Frequently asked questions

Frequently asked questions

Please browse our list of frequently asked questions for answers to common queries. If you cannot find the answer to your question here, kindly use the email contact form.

The Company was incorporated with an initial share capital of QR 10 million. QP transferred its shareholding (“transfer shares”) in the joint venture companies to MPHC based on a Share Swap agreement dated August 4, 2013. The consideration for the transfer of shares was the allotment and issuance of shares (“swap shares”) by MPHC to QP. The completion of transfer shares was effective under the agreement upon obtaining the commercial registration certificates evidencing the transfer shares registered in the name of MPHC, and the swap shares in the name of QP which occurred on September 9, 2013. Subsequently, an amendment was made to the Share Swap agreement on January 30, 2014, whereby QP and MPHC agreed the transfer date to be September 1, 2013 (“acquisition date”).

In early 2014, Qatar Petroleum offered 323,187,677 existing ordinary shares of the Company during an initial public offer at an offer price of QR 10.20 per share (including QR 0.20 per share for offering and listing costs). On February 26, 2014, the Company became the 43rd company to be listed on Qatar Exchange. The share offer comprised of 25.725% of the total issued share capital of the Company. The initial public offer was restricted to individual Qatari citizens and certain selected Qatari Institutions only.

Therefore, QP is the major shareholder owning around 74%, with the balance issued capital held by domestic and international investors, high networth individuals and retailers.

The joint ventures of the Company are as follows:

Entity name

Country of incorporation

Relationship

Ownership interest 2015

Qatar Chemical Company Limited (Q-Chem I)

Qatar

Joint venture

49%

Qatar Chemical Company (II) Limited (Q-Chem II)

Qatar

Joint venture

49%

Qatar Vinyl Company Limited (QVC)

Qatar

Joint venture

55.2%

 

  • Qatar Chemical Company Limited (“Q-Chem”), is a Qatari Shareholding Company incorporated in the State of Qatar and is a jointly controlled entity among QP, MPHC and Chevrons Phillips Chemical International Qatar Holdings L.L.C. (“CPCIQH”). Q-Chem is engaged in the production, storage and sale of polyethylene, 1-hexene and other petrochemical products.
  • Qatar Chemical Company II Limited (“Q-Chem II”), is a Qatari Shareholding Company incorporated in the State of Qatar and is a jointly controlled entity among QP, MPHC and CPCIQH. Q-Chem II is engaged in the production, storage and sale of polyethylene, normal alpha olefins, other ethylene derivatives and other petrochemical products. 
  • Qatar Vinyl Company Limited (“QVC”), is a Qatari Shareholding Company incorporated in the State of Qatar and is a jointly controlled entity among QP, MPHC and Qatar Petrochemical Company Limited (“QAPCO”). QVC is engaged in the production and sale of petrochemical products such as caustic soda, ethylene dichloride and vinyl chloride monomer. 

Please refer to section on “Board of Directors” for further details

Group’s petrochemical and chlor-alkali products are exclusively marketed by a wholly owned subsidiary of the State of Qatar, Qatar Chemical and Petrochemical Marketing and Distribution Company Q.J.S.C. (trading as “Muntajat”).

Products are mostly sold in the spot market with few exceptions.

Plant

Product

Launch Year

 Total

Production Capacity

(MPHC Share)

Saleable

(MPHC Share)

Petrochemicals

Q-Chem

 

Polyethylene

 

2003

‘000

453

‘000

222

‘000

222

Q-Chem

1-Hexene

2003

47

23

23

Q-Chem II

Polyethylene

2010

350

172

172

Q-Chem II

Normal

Alpha-Olefins

2010

345

169

169

Chlor-Alkali

QVC

 

Caustic

Soda

 

   2001

 

370

 

204

 

204

QVC

EDC

   2001

180

99

99

QVC

VCM

   2001

355

196

196

Natural gas feedstock is supplied by the parent company under long-term contracts at competitive prices. Ethylene for QVC is supplied by Qapco and by international suppliers.

