Background

The Qatari petrochemical industry is presently on the threshold of unprecedented growth . The significant increase in petrochemical experts from Qatar has resulted in the petrochemical sector playing a very active role in the Qatari economy. In line with the industrialization development, Qatar Petrochemical Company Q.S.C. (QAPCO) was established with the aim of utilizing the associated and non-associated ethane gas from petroleum production. QAPCO is currently one of the leading producers of ethylene and variable grade low-density polyethylene (LDPE) in the Middle East, Far East, Africa and the Indian sub-continent. Petrochemicals trading conditions in year 2006 were dominated by continuing high and volatile feedstock prices. The sharp increase in oil prices, along with numerous unscheduled cracker shutdowns mainly in Europe and Asia, led to a state of extremely tight supply and acute demand for ethylene and its derivatives.

Financial & Operational Review

The overall performance has been excellent at financial and operational fronts, delivering very positive results in accordance with sales revenues and net profit. Sales turnover reached the amount of QR2.2B, an increase by 10%, compared to year 2005. In terms of profitability, net profit reported at the amount of QR1.6B, a 19% rise over the year 2005. QAPCO achieved the highest ever production of Ethylene with a figure of over 547KT and LDPE with a figure of over 423KT.