MIRA INFORM REPORT

 

 

Report Date :

30.11.2012

 

IDENTIFICATION DETAILS

 

Name :

QATAR PETROCHEMICAL CO QSC (QAPCO)

 

 

Registered Office :

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

 

 

Country :

Qatar

 

 

Financials (as on) :

31.12.2010

 

 

Year of Establishment :

1974

 

 

Com. Reg. No.:

141, Doha

 

 

Legal Form :

Qatari Joint Stock Company

 

 

Line of Business :

Manufacturers of Ethylene and LDPE

 

 

No. of Employees :

910 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Qatar

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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.

 

 

Source : CIA


SUMMARY

 

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


COMPANY NAME

 

QATAR PETROCHEMICAL CO QSC (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

·       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

 

 

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

 

     Name                                                                                       Percentage Held

·       Qatofin                                                                                             63.0%

·       Qatar Vinyl Company (QVC)                                                              31.9%

·       Qatar Plastic Products Company (QPPC)                                           33.3%

 

 

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 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.

 

 

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

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 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

Indian Rupees

US Dollar

1

Rs.55.20

UK Pound

1

Rs.88.37

Euro

1

Rs.71.47

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.