SUNDAY, FEBRUARY 18, , DOW PTS PRICE PERCENTAGE % Qatar wants to ensure regular

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1 SUNDAY, FEBRUARY 18, 2018 Qatar s handling of crisis worth emulating: Kenyan envoy PAGE 23 Qatar set to launch survey on country s competitiveness TRIBUNE NEWS NETWORK THE Ministry of Development Planning and Statistics (MDPS), in collaboration with Switzerland s Institute for Management Development (IMD), will be carrying out an Executive Opinion Survey in February and March, a press statement said on Saturday. The survey data would provide qualitative analysis about economic policy, regulations and various aspects of the business environment which influence the nation s Qatar is ranked 17th in the 2017 Competitiveness Yearbook competitiveness ranking. The 2018 IMD World Competitiveness Report, scheduled for release in June, will measure strengths and weaknesses of Qatar s economic environment and compare these with other nations, the statement said. Minister for MDPS, HE Dr Saleh al Nabit said, The report will help identify areas where competitiveness could be improved, as well as provide important information for prospective investors and the general public. Qatar is ranked 17th (out of 63 countries) in the 2017 Competitiveness Yearbook. The high ranking stems from the strong macroeconomic performance of the Qatari economy coupled with the ongoing reforms and modernisation of government institutions, the statement added. Exchange rate Currency buy QR sell QR US Euro Pound Sterling Indian Rupee Pakistani Rupee Philippine Peso SriLankan Rupee Bangladeshi Taka Nepalese Rupee Japanese Yen Kuwaiti Dinar Omani Riyal Saudi Riyal UAE Dirham Bahraini Dinar Source: TRIBUNE NEWS NETWORK THE brent oil price has proven to be volatile over the past ten days. After rising to above $70 per barrel in late January, which is 55 percent higher than the recent low of $45 per barrel set in June last year, the brent oil price fell back to around $63 per barrel last week. Despite the recent drop, Qatar National Bank (QNB) in its weekly report has forecast an upward revision for brent crude oil in 2018 to $60-65 per barrel (average) from $55-60 per barrel previously. "Our forecast is based on a combination of a regression model, the oil futures curve, and consensus forecasts," the report said. "Within our regression Qatar, Ireland have huge potential to boost trade Ireland in talks to export beef and sheep to Qatar, says Irish minister Ciaran Cannon SATYENDRA PATHAK IRELAND is in talks with Qatar to export beef and sheep to meet the growing demand for livestock in the country, an Irish minister has said. Ciaran Cannon, Ireland s Minister of State for the Diaspora and International Development at the Department of Foreign Affairs and Trade, told Qatar Tribune that Ireland aims to enter Qatar s food market in a big way with high-quality meat products. We have entered into talks with Qatari authorities to reach an agreement on supplying Irish beef and sheep to Qatari firms. The response from the Qatari side is quite positive, Cannon said. Ireland has also sought Qatari investment in food industries and the agricultural sector of the country. Qatar wants to ensure regular supply of food products in its domestic market. This is the area where Ireland can support Qatar in every possible manner. Our agriculture sector including animal husbandry, is quite developed. We are ready to export our food products to Qatar, the minister said. Ireland is also ready to impart its modern technology to help Qatar in realising its goal of self-sufficiency in the food sector. This is an area where Qatar can benefit a lot from Irish expertise to produce more food products in the country, the minister said. Qatar and Ireland have immense potential to increase bilateral trade that currently stands at 500 million euros and is almost limited to the financial sectors, banking and aviation. The minister said that private companies from both sides can play a vital role in increasing trade volume between the two countries by exploring investment opportunities available in agriculture, education, technology, health and petrochemical sectors of the two countries. Trade ties between the two countries witnessed an upswing after the launch of Qatar Airway s direct flight between Doha and Dublin in June last year, the minister said, adding that talks are on to increase the frequency of the flight to facilitate more business between model we have revised higher our estimate of the average break-even oil price for US shale oil producers from $58 per barrel to $63 per barrel. At the same time, the futures curve and consensus forecasts have both increased," the report noted. The underlying driver of the rally in oil prices in the second half of last year was a rebalancing in the global oil market. The global market, which had been oversupplied by 0.9 million bpd in 2016, switched to being undersupplied by 0.5 million bpd (bpd) in Supply was held back by OPEC s initial production cut to counter increases in US production. Additionally, oil demand was higher than expected on the back of strong global economic growth and as a response to lower prices. Going forward, the QNB report added, it expects the market to change direction again as higher prices bring US shale and other non-opec producers back into the market, offsetting continued strong demand growth. "We expect the market to move from being undersupplied