki Projects Manager
· Mohamed
Jassim Al Naama Public
Relations Manager
· Saleh
Mohamed Al Halaki Production
Manager
· Marc P Van der Auwera Operations
Manager
· Mohamed Al Mulla Maintenance Manager
·
Nabil
Rahmattula IT
Manager
· Fahd Zaimal Human
Resources Manager
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
Name Percentage Held
·
Qatofin 63.0%
·
Qatar
Vinyl Company (QVC) 31.9%
·
Qatar
Plastic Products Company (QPPC) 33.3%
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
highlights provided by local sources are given below:
Currency: Qatari
Riyals (QR 000’s)
Income
Statement 31/12/10 31/12/09
Revenue 4,569,964
2,955,426
Cost of goods
sold (1,372,874)
(876,162)
Gross profit 3,197,090 2,079,264
Other income 88,719
103,467
Selling expenses (141,244)
(96,682)
Administration
expenses (209,468)
(227,567)
Gain on foreign
exchange 456
6,513
Results from
operating activities 2,935,553 1,864,995
Finance charges (76,693)
(9,660)
Finance income 42,502
106,950
Profit before
income tax 2,901,362 1,962,285
Income tax (683,539)
(524,391)
Deferred tax (48,703)
(7,455)
Profit for the year 2,169,120 1,430,439
Other
comprehensive income:
Net movement in
fair value of interest rate swap (15,658)
52,193
Other
comprehensive (loss)/ income for the year (15,658) 52,193
Comprehensive income for the year 2,153,462 1,482,632
Balance Sheet
Assets
Non-current
assets
Property, plant
and equipment 6,000,462 5,238,379
Intangible assets
160,196
162,750
Other non-current
assets 2,650
3,240
Total non-
current assets 6,163,308 5,404,369
Current assets
Inventories 365,180
278,539
Due from related
parties 486,643 351,904
Accounts receivable
and prepayments 813,250
479,872
Cash and cash
equivalents 1,728,439
2,236,032
Total current
assets 3,393,512 3,346,347
Total assets 9,556,820 8,750,716
Equity And
Liabilities
Equity
Share capital 436,000
436,000
Legal reserve 160,772
126,583
Cumulative
changes in fair values (90,543)
(74,885)
Retained earnings
4,504,372
4,863,826
Total equity 5,010,601 5,351,524
Non-current
liabilities
Employees’ end of
service benefits 75,305
71,653
Non- current
portion of long term loan 2,244,381
1,887,271
Non- current
portion of interest rate swap 57,211 40,932
Deferred tax
liability 102,547
53,844
Total non-
current liabilities 2,479,444 2,053,700
Current
liabilities
Due to related
parties 515,611
279,340
Current portion
of long term loans 356,394
109,687
Accounts payable
and accruals 477,899
398,121
Income tax
payable 683,539
524,391
Current portion
of interest rate swap 33,332
33,953
Total current
liabilities 2,066,775 1,345,492
Total liabilities
4,546,219 3,399,192
Total equity and liabilities 9,556,820 8,750,716
Please note that
figures for the year ending 31st December 2011 were not available.
Local sources
consider subject’s financial condition to be Good.
·
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
No complaints regarding
subject’s payments have been reported.
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
Qatar Petrochemical
Co QSC (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
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Indian Rupees |
|
US Dollar |
1 |
Rs.54.34 |
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UK Pound |
1 |
Rs.86.97 |
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Euro |
1 |
Rs.69.43 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.