Qatar Petroleum is conducting a number of detailed feasibility studies in order to take advantage of the ethane feedstock available. These studies are conducted in collaboration with Qapco, Q-Chem and Ras Laffan Olefins Company Limited.  At this point in time, it is too early to speculate on the possibility or nature of projects that may be approved.

The Board of Directors remains open to all strategic growth options, whether organic or inorganic. 

Total headcount within the group is around 1,200 employees  and all companies within the group have targets and goals to increase the number of nationals.

MPHC is targeting to maintain a consistent dividend payout ratio which reflects the performance of the company after taking into consideration all MPHC and MPHC Group Companies capital investments, working capital and financing needs.

There are no such plans at this stage.

The group’s production are on regular (preventive) maintenance in order to ensure product quality is maintained and, ultimately, contribute to extending plants’ production life, improved reliability and decrease environmental impact. The maintenance cycle depends on the age of the plants, the criticality of plant’s operations and the time of maintaining Qatar’s upstream sector.

Q-Chem II and QVC had its major preventive maintenance cycle in the first quarter of 2015, during which their facilities were put on regular periodic shutdowns.

With regards to CAPEX investments over the next five years (2017-2021), the group will continue to focus on optimizing costs through the entire value chain, and improving the efficiency of the operating asset base. As such, there are no major CAPEX planned during these years. Should any major CAPEX plan arise and requiring disclosure, we will appropriately post in on the website and inform Qatar Exchange accordingly.

It should, however be noted that, If profitable investment opportunities are made available to the group within the planning horizon, these opportunities will be considered based on their merits. With the phasing of CAPEX over the next five years, group’s free cash flows and other financial metrics are to improve significantly, assuring greater liquidity and financial strength which will enable the group to have a very flexible financial strategy.

MPHC’s shares are traded in Qatar Stock Exchange (www.qe.com.qa). In order to transact in MPHC’s share, you will have to register with a broker who is registered with Qatar Stock Exchange . The broker will place orders on-behalf of you, and the settlement will be made through the exchange. The broker will charge a commission for their services.

There are number of sources which can be utilized to monitor the performance of your portfolio. These include Qatar Stock Exchange website, android / apple applications for Qatar Stock Exchange and other tailor made software developed by the brokerage houses.

Please refer to the link below for further details: https://www.qe.com.qa/become-an-investor

The group has embarked on a number of initiatives to improve both financial and operational performance through optimizing costs and operations. These initiatives include detailed assessments of the group’s operational assets and the cost base with an objective of improving operational and cost efficiencies while ensuring Health, Safety and Environment are maintained to their highest levels. These initiatives once completed will add new synergies and opportunities within operations, administration, information technology and other functions of the group, and ultimately result in value addition to the shareholders.

The details ruling on Zakat related to share ownership can be found in the Zakat fund (www.zakat.gov.qa)

The details ruling on Zakat related to share ownership can be found in the Zakat fund (www.zakat.gov.qa)

Financial results could be found in the financial performance section of the website. 

Please refer to the “financial performance” section.

The annual reports could be found in the Publications section of the website.

Please refer to the “Publications” section.

The Annual General Assembly Meeting is usually held during the first quarter of the following year. Dates are usually announced in the newspapers.

At the company level, there is no tax liability arising on the profits. Furthermore, the company also gets a refund from PRTD on the public share of tax paid by its group companies. Regarding the personal tax position, you have to refer your queries to the Public Revenue and Tax Department (known as “PRTD”);

Decision regarding the distribution of dividends are made by the Board of Directors. In most cases, dividend distribution comes in the form of cash.

The details of the profits earned in the past years can be found in the financial report section of the website.

Please refer to the “financial performance” section.

Floor no. 42, 
Qatar Petroleum Headquarters,
World Trade Center, West Bay, Doha,
State of Qatar.

Email: mphc@qp.com.qa
Tel.:40132080
Fax: 40139750

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