in 2017 to balanced in 2018." The report said non- OPEC production is expected to increase by 1.7 million bpd in 2018, as producers take advantage of higher prices, with total US production (shale and nonshale) contributing 1.35 million bpd of this total. "With oil prices recently rising above the US shale breakeven price, estimated to be $63 per barrel in 2018, US shale producers are likely to have already locked the two countries. The minister said that Ireland expects Qatari investment in its economic sectors in the post-brexit era. into forward prices around this oil price level and have already begun to ramp up production this year. Additionally higher production is expected from Brazil and Canada," the report pointed out. OPEC and its partners are expected to maintain strong compliance with the production freeze agreed last year, which aims to keep With Britain exiting the European Union (EU), the minister said, Ireland will become the gateway to a strong consumer base of 500 million in the European continent. The current scenario offers Qatari investors with ideal investment opportunities in Ireland. Ireland is all set to roll out massive infrastructure projects worth 115 billion next week, he said, adding that Qatari investors can participate in these projects to reap benefits in the long run. Real estate and tourism and technology are other areas where Qatari investors can look for opportunities to invest, the minister said. Cannon said that a number of Irish companies are also looking to enter the Qatari market to work on various developmental projects in the country. Around 70 Irish firms are already working in Qatar, the minister said adding that many more Irish firms with expertise in building big stadiums and organising mega sporting events are looking for opportunities to work on 2022 Fifa World Cup projects. 1.8 million bpd off the market until December Among OPEC producers, production in Venezuela continues to fall due to unplanned outages, but this is expected to be offset by higher production from some OPEC producers that are not bound by the agreement (Libya and Nigeria). Turning to demand, despite recent upward revisions to global GDP growth, including in emerging markets, the International Energy Agency (IEA) projects demand growth to moderate to 1.3 million bpd from 1.7 million bpd in 2017 as higher prices temper consumption. "We believe risks to this oil demand forecast are skewed to the upside as emerging market demand for oil tends to be less price elastic and global growth forecasts continue to be revised up. "The bottom line is that the market price dynamics will depend on OPEC and its major partners ability to sustain a high compliance rate once again in 2018," the report said. According to QNB's internal projections, assuming a repeat of the same level of compliance as 2017, the global oil market should be balanced in 2018 and oil inventories should decline to their five year average by The minister, who met with Qatar Chamber officials during his visit to Doha, praised Qatar s private sector for playing a major role in the economic development of the country. Qatar s private sector has become one of the fastest growing sectors in the region, he said adding that it has giving the Irish side a great opportunity to boost investments ties with Qatar. Qatar Chamber encourages Irish companies to invest in the Qatari market. The Chamber is ready to assist Irish companies in introducing them to the Qatari market, providing them with economic data and informing their members of the opportunities offered by the Irish side, he said, adding that there are huge investment opportunities in the Qatari and Irish markets. Qatar Chamber Vice-Chairman Mohamed bin Ahmed bin Tawar al Kuwari, who led the Qatari side during the meeting, said the Chamber would extend all help to Irish businessmen and investors in entering the Qatari market. Oil prices to average $60-65 a barrel in 2018: QNB report The market is expected to move from being undersupplied in 2017 to balanced in 2018, QNB said in its weekly report 25, DOW PTS 9, QE PTS 34, SENSEX PTS GOLD BRENT PRICE PERCENTAGE % Qatar Chamber Vice Chairman Mohamed bin Ahmed bin Tawar al Kuwari in a meeting with Irish delegation led by Ciaran Cannon in Doha. Qatar wants to ensure regular supply of food products in its domestic market. This is the area where Ireland can support Qatar in every possible manner Our agriculture sector including animal husbandry is quite developed. We are ready to export our food products to Qatar Ciaran Cannon, Ireland s Minister of State for the Diaspora and International Development WTI PRICE PERCENTAGE % SILVER 1, % % the third quarter. "Based on our modelled historical relationship between the supply and demand balance and prices, this results in an average price forecast between $60-65 per barrel in "Looking further out, we expect oil prices to be range bound around the $60 per barrel mark," the report noted. On the one hand, the report said OPEC would have a strong incentive to extend the current production cuts beyond 2018 if prices threaten to break significantly lower due to excess supply. "This would help to rebalance the market and support prices. On the other hand, if prices rise significantly above the US shale break-even price, these producers are likely to respond by increasing US shale production more aggressively thus capping the topside in oil prices," the report added.

