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Report Date : |
16.01.2013 |
IDENTIFICATION DETAILS
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Name : |
QATAR FERTILISER COMPANY QSCC (QAFCO) |
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Registered Office : |
Mesaieed Industrial Area, Umm Said PO Box 50001 Doha |
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Country : |
Qatar |
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Financials (as on) : |
31.12.2011 |
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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 Shareholders Closed Company |
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Line of Business : |
Production of ammonia and urea. |
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No. of Employees : |
1,200 |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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
|
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.
Source
: CIA
Company Name : QATAR FERTILISER COMPANY QSCC (QAFCO)
Country of Origin : Qatar
Legal Form : Qatari Shareholders Closed Company
Registration Date : 29th September 1969
Commercial Registration Number : 29, Umm Said
Issued Capital : QR 1,000,000,000
Paid up Capital : QR 1,000,000,000
Total Workforce : 1,200
Activities : Production of ammonia and urea.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
QATAR FERTILISER COMPANY QSCC (QAFCO)
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
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 Bida Tower, 2nd
Floor Sales
Office
PO Box:
23111
Doha
Tel:
(974) 44358686
Fax:
(974) 44358484
Email: mktg@qafco.com
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
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
Shareholders Closed Company
Commercial Reg.
No. : 29, Umm Said
Issued Capital : QR 1,000,000,000
Paid up Capital : QR 1,000,000,000
· Industries Qatar
QSC * 75%
West Bay
PO Box: 3212
Doha
Tel: (974)
44491491
· Yara Netherlands BV 25%
The Netherlands
* Industries
Qatar QSC is a subsidiary of Qatar Petroleum (QP)
Name Percentage Held
· Gulf Formaldehyde
Company SAQ 70%
· Qatar Melamine
Company QSCC 60%
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 highlights provided by local sources are given below:
Currency: Qatari Riyals (QR)
Consolidated
Balance Sheet 31/12/11 31/12/10
ASSETS
Non-current assets
Property, plant and equipment 17,244,436,323 13,661,654,167
Projects under development 69,198,190 1,015,203,230
Catalysts 37,536,076 46,012,156
Intangible asset - license 55,523,836 -
17,406,694,425 14,722,869,553
Current assets
Inventories 508,318,645 391,388,789
Accounts receivable and prepayments 932,232,948 778,321,901
Bank balances and cash 1,323,200,026 497,003,830
2,763,751,619 1,666,714,520
TOTAL ASSETS 20,170,446,044
16,389,584,073
EQUITY AND LIABILITIES
Equity
Share capital 1,000,000,000 1,000,000,000
Legal reserve 207,101,224 206,403,954
Cumulative changes in fair values (459,561,157) (307,745,529)
Retained earnings 12,148,864,153 9,242,335,507
Equity attributable to equity holders of the
parent 12,896,404,220 10,140,993,932
Non-controlling interest
526,147,557 18,161,862
Total Equity 13,422,551,777
10,159,155,794
Non-current liabilities
Interest bearing loan 3,540,594,031 3,825,123,070
Other financial liabilities 459,561,157 307,745,529
Employees’ end of service benefits 67,442,594 69,550,362
4,067,597,782 4,202,418,961
Current liabilities
Interest bearing loan 1,374,386,544 1,228,493,146
Accounts payable and accruals 1,154,709,021 690,962,579
Income tax payable 151,200,920 108,553,593
2,680,296,485 2,028,009,318
Total liabilities 6,747,894,267
6,230,428,279
TOTAL EQUITY AND
LIABILITIES 20,170,446,044
16,389,584,073
Consolidated Income Statement
Sales 5,714,815,012 3,880,038,408
Cost of sales (1,647,646,756) (1,438,507,686)
GROSS PROFIT 4,067,168,256
2,441,530,722
Other income 32,095,609 64,221,996
Selling and distribution costs (81,990,292) (64,572,783)
Administrative expenses (608,405,678) (502,294,238)
Foreign currency exchange (loss) gain (10,656,284) 52,015,193
PROFIT FOR THE YEAR
3,398,211,611
1,990,900,890
Local sources consider subject’s financial condition to be Good.
·
Qatar National Bank
PO Box: 50050
Umm Said
Doha
Tel: (974) 44771529
Fax: (974) 44771062
·
Doha Bank Ltd
PO Box: 50111
Umm Said
Doha
Tel: (974) 44771984
Fax: (974) 44770639
·
HSBC Bank Middle East
Abdulla Bin Jassim Street
PO Box: 57
Doha
Tel: (974) 44423124
Fax: (974) 44416353
No complaints regarding subject’s payments have been reported.
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 Qatar among the leading exporters of Ammonia and Urea
in the world, indeed when Qafco-4, a US$ 470 million project - went onstream in
2004 it made Qafco the world's largest producer of urea.
Qafco has been one of the most successful local / foreign industrial
ventures in Qatar. It has recorded substantial profits since 1980. Experts see
this as a result of several factors, including the local cost of feedstock, its
US$ 0.36 million British Thermal Units (BTUs), and the priority given to
maintenance work.
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.54.54 |
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|
1 |
Rs.87.69 |
|
Euro |
1 |
Rs.72.85 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
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.