MIRA INFORM REPORT

           

 

 

Report Date :

17.05.2013

 

IDENTIFICATION DETAILS

 

Name :

QATAR STEEL COMPANY LTD (QASCO)

 

 

Registered Office :

Mesaieed Industrial City, Street No. 149, Umm Al Said Area, PO Box 50090, Doha

 

 

Country :

Qatar

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

14.10.1974

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Operators of a steel mill.

 

 

No. of Employees :

32

 

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 :

Regular

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. Throughout the financial crisis Qatari authorities sought to protect the local banking sector with direct investments into domestic banks. GDP had 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. GDP slowed to 6.3% in 2012 as Qatar's gas sector expansion moved toward completion. 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 have made Qatar the world's highest per-capita income country 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, light rail system, and the Qatar-Bahrain causeway. The Hamad International Airport is projected to open by the end of 2013 with an annual passenger capacity of 24 million.

 

Source : CIA

 


SUMMARY

 

Company Name                                    : QATAR STEEL COMPANY LTD (QASCO)

Country of Origin                                   : Qatar

Legal Form                                           : Limited Liability Company

Registration Date                                  : 14th October 1974

Commercial Registration Number           : 32

Issued Capital                                       : QR 300,000,000

Paid up Capital                                     : QR 300,000,000

Total Workforce                                     : 1,650

Activities                                               : Operators of a steel mill.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Satish Chandra Yarmali, Assistant Finance Manager

 


COMPANY NAME

 

QATAR STEEL COMPANY LTD (QASCO)

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : Mesaieed Industrial City

Street               : Street No. 149

Area                 : Umm Al Said Area

PO Box            : 50090

Town                : Doha

Country             : Qatar

 

Telephone         : (974) 44778778 / 44778036 / 44778213

Facsimile          : (974) 44771424 / 44771888

Email                : commercial@qatarsteel.com.qa / satish_c@qatarsteel.com

 

Premises

 

Subject operates from a large suite of offices, production plant and warehousing facilities that are owned and located in the Industrial Area of Doha.

 

Branch Office (s)

 

Location                                                                                               Description

 

PO Box: 689                                                                                         Owned Sales Office

Doha

Tel: (974) 44770011

Fax: (974) 44771405

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Yousuf Hussain Kamal                                                              Chairman

 

Dr Mohammed Saleh Al Sada                                                    Vice Chairman

 

Sheikh Nasser Bin Hamad Al Thani                                             Managing Director

 

Abdel Rahman Ahmed Al Shaibi                                                 Director

 

Fahad Hamad Al Mohannadi                                                      Director

 

Dr Nasser Mubarak Shafi Al Shafi                                              Director

 

Mohamed Hitmi Ahmed Al Hitmi                                                 Director

 

Ali Bin Hassan Al Muraikhi                                                          General Manager

 

Ali Sherif Al Emadi                                                                    Facility Manager

 

Saad Rashid Al Mohannadi                                                        Purchasing Manager

 

Salah Ibrahim Bakar Al Kharja                                                     Finance Manager

 

Satish Chandra Yarmali                                                              Assistant Finance Manager

 

Ahmed Al Ansari                                                                       Sales Manager

 

Hussein Hassan Murrar                                                              Business Development Manager

 

Malek Hamdieh                                                                          IT Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 14th October 1974 (Production commenced in 1978)

 

History : Subject was originally established in 1974 between the following partners:

 

              1. Government of Qatar                       70%

              2. Kobe Steel                                      20%

              3. Tokyo Boeki                                    10%

 

The production plant was inaugurated on 16th July 1978 and was managed primarily by Kobe Steel. However in January 1989 the Qatari government took over management responsibility for the plant.

 

On 24th May 1997 a decree was issued by Amir Sheikh Hamad Bin Khalifa Al Thani, formalising the Qatari government buy-out of the 2   Japanese shareholders, with the Finance Economy & Trade Ministry taking over the 30 percent stake, making the subject a 100 percent state owned entity.

 

In 2004 the Qatari government sold all the shares in QASCO to Industries of Qatar which also holds 75% of the shares in Qatar Fertiliser Co (QAFCO), 50% of Qatar Fuel Additives Co (QAFAC) and 80% of Qatar Petrochemical Co (QAPCO).