2 18 Sunday, February 18, 2018 Notice to Shareholders Mesaieed Petrochemical Holding Company Q.P.S.C - Agenda of the Ordinary Agenda of the Extraordinary General Assembly Meeting General Assembly Meeting their fees. Mr. Ahmad Saif Al Sulaiti Chairman, MPHC - - Notes MPHC Board of Directors Report (2017) Introduction Proposed Dividend Distribution Financial Results Conclusion -

3 Sunday, February 18, Mesaieed Petrochemical Holding Company Q.S.C REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Our opinion What we have audited Basis for opinion Independence - Our audit approach Overview - statements. - - Key audit matters - - Key audit matter How our audit addressed the Key audit matter CLASSIFICATION OF INTERESTS IN JOINT ARRANGEMENTS AS JOINT VENTURES REVENUE RECOGNITION Other information - statements REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS that: - OTHER MATTER Mohamed Elmoataz Doha, State of Qatar 31 December Notes ASSETS Non-current assets Investments in joint ventures 3 13,162,384 13,149,165 Current assets Other receivables 4 12,518 7,656 Tax receivable ,556 89,760 Due from a related party 6-98,098 Deposits and other bank balances 5.1 1,346, ,220 Cash and cash equivalent 5 50, ,639 Total current assets 1,600,027 1,277,373 Total assets 14,762,411 14,426,538 EQUITY AND LIABILITIES EQUITY Share capital 8 12,563,175 12,563,175 Legal reserve 9 37,020 25,364 Retained earnings 1,984,611 1,689,021 Total equity 14,584,806 14,277,560 LIABILITES Current liabilities Trade and other payables 7 169, ,812 Due to a related party 6 7,902 8,166 Total liabilities 177, ,978 Total equity and liabilities 14,762,411 14,426,538 The financial statements on pages 1 to 22 were approved and authorised for issue by the Board of Directors on February 14, 2018 and were signed on its behalf by: Ahmad Saif Al-Sulaiti Chairman Mohamed Salem Al-Marri Vice Chairman For the year ended 31 December Notes Share of results from joint ventures 3 971, ,261 Interest income 30,483 19,779 Other income 1,705 1,118 1,003, ,158 General and administrative expenses (16,423) (17,270) Profit for the year before tax refund 987, ,888 Tax refund ,796 89,760 Net profit for the year 1,088, ,648 Other comprehensive income - - Total comprehensive income for the year 1,088, ,648 Basic and diluted earnings per share (expressed in QR per share) Statement of changes in equity For the year ended 31 December Note Share Capital Legal Reserve Retained Earnings Balance at 1 January ,563,175 25,364 1,598,661 14,187,200 Profit for the year , ,648 Other comprehensive income for the year Total comprehensive income for the year , ,648 Social and sports fund contribution 15 (24,866) (24,866) Transaction with owners in their capacity as owners: Dividends declared - - (879,422) (879,422) Balance at 31 December ,563,175 25,364 1,689,021 14,277,560 Balance at 1 January ,563,175 25,364 1,689,021 14,277,560 Profit for the year - - 1,088,243 1,088,243 Other comprehensive income for the year Total comprehensive income for the year - - 1,088,243 1,088,243 Social and sports fund contribution (27,206) (27,206) Transfers to legal reserves - 11,656 (11,656) - Transaction with owners in their capacity as owners: Dividends declared (753,791) (753,791) Balance at 31 December ,563,175 37,020 1,984,611 14,584,806 For the year ended 31 December Total Notes Cash flows from operating activities Net profit for the year 1,088, ,648 Adjustments for: - Tax refund (100,796) (89,760) - Interest income (30,483) (19,779) - Share of results from joint ventures 3 (971,682) (901,261) (14,718) (16,152) Working capital changes: - Due from a related party 98, Due to a related party (264) Trade and other payables (133) (548) Cash generated from operations 82,983 (15,658) Interest received 25,621 17,605 Tax refund received - 99,368 Social and sports fund contribution (24,866) (27,177) Net cash generated from operating activities 83,738 74,138 Cash flows from investing activities Dividends received from joint ventures 958, ,618 Placement of fixed term deposits (3,150,220) (1,894,817) Maturity of fixed term deposits 2,794,410 1,707,195 Net cash generated from investing activities 602, ,996 Cash flows from financing activities Dividends paid to shareholders (727,107) (854,120) Movement in unclaimed dividends account (26,684) (25,302) Cash used in financing activities (753,791) (879,422) Net decrease in cash and cash equivalents (67,400) (57,288) Cash and cash equivalents at beginning of year 5 117, ,927 Cash and cash equivalents at end of year 5 50, ,639

4 20 Sunday, February 18, 2018 Mesaieed Petrochemical Holding Company Q.S.C 1. CORPORATE INFORMATION AND ACTIVITIES Mesaieed Petrochemical Holding Company Q.S.C. (the Company or MPHC ) is registered and incorporated in Qatar under commercial registration number as a Qatari Shareholding Company by its founding shareholder, Qatar Petroleum ( QP ). The Company was incorporated under the Qatar Commercial Companies Law No. 5 of 2002 (replaced by the new Qatar Commercial Companies Law No. 11 of 2015). The Company was incorporated on 29 May 2013 for an initial period of 99 years, following the decision of H.E. the Minister of Economy and Commerce No. 22 of 2013, issued on 21 May The registered address of the Company is P.O. Box 3212, Doha, State of Qatar. The Company is listed on the Qatar Exchange and is a subsidiary of QP. The principal activity of the Company is to establish, manage, own and/or hold shares, assets and interests in companies (and their subsidiaries and/or associated undertakings) engaged in all manner of processing and/or manufacturing of petrochemical products, together with any other company or undertaking which the Company deems beneficial to its business, diversification or expansion from time to time. The joint ventures of the Company, included in the financial statements are as follows: Entity Name There will be no impact on the Company s accounting for financial liabilities, as the new requirements only affect the accounting for financial liabilities that are designated at fair value through profit or loss and the Company does not have any such liabilities. The derecognition rules have been transferred from IAS 39 Financial Instruments: Recognition and Measurement and have not been changed. The Company does not have any hedge relationships and thus there will be no impact on the Company s financial statements upon the adoption of IFRS 9. The new impairment model requires the recognition of impairment provisions based on expected credit losses rather than only incurred credit