1. Overview

Brief History

QAFCO was established pursuant to Special Decree No. 44 of 1969 and was incorporated in 1975 in a Joint Venture Agreement between the Government of the State of Qatar and two foreign shareholders. In the same year, the Government transferred its shares in QAFCO to Qatar Petroleum (QP).

In 2003 under a second reorganisation, QP transferred its shares to IQ.

Ownership

At present, QAFCO is owned by IQ [75%], Fertilizer Holdings A.S. [10%] and Yara Netherland B.V. [15%].

Related Companies

QAFCO has a 70% interest in Gulf Formaldehyde Company.

2. Recent Performance: (Full Share)

Balance Sheet

Profit & Loss Account

[Figures are full share of the company]

3. Main Products:

Ammonia

The main uses of ammonia are in the production of fertilizers, explosives and polymers. It can also be used as an ingredient in certain household glass cleaners, as a refrigerant and can used as disinfectant when added to drinking water (with chlorine).

Urea

Also known as carbamide, it can be produced as prills, granules, flakes, pellets, crystals and solutions. More than 90% of world production is destined for use as a fertilizer.

It can also be used:

-As an alternative to rock salt in the deicing of roadways and runways. It does not promote metal corrosion to the extent that salt does.

-As an additive ingredient in cigarettes, designed to enhance flavour.

-As an ingredient in some hair conditioners, facial cleansers, bath oils and lotions.

-It is also used as a reactant in some ready-to-use cold compresses for first-aid use, due to the endothermic reaction it creates when mixed with water.

-Used, along with salts, as a cloud seeding agent to expedite the condensation of water in clouds, producing precipitation.

Urea-Formaldehyde

A transparent thermosetting resin or plastic, made from urea and formaldehyde heated in the presence of a mild base such as ammonia or pyridine. These resins are used in adhesives, finishes and molded objects.

4. Markets:

Ammonia is largely sold in India and Jordan, urea in the US, Southeast Asia and Australia, and the excess formaldehyde produced by its joint venture, Gulf Formaldehyde Company, in neighboring countries.