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.   : 32

 

Issued Capital              : QR 300,000,000

 

Paid up Capital            : QR 300,000,000

 

Name of Shareholder (s)                                           Percentage

 

Industries of Qatar                                                         100%

 

 

AFFILIATED COMPANIES

 

Qatar Steel Company FZE

PO Box: 18255

Jebel Ali Free Zone

Dubai

United Arab Emirates

Tel: (971-4) 8053111

Fax: (971-4) 8053222

 

South Steel Company

Saudi Arabia

 

United Steel Co (USCO)

Bahrain

 

Gulf Industrial Investment Co (GIIC)

Bahrain

 

Foulath

Bahrain

 

Foulath

Saudi Arabia

 

 

OPERATIONS

 

Activities: Qatar Steel Company Ltd (Qasco) operates a steel mill. The plant consists primarily of four units: Direct Reduction, Electric Arc Furnace, Continuous Casting, and a Rolling Mill. Other auxiliaries include the  Material Receiving/Handling, Main Power Substation, Quality Control Centre, Maintenance Shops, and other facilities such as sea/fresh water, compressed air, natural gas and a clinic.

 

The plant with its offices, occupies an area of 707,000 square metres - adjacent is a further area of       375,000 square metres reserved for future development and expansion.

 

During 2001 the company obtained the ISO 9002 certificate.

 

 In January 2005 QASCO signed an agreement with Brazilian firm Samarco Mineracao for the supply of 2       million tons of Iron Ore Pellets between 2005 and 2010. This additional requirement of Iron Ore Pellets is to meet the demand of QASCO’s capacity expansion from 700,000 tons per year of Direct Reduced Iron  (DRI) to 1.5 million tons per year.

 

On 28th February 2005 QASCO signed an agreement with Kobe Steel Japan to build a new Direct

Reduction Plant which can annually produce 1.5 million tons of iron.

 

On 8th of March 2011 Mr Ali Bin Hassan Al Muraikhi Director and General Manager of Qatar Steel and Mr       Norbert Petermaier, Senior vice president of Siemens VAI signed a contract for  1.1 million tons/ year Steel Making Plant.


The plant will have Siemens VAI’s Ultra High Power 110 Tons Electric Arc Furnace, 110 T Ladle Furnace and 6 strand High Speed Billet Caster coupled with Sophisticated Fume Extraction System for zero emissions.

 

Import Countries: Europe, the United States of America and Japan.

 

Export Countries : Mainly GCC region, but also Hong Kong, Algeria, Iran and Yemen.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,650 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Qatari Riyals (QR)

 

                                                Year Ending 31/12/12:

 

Total Sales                                QR 6,154,187,000

 

Net Profit                                  QR 1,401,976,000         

 

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

 

Subject’s consolidated total revenue, including its affiliated companies for the year ending 31/12/12 was QR 6,819,764,000 and consolidated net profit was QR 1,519,759,000.

 

 

BANKERS

 

Qatar National Bank

Government House Road

PO Box: 1002

Doha

Tel: (974) 44413511 / 44407407

Fax: (974) 44415020

 

Qatar Islamic Bank

Al Khaleej Insurance Building

Grand Hamad Avenue

PO Box: 559

Doha

Tel: (974) 44409409

Fax: (974) 44412700

 

Doha Bank Ltd

Al Jasrah Street

PO Box: 3818

Doha

Tel: (974) 44435444

Fax: (974) 44416631 / 44410625

 

Banque Paribas

Rayyan Road

PO Box: 2636

Doha

Tel: (974) 44430346 / 44430344

Fax: (974) 44430121

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                    April 1999                                 March 2005

Credit amount                           450,000                                     104,000

Amount overdue                        0                                              0

Payment terms                          90 days                                    30 days

Payment Method                       Letters of Credit                        Letters of Credit

Paying record                           No Complaints                          No Complaints 

Currency                                   Pounds Sterling                        Pounds Sterling

 

 

GENERAL COMMENTS

 

On its inauguration in 1974, Qatar Steel Company became the first integrated steel plant in the whole Arabian Gulf.

 

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.54.77

UK Pound

1

Rs.83.31

Euro

1

Rs.70.46

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.