losses as is the case under IAS 39. It applies to financial assets classified at amortised cost, debt instruments measured at fair value through other comprehensive income, contract assets under IFRS 15 Revenue from Contracts with Customers, lease receivables, loan commitments and certain financial guarantee contracts. Based on the assessments undertaken to date, the Company does not expect the application of new impairment model to result in a significant change in the current loss allowance for related financials assets. The new standard also introduces expanded disclosure requirements and changes in presentation. These are expected to change the nature and extent of the Company s disclosures about its financial instruments particularly in the year of the adoption of the new standard. Furthermore, the Company does not expect any impact on the financial statements if its joint ventures applied IFRS 9. Date of adoption by Company The standard must be applied for financial years commencing on or after 1 January The Company will apply the new rules retrospectively from 1 January 2018 to the extent of applicability, with the practical expedients permitted under the standard. Comparatives for 2017 will not be restated. IFRS 15 Revenue from Contracts with Customers Nature of change The IASB has issued a new standard for the recognition of revenue. This will replace IAS 18 which covers contracts for goods and services and IAS 11 which covers construction contracts. The new standard is based on the principle that revenue is recognised when control of a good or service transfers to a customer. Impact Country of incorporation Relationship Ownership interest Qatar Chemical Company Limited (Q-Chem) 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. The Company commenced commercial activities on 1 September The financial statements of the Company for the year ended 31 December 2017 were authorised for issue by the Board of Directors on February 14, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of preparation These financial statements have been prepared in accordance with International Financial Reporting standards (IFRS) and interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS. The financial statements comply with IFRS as issued by the International Accounting Standards Board (IASB). The financial statements also comply with the Company Articles of Association and the applicable provisions of Qatar Commercial Companies Law. The financial statements have been prepared on a historical cost basis, and the accounting policies adopted are consistent with those of the previous financial year. The financial statements are prepared in Qatari Riyals ("QR"), which is the Company s functional and presentation currency and all values are rounded to the nearest thousands (QR'000), except otherwise indicated. i. New and amended standards adopted by the Company A number of new or amended standards became applicable for the current reporting year. However, the Company did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards. ii. New standards and interpretations not yet adopted Certain new accounting standards and interpretations have been published that are not mandatory for the current reporting period and have not been early adopted by the Company. The Company s assessment of the impact of these new standards and interpretations are set out below. IFRS 9 Financial Instruments Nature of change IFRS 9 addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules for hedge accounting and a new impairment model for financial assets. Impact The Company has reviewed its financial assets and liabilities and is expecting the following impact from the adoption of the new standard on 1 January 2018: The Company s financial assets compromise of the following: Trade and other receivables (excluding prepayments and advances) Due from related parties Cash and Cash equivalents Trade receivables and Due from related parties are debt instruments currently classified as loans and receivables which are measured at amortised cost under IAS 39. The Company assessed that they meet the conditions for classification at amortised cost (AC) under IFRS 9 since they represent cash flows from solely payments of principal and interest (SPPI) and the Company s business model is to hold and collect these debt instruments. Cash and Cash equivalents definition as per IAS 7 remains unchanged with the application of IFRS 9, short term investments and time deposits will continue to be presented under cash & cash equivalents, being highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. The Standard does not apply to the Company s financial statements as its only stream of revenue is income from investments in joint ventures which falls within the scope of IAS 28-Investments in associates and joint ventures. The Company has assessed the impact on the financial statements if its joint ventures applied IFRS 15 and has identified that the recognition and measurement of revenue for all the joint ventures current ongoing contracts particular with Muntajat for sale of regulated products under IFRS 15 five-step model will not change as currently recognized under IAS 18, except in the case of QVC, where currently the revenue billed to customer is recognised on a gross basis in the income statement and the corresponding charge paid against these revenues is recognised as selling and marketing expenditure. However, IFRS 15 defines transaction price as the expected inflow from transfer of goods and services. In line with aforementioned, management will be recognising revenue on a net basis from the adoption date (1st January 2018) of the standard. However this will have no impact on the Company s financial statements as the Company recognises its share of the joint ventures results using the equity method. The new standard also introduces expanded disclosure requirements and changes in presentation. These are expected to change the nature and extent of the Company s disclosures about its financial instruments particularly in the year of the adoption of the new standard. Date of adoption by the Company Mandatory for financial years commencing on or after 1 January The standard permits either a full retrospective or a modified retrospective approach for the adoption. The Company intends to adopt the standard using the modified retrospective approach which means that the cumulative impact of the adoption will be recognised in retained earnings,if applicable as of 1 January 2018 and that comparatives will not be