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Report Date : |
14.08.2014 |
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) : |
31.12.2012 |
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Date of Incorporation : |
1974 |
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Com. Reg. No.: |
141, |
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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 |
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 : |
Regular |
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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 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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. Throughout the financial crisis Qatari authorities sought to protect the local banking sector, with direct investments into domestic banks. GDP is driven largely by changes in oil prices and by investment in the energy 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 50% 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 about 57 years. Qatar's proved reserves of natural gas exceed 25 trillion cubic meters, about 13% of the world total and third largest in the world. Qatar's successful 2022 World Cup bid is accelerating large-scale infrastructure projects such as Qatar's metro system, light rail system, the construction of a new port, roads, stadiums and related sporting infrastructure. The new Hamad International Airport is expected to open in mid-2014 with an annual passenger capacity of 24 million on initial opening and 50 million when complete
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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)
Building : Qapco
Building
Street : C Ring Road
PO Box : 756
Town : Doha
Country : Qatar
Telephone : (974) 44242444
/ 44321105 / 44323805 / 44010160 / 44010000
Facsimile : (974) 44324700
/ 44772674 / 44353961
Email : information@qapco.com.qa
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
· Ahmed Mohamed
Ahmed Darwish Director
· Sultan Khalifa Al
Banali Director
· Ahmad Al Mawlawi Director
· Mohammed Khalid Al
Ghanem Director
· Mubarak Awaida M
Al Hajri Director
· Bryan Canfield Director
· Mrs Bernadette
Spinoy 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
· 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 31/12/11 31/12/12
Sales 4,569,964 6,033,314 6,071,051
Cost of goods sold (1,372,874)
(1,831,997) (1,990,824)
Gross profit 3,197,090 4,201,317 4,080,227
Other income 88,719
103,120 121,643
Selling expenses (141,244)
(160,662) (185,407)
Administration expenses (209,468)
(254,802) (313,149)
Gain on foreign exchange 456
4,457 (1,335)
Results from operating activities 2,935,553 3,893,430 3,701,979
Finance charges (76,693)
(104,002) (98,047)
Finance income 42,502
18,473 25,101
Profit before income tax 2,901,362 3,807,901 3,629,033
Income tax (683,539)
(841,076) (825,689)
Deferred tax (48,703)
- -
Profit for the year 2,169,120 2,966,825 2,803,344
Balance Sheet
Assets
Non-current assets
Property, plant and equipment 6,000,462 6,319,714 6,761,574
Intangible assets 160,196
159,509 153,824
Other non-current assets 2,650
3,136 3,522
Total non- current assets 6,163,308 6,482,359 6,918,920
Current assets
Inventories 365,180
405,804 336,551
Due from related parties 486,643
424,133 582,488
Accounts receivable and prepayments 813,250
1,339,563 1,340,055
Cash and cash equivalents 1,728,439
1,725,503 1,623,518
Total current assets 3,393,512 3,895,003 3,882,612
Total assets 9,556,820 10,377,362 10,801,532
Equity And Liabilities
Equity
Share capital 436,000
436,000 436,000
Legal reserve 160,772
253,233 272,062
Cumulative changes in fair values (90,543)
(97,172) (84,374)
Retained earnings 4,504,372
5,347,232 6,397,028
Total equity 5,010,601 5,939,293 7,020,716
Non-current liabilities
Employees’ end of service benefits 75,305
78,269 87,802
Non- current portion of long term loan 2,244,381
1,988,609 1,014,808
Non- current portion of interest rate swap 57,211 70,637 60,542
Deferred tax liability 102,547
159,678 210,190
Total non- current liabilities 2,479,444 2,297,193 1,373,342
Current liabilities
Due to related parties 515,611
749,293 679,619
Current portion of long term loans 356,394
223,219 910,687
Accounts payable and accruals 477,899
357,884 645,353
Income tax payable 683,539
783,945 147,983
Current portion of interest rate swap 33,332
26,535 23,832
Total current liabilities 2,066,775 2,140,876 2,407,474
Total liabilities 4,546,219 4,438,069 3,780,816
Total equity and liabilities 9,556,820 10,377,362 10,801,532
Please note that figures for the year ending 31st December
2013 are not yet 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.
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
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.25 |
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1 |
Rs.103.02 |
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Euro |
1 |
Rs.81.90 |
INFORMATION DETAILS
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Analysis Done by
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KAR |
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Report Prepared
by : |
NIS |
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.