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canada goose In accordance with our methodology for rating GREs, the rating also factors in our opinion that there is an high likelihood that the Qatari government would provide timely and sufficient canada goose coats extraordinary support to Industries Qatar in the event of financial distress. Industries Qatar and QP have a common Canada Goose Outlet board and directors and share key administrative functions. The chairman and managing director of both QP and Industries Qatar is currently Qatar Minister of Energy and Industry. In our view, despite no formal guarantee being in place, a default by Industries Qatar would have a serious canada goose factory sale reputational risk for the Qatari government. We expect the government would seek to prevent such a scenario from unfolding by providing timely and sufficient extraordinary support to Industries Qatar.
canada goose black friday sale important role, which reflects the company canada goose uk black friday public policy role in economic diversification and Canada Goose Jackets wealth distribution in the Qatari economy. In our view, Industries Qatar 2003 IPO was designed to further the government goal of distributing wealth and increasing financial sophistication among the Qatari population, rather than due to any financial need. We estimate canada goose coats on sale that cheap canada goose uk around 10% https://www.canadagooseoutlet4sale.com of Qatari citizens remain shareholders, while the transfer of 19% of Industries Qatar shares to the GRSI, effective April 2012, is also in line with this public policy mandate. At the same time, we view Industries Qatar subsidiary and joint venture companies as providing some diversification to the Qatari economy.
Canada Goose Parka Our view of Industries Qatar business risk profile is supported primarily by the company excellent profitability, which stems from its access to competitively priced gas feedstock $2.04 per million Btu in 2011 supplied by QP. We consider canada goose store the company diversification by product and end market, its economies of Canada Goose Coats On Sale scale thanks to shared resources, and its strong joint venture partners, as further rating Canada Goose Online strengths. The ratings are constrained, however, by the price induced volatility of profits, as well as the cyclicality of Industries Qatar petrochemicals and steel production business canada goose black friday sale units, and concentration of production sites in Qatar.
Canada Goose online Industries Qatar financial risk profile is underpinned by the company low financial leverage and projected strong free operating cash flow generation at its petrochemical and canadian goose jacket fertilizer joint ventures. The company significant historical capital expenditure and generous, progressive dividend policy somewhat offset the above strengths.
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Canada Goose sale The group EBITDA for the 12 months ended June 30, 2012, was in line with our canada goose clearance base case scenario, reaching Qatari riyal (QAR) 8.9 billion ($2.44 billion). This was mainly attributable to a uk canada goose supportive industry supply/demand balance and high oil prices, resulting in strong prices and margins for chemicals, polymers, and fertilizers.
Canada Goose Outlet We expect a significant increase in low density polyethylene (LDPE), ammonia, and urea capacities, which despite the softer commodity prices will likely result in somewhat higher revenue in 2012. We believe the company profitability will uk canada goose outlet also likely remain very strong relative to peers outside the Middle East, thanks to access to cheap canada goose uk shop feedstock.
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buy canada goose jacket cheap The reduction in prospective capital expenditure following the reassessment of the Qatar Steel (QS) phase 2 and 3 projects is Canada Goose Parka likely to result in continued strong cash flow generation and cheap Canada Goose metrics in 2012. Industries Qatar credit metrics buy canada goose jacket exceeded our guidelines for the rating canada goose clearance sale in 2011, given the very strong pricing environment, and this is likely to be repeated in 2012. Under a mid cycle pricing scenario, we anticipate that Industries Qatar will likely maintain ratios of funds from operations (FFO) to debt of over 45% and debt to EBITDA below 2.0x (compared with 115% and 0.8x, respectively, for the 12 months ended June 30, 2012), which are consistent with an SACP ofWe assess Industries Qatar liquidity to be We estimate a sources to uses ratio buy canada goose jacket cheap of at least 1.2x under our mid cycle pricing scenario. We also jacket view positively the company close relationship with its majority shareholder QP in our liquidity analysis.
canada goose clearance sale Industries Qatar had the following main liquidity sources on June 30, 2012:
Consolidated cash balances of QAR5.8 billion, of which we treat QAR1 billion as tied to operations and thus not available for debt reduction; and
canada goose clearance FFO for 2012 that we estimate at more than QAR7.0 billion (for the six months until June 30, 2012, FFO was QAR4.5 billion). Uses of liquidity over the coming 12 months comprise:
canada goose coats Short term debt obligations of QAR1.9 billion on June 30, 2012;
Capital expenditures Canada Goose sale of around QAR2 billion by our estimates;
buy canada goose jacket Moderate working capital outflow due to a ramp up in new fertilizer and polymer capacity; and
cheap Canada Goose However, we could consider downgrading Industries Qatar if Canada Goose online we see evidence of a material reduction in the government shareholding, a weakening of the company public policy role, or if we were to lower the ratings on the State of Qatar. As a result we could lower our assessment of the likelihood of government extraordinary support to and lower the rating to
Canada Goose Jackets Given our assessment of an high likelihood of government support, all other things being equal, we would not lower the rating on Industries Qatar unless we lowered our SACP to below This is unlikely to happen in the near term given the company current business risk profile and financial risk profile. Still, we might envisage revising the SACP in the case of a canada goose uk outlet prolonged and substantial drop in chemical, fertilizer, and steel prices and/or a large increase in gas feedstock prices.