restated. IFRS 16 Leases Nature of change IFRS 16 was issued in January It will result in almost all leases being recognised on the balance sheet, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The only exceptions are short-term and low-value leases. The accounting for lessors will not significantly change. Impact The standard will affect primarily the accounting for the Company and its joint ventures operating leases. As at the reporting date, the Company s share in its joint ventures has non-cancellable operating lease commitments accumulated to QR 126,057 see note 3 (iv). However, the Company has not yet assessed what other adjustments, if any, are necessary for example because of the change in the definition of the lease term and the different treatment of variable lease payments and of extension and termination options. It is therefore not yet possible to estimate the amount of right-of-use assets and lease liabilities that will have to be recognised on adoption of the new standard and how this may affect the Company s profit or loss and classification of cash flows going forward. Date of adoption by Company Mandatory for financial years commencing on or after 1 January The Company intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption. 2.2 Significant accounting policies Interest in joint venture The results, assets and liabilities of joint ventures are incorporated in these financial statements using the equity method of accounting, except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for in accordance with IFRS 5. Under the equity method, an investment in a joint venture is initially recognised in the statement of financial position at cost and adjusted thereafter to recognise the Company's share of the profit or loss of the joint venture. When the Company's share of losses of a joint venture exceeds the Company's interest in that joint venture (which includes any long-term interests that, in substance, form part of the Company's net investment in the joint venture), Interest in joint venture (continued) the Company discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the joint venture. An investment in a joint venture is accounted for using the equity method from the date on which the investee becomes a joint venture. On acquisition of the investment in a joint venture, any excess of the cost of the investment over the Company's share of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included within the carrying amount of the investment. Any excess of the Company's share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognised immediately in profit or loss in the period in which the investment is acquired. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. The Company discontinues the use of the equity method from the date when the investment ceases to be a joint venture, or when the investment is classified as held for sale. When the Company retains an interest in the former joint venture and the retained interest is a financial asset, the Company measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with IAS 39. The difference between the carrying amount of the joint venture at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the joint venture is included in the determination of the gain or loss on disposal of the joint venture. If a gain or loss previously recognised in other comprehensive income by that joint venture would be reclassified to profit or loss on the disposal of the related assets or liabilities, then the Company also reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when the equity method is discontinued. Unrealized gains and losses resulting from transactions between the Company and the joint venture are eliminated to the extent of the interest in the joint venture. Current versus non-current classification The Company presents assets and liabilities based on current/non-current classification. An asset is current when: It is expected to be realised or intended to sold or consumed in normal operating cycle; It is held primarily for the purpose of trading; It is expected to be realised within twelve months after the reporting period; or It is cash or a cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: It is expected to be settled in normal operating cycle; It is held primarily for the purpose of trading; It is due to be settled within twelve months after the reporting period; or There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Company classifies all other liabilities as non-current. Financial assets All financial assets are recognised and derecognised on trade date where the purchase or sale of a financial as set is under a contract whose terms require delivery of the financial asset within the timeframe established by the market concerned, and are initially measured at fair value, plus transaction costs, except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value. (a) Trade and other receivables Trade and other receivables are carried at original invoiced amount less impairment for non-collectability of these receivables. An allowance for impairment is made when there is objective evidence (such as the probability of insolvency or significant financial difficulties of the debtor) that the Company will not be able to collect all of the amounts due under the original terms of the invoice. The carrying amount of the receivable is reduced through use of an allowance account. Impaired debts are derecognized when they are assessed as uncollectible. (b) Cash and cash equivalents Cash and cash equivalents in the statement of cash flows comprise of bank balances and fixed term deposits with an original maturity of less than three months. (c) Impairment of financial assets Financial assets are assessed for impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. Objective evidence of impairment could include: (i) significant financial difficulty of the issuer or counterparty; or (ii) default or delinquency in interest or principal payments; or (iii) it is becoming probable that the borrower will enter bankruptcy or financial re-organisation; or (iv) the disappearance of an active market for that financial asset because of financial difficulties. (d) Derecognition of financial assets and liabilities A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognised where: The rights to receive cash flows from the asset have expired; The Company retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a pass-through arrangement; or The Company has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. Financial liabilities A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of existing financial liability are substantially modified, such an exchange or modification is treated as a derecognition of original financial liability and recognition of new liability, and the difference in the respective carrying amounts is recognised in the statement of profit or loss. Trade and other payables Liabilities are recognized for amounts to be paid in the future for goods or services received, whether billed by the supplier or not. PricewaterhouseCoopers- Qatar Branch, P.O. Box: 6689,Doha,Qatar. Ministry of Economy and Commerce License number 6/ Qatar Financial Markets Authority License number T: , F: , me

