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.

  • What is the current shareholding structure of the company?

    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.

  • What are the portfolio companies within the group and what are the major segments in which the group operates?

    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. 
  • Can you please provide the details of the Board of Directors?

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

  • How are MPHC’s products marketed? Are the products sold on “spot” contracts or “long-term” contracts?

    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.

  • What are the key products produced and sold by the group? Can you please list down the production capacities and saleable volumes?

    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

  • Who supplies the necessary feedstock and other raw materials?

    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.

  • Does the group have any future expansion plans?

    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.

  • Are there any plans to grow through mergers and / or acquisitions?

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

  • Are there any plans to add further companies to MPHC or divest of any businesses?

    There are no such plans at this stage.

  • What are the Qatarisation levels within the group?

    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.

  • What is MPHC’s Dividend Policy?

    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.

  • Will you consider paying interim dividends?

    There are no such plans at this stage.

  • How frequent do you maintain your plants? What are the risks associated with your maintenance program?

    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.

  • What is MPHC’s CAPEX Program over the next five years?

    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.

  • How can I buy MPHC shares?

    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

  • What is MPHC doing in the current market downturn to ensure it maximizes shareholder interest?

    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.

  • What is the Zakat payable on the owned shares?

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

  • What is the dividend Purification ratio?

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

  • Where can I find the latest financial results?

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

    Please refer to the “financial performance” section.

  • Where can I obtain MPHC’s annual report?

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

    Please refer to the “Publications” section.

  • When the General Assembly Meeting is usually held?

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

  • Are there any taxes on profits?

    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”);

  • Does the Company give cash dividends or bonus shares?

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

  • What was the profit proportion during previous years?

    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.

  • Where is the headquarters of MPHC?

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

  • What are the contact details of MPHC?

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