5 Sunday, February 18, Mesaieed Petrochemical Holding Company Q.S.C Provisions Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the statement of financial position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. Foreign currency translation In preparing the financial statements of the Company, transactions in currencies other than the Company s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except as otherwise stated in the Standards. Fair values The fair value of financial investments that are actively traded in organized financial markets is determined by reference to quoted market bid prices for assets and offer prices for liabilities at the close of business at the end of the reporting period. For financial instruments where there is no active market, the fair value is determined by using valuation techniques. Such techniques include using recent arm s length transactions, reference to the current market value of another instrument which is substantially the same and/or discounted cash flow analysis. For discounted cash flow techniques, estimated future cash flows are based on management s best estimates and the discount rate used is a market related rate for a similar instrument. If the fair values cannot be measured reliably, these financial instruments are measured at cost. Dividend distributions Dividend distributions are at the discretion of the shareholders. A dividend distribution to the Company s shareholders is accounted for as a deduction from retained earnings. A declared dividend is recognised as a liability in the period in which it is approved at the Annual General Assembly. Social and Sports Fund Contribution Pursuant to the Qatar Law No. 13 of 2008 and the related clarifications issued in 2011, which is applicable for all Qatari listed shareholding companies with publicly traded shares, the Company has made an appropriation of 2.5% of its net profit to a state social fund. Tax receivable On 26 February 2014, the Company was listed on Qatar Exchange. Subsequent to a receipt of clarification from the Public Revenue and Tax Department, the Company is eligible for a tax refund in virtue of tax exemption status of its public shareholding interest in the joint ventures. (Note 17). Earnings per share The Company presents basic and diluted earnings per share ( EPS ) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the effect of any dilutive potential ordinary shares. 3. INVESTMENTS IN JOINT VENTURES The carrying amount of the investments in joint ventures has changed as follows: 31 December 31 December For the year ended Balance at beginning of the year 13,149,165 13,138,932 Share of results from joint ventures for the year 971, ,261 Less: share of dividends receivable / received from joint ventures (958,463) (891,028) Balance at end of the year 13,162,384 13,149,165 The financial statements below present amounts shown in the financial statements of the joint ventures as of 31 December 2017, which are presented in US$ 000 and are translated using an exchange rate of 3.64 in the below table: i. Statement of financial position of joint venture entities As at 31 December 2017 Current assets 1,512,511 2,287,888 1,319,282 5,119,681 Non-current assets 2,294,732 5,446,869 1,120,894 8,862,495 Current liabilities (630,062) (1,131,607) (423,412) (2,185,081) Non-current liabilities (869,854) (1,931,704) (206,206) (3,007,764) Equity 2,307,327 4,671,446 1,810,558 8,789,331 Adjustment for dividends equalisation account - - (70,656) (70,656) Equity after adjustment 2,307,327 4,671,446 1,739,902 8,718,675 Proportion of the Company s ownership 49% 49% 55.2% Company s share of net assets 1,130,590 2,289, ,426 4,380,025 Goodwill 3,549,403 4,878, ,245 8,782,359 Investment in joint ventures 4,679,993 7,167,720 1,314,671 13,162,384 Q-Chem Q-Chem II QVC Total (Restated)* (Restated)* (Restated)* Current assets 1,807,777 2,347,434 1,057,848 5,213,059 Non-current assets 2,241,787 5,725,831 1,245,896 9,213,514 Current liabilities (894,972) (1,046,425) (184,686) (2,126,083) Non-current liabilities (873,156) (2,406,186) (257,799) (3,537,141) Equity 2,281,436 4,620,654 1,861,259 8,763,349 Adjustment for dividends equalization - - (77,234) (77,234) account Equity after adjustment 2,281,436 4,620,654 1,784,025 8,686,115 Proportion of the Company s 49% 49% 55.2% ownership Company s share of net assets 1,117,904 2,264, ,782 4,366,806 Goodwill 3,549,403 4,878, ,245 8,782,359 Investment in joint ventures 4,667,307 7,142,831 1,339,027 13,149,165 *RESTATEMENT Offsetting arrangement Q-chem and Q-chem II The receivables under finance leases (presented within non-current assets), the loan due to related party (presented within non-current liabilities) for Q-Chem, the obligation under finance leases (presented within non-current liabilities) and the loan receivable from related party (presented within non-current assets) for Q-Chem II, were previously presented on gross basis in the statement of financial position. During the current year, it has been determined that finance leases and related party loan meet the offsetting criteria as per IAS 32 Financial Instruments: Presentation. Accordingly, the finance leases and the related party loan are presented on a net basis in the statement of financial position of both ventures. The above adjustment has resulted in the restatement of comparative amounts in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The above adjustment did not have any impact on the Company s investment in joint ventures. In addition, certain reclassifications have been made to prior year's financial statements of both ventures to enhance comparability with the current year's financial statements. The impact of such adjustments on the comparative financial statements of the two ventures is as follows: Q-Chem statement of financial Previously position reported Adjustments Restated Current assets 1,816,777 (9,000) 1,807,777 Non-current assets 2,487,323 (245,536) 2,241,787 Current liabilities (903,972) 9,000 (894,972) Non-current liability (1,118,692) 245,536 (873,156) Q-Chem II statement of financial Previously position reported Adjustments Restated Current assets 2,356,434 (9,000) 2,347,434 Non-current assets 5,971,367 (245,536) 5,725,831 Current liabilities (1,055,425) 9,000 (1,046,425) Non-current liability (2,651,722) 245,536 (2,406,186) The restatement only affected the said joint ventures statement of financial position as of 31 December The restatement did not affect the statements of changes in equity, comprehensive income, and cash flows during the year ended 31 December Deferred tax liability - QVC QVC has reversed the deferred tax liability on the non-taxable shareholding (25.52%) as it was not in line with IAS 12. As the amount was built up as a deferred tax liability through statement of changes in equity, it has been reversed to equity. Future dividends will be payable to the tax exempt shareholder by virtue of this deferred tax liability. Accordingly, this has been recognised as a component of equity and classified as Dividend equalisation reserve to allow tracking of the amounts with QVC. The amounts have been corrected by restating each of the affected financial statement line items for the prior periods as follows: Previously QVC statement of financial position reported Adjustments Restated Deferred tax liability 302,637 (77,234) 225,403 Dividend equalisation reserve - 77,234 77,234 Net assets 1,784,025 77,234 1,861,259 Retained earnings 777, ,668 Total equity 1,784,025 77,234 1,861,259 ii. Statement of comprehensive income of joint venture entities For the year ended 31 December 2017 Revenue 2,208,876 2,737,382 1,626,192 6,572,450 Cost of sales (1,287,475) (1,545,344) (1,109,257) (3,942,076) Other income 5,598 94,778 16, ,585 Administrative expenses (35,865) (17,035) (141,075) (193,975) Finance income / (cost) 10,152 (26,372) 10,298 (5,922) Profit before tax 901,286 1,243, ,367 2,547,062 Deferred income tax 45,489 (137,021) 19,197 (72,335) Current income tax (356,680) - (129,391) (486,071) Profit for the year 590,095 1,106, ,173 1,988,656 Distributions to tax exempt shareholders - - (37,816) (37,816) Profit for the year net of distributions to tax exempt shareholders 590,095 1,106, ,357 1,950,840 Proportion of the Company s ownership 49% 49% 55.2% Company s share of profit for the year in joint ventures 289, , , ,682 For the year ended 31 December 2016 Revenue 2,260,884 2,657,490 1,442,130 6,360,504 Cost of sales (1,220,972) (1,450,036) (1,077,902) (3,748,910) Other income / (expense) 564 (10,192) 337 (9,291) Administrative expenses (34,009) (18,495) (140,358) (192,862) Finance income / (cost) 12,591 (26,732) 7,356 (6,785) Profit before tax 1,019,058 1,152, ,563 2,402,656 Deferred income tax 38,144 (139,008) (18,735) (119,599) Current income tax (399,388) - (42,348) (441,736) Profit for the year 657,814 1,013, ,480 1,841,321 Distributions to tax exempt shareholders - - (20,935) (20,935) Profit for the year net of distributions to tax exempt shareholders 657,814 1,013, ,545 1,820,386 Proportion of the Company s 49% 49% 55.2% ownership Company s share of profit for the year in joint ventures 322, ,383 82, ,261 iii. Additional disclosures of joint venture entities As at 31 December 2017 Cash and cash equivalents 564, , ,671 2,147,210 Depreciation and Amortisation 222, , , ,280 Interest bearing loans and borrowings - 1,545,984-1,545,984 Deferred tax liabilities 569, , ,206 1,772,105 Tax payable 356, , , ,447 Company s share of dividend declared/received 276, , , ,463 Current Financial liabilities (excluding trade and other payables and provisions) - 611, ,622 Non- current financial liabilities (excluding trade and other payables and provisions) 300, ,363-1,234,830 Cash and cash equivalents 851,658 1,005, ,282 2,331,959 Depreciation and Amortisation 183, , , ,388 Interest bearing loans and borrowings - 2,099,548-2,099,548 Deferred tax liabilities 614, , ,633 1,777,000 Tax payable 399, ,958* 27, ,205 Company s share of dividend declared/received 285, ,244 88, ,028 Current Financial liabilities (excluding trade and other payables and provisions) - 553, ,568 Non- current financial liabilities (excluding trade and other payables and provisions) 154,281 1,545,981-1,700,262 *Q-Chem II s income tax liability will be undertaken and settled by QP or an entity owned by QP for the first 10 years from the commercial operations date of Q-Chem II. iv. Capital commitments and contingent liabilities The Company s share in the joint ventures commitments and contingent liabilities is as follows: As at 31 December 2017 Capital commitments 62,726 60, ,864 Operating lease commitments: Future minimum lease payments: Within one year 6,558 4,004 8,694 19,256 After one year but not more than five years 24,958 16,937 2,805 44,700 More than five years 18,854 40,966 2,281 62,101 Total operating lease commitments 50,370 61,907 13, ,057 Purchase commitment 200, , ,720 Contingent liabilities 1, ,591 Capital commitments 90,043 41, ,203 Operating lease commitments: Future minimum lease payments: Within one year 6,444 14,301 10,077 30,822 After one year but not more than five years 16,325 59,483 13,553 89,361 More than five years 10, ,032 2, ,809 Total 33, ,816 26, ,992 Contingent liabilities - 1,459-1,459 The joint ventures have purchase commitments that consist primarily of major agreements for procuring of gas from QP. The joint ventures also have a number of agreements for electricity, industrial gases and manpower. Other contingent liabilities Site restoration obligations Ras Laffan Olefins Company Limited Q.S.C. (a joint venture of Qchem-II) has entered into a land lease agreement with the Government of Qatar represented by QP for the purpose of construction of the plant facilities. Under the original and revised lease agreement, the lessor has the right, upon termination or expiration of the lease term, to notify the joint venture that it requires to either: transfer all the facilities to the lessor or a transferee nominated by the lessor, against a price acceptable by the joint venture, or; remove the facilities and all the other property from the land and restore it to at least the condition in which it was delivered to the joint venture, at the joint venture s cost and expense, unless otherwise is agreed with the lessor. As at 31 December 2017, no provision has been recognised for site restoration obligations. The estimated useful lives of the assets are expected to continue well beyond the term of land lease agreement, such that management believes that the lessor is unlikely to require site restoration at the end of the land lease agreement. PricewaterhouseCoopers- Qatar Branch, P.O. Box: 6689,Doha,Qatar. Ministry of Economy and Commerce License number 6/ Qatar Financial Markets Authority License number T: , F: , me

6 22 Sunday, February 18, 2018 Mesaieed Petrochemical Holding Company Q.S.C 4. OTHER RECIEVABLES The tables below show the distribution of bank balances at the date on which the financial statements are issued: Other receivables comprises of the interest receivable on the Term Deposits made with various banks. 5. CASH AND CASH EQUIVALENTS Cash and cash equivalent 50, ,639 Liquidity risk Rating Bank balance A-1 582,599 A-2 519,116 A-3 295,058 Aa ,396, DEPOSITS AND OTHER BANK BALANCES Fixed deposits maturing after 90 days 1,208, ,740 Bank balances-dividends account 138, ,480 1,346, ,220 Cash at banks earn interest at fixed rates. Term deposits are made for varying periods of between three months and one year depending on the immediate cash requirements of the Company at interest varying between of 2.85 % to 3.50 % (2016: 3.0% to 3.4%). 6. RELATED PARTIES Related parties, as defined in International Accounting Standard 24: Related Party Disclosures, include associate companies, major shareholders, directors and other key management personnel of the Company, and entities controlled, jointly controlled or significantly influenced by such parties. Related party transactions Transactions with related parties included in the statement of profit or loss and other comprehensive income for the year ended are as follows: For the year ended Dividend income from Q-Chem 276, ,376 Dividend income from Q-Chem II 517, ,244 Dividend income from QVC 164,761 88,408 Annual service fee to Qatar Petroleum (7,176) (7,913) Qatar Petroleum is the parent company, which is state-owned public corporation established by Emiri Decree No. 10 in Related party balances Balances with related parties included in the statement of financial position are as follows: As at Dividend due from Q-Chem - 98,098 Amount due to QP 7,902 8,166 Compensation of key management personnel The remuneration of key management personnel during the year was as follows: Key management remuneration Board of directors remuneration 3,800 3,800 The Company has established a remuneration policy for its Board of Directors. This policy is comprised of two components; a fixed component and a variable component. The variable component is related to the financial performance of the Company. The total Directors remuneration is within the limit prescribed by the Qatar Commercial Companies Law. 7. TRADE AND OTHER PAYABLES Dividends payable 138, ,480 Social and sports fund contribution payable 27,206 24,866 Accruals 4,333 4, , , SHARE CAPITAL Authorised, issued and fully paid: 1,256,317,500 shares of QR 10 each 12,563,175 12,563,175 In 2017, 232,179 additional shares (2016: 217,631 shares) have been transferred from QP to the Public on account of incentive shares transferred due to death of original shareholder(s). As of the closing date, QP holds 932,428,945 shares including 1 special share (2016: 932,661,124 shares including 1 special share) comprising % (2016: %) of total shareholding. 9. LEGAL RESERVE The Articles of Association of the Company states that prior to recommending any dividend for distribution to Shareholders, the Board shall ensure proper reserves are established in respect of any voluntary or statutory reserves considered by the Board to be necessary or appropriate. Such reserves as resolved by the Board shall be the only reserves the Company is required to have. 10. DIVIDENDS The Board of Directors has proposed cash dividend distribution of QR 0.70 per share for the year ended 31 December 2017 (2016: QR 0.6 per share). The proposed final dividend for the year ended 31 December 2017 will be submitted for formal approval at the Annual General Meeting. On 6 March 2017, the shareholders approved to distribute cash dividends of QR 754 million. 11. BASIC AND DILUTED EARNINGS PER SHARE Basic and diluted earnings per share (EPS) are calculated by dividing the profit for the year attributable to equity holders of the Company by weighted average number of shares outstanding during the year. The following reflects the income and share data used in basic and diluted earnings per share computation: Profit attributable to the equity holders for the year 1,088, ,648 Weighted average number of shares outstanding during the year (in thousands) 1,256,317 1,256,317 Basic and diluted earnings per share (expressed in QR per share) The figures for basic and diluted earnings per share are the same, as the Company has not issued any instruments that would impact the earnings per share when exercised. 12. FINANCIAL RISK MANAGEMENT The Company s principal financial liabilities, comprise trade accounts payable and due to a related party. The Company has various financial assets, namely, amounts due from a related party, interest receivable and bank balances, which arise directly from its operations. The main risks arising from the Company s financial instruments are interest rate risk, credit risk, liquidity risk and foreign currency risk. The management reviews and agrees policies for managing each of these risks which are summarized below: Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The following table demonstrates the sensitivity of the statement of profit or loss and other comprehensive income to reasonably possible changes in interest rates, with all other variables held constant. Increase in Effect on Increase in Effect on basis points profit 2017 basis points profit 2016 Term deposits +/- 25 +/- 3,021 +/- 25 +/-2,131 Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company s exposure to credit risk is as indicated by the carrying amount of its financial assets which consist principally of amounts due from a related party and bank balances, as follows: Amounts due from a related party - 98,098 Interest receivable 12,518 7,656 Bank balances 1,396,953 1,081,859 1,409,471 1,187,613 Liquidity risk is the risk that the Company will not be able to meet financial obligations as they fall due. The Company s approach to managing liquidity risk is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company s reputation and is to maintain a balance between continuity of funding and flexibility through the use of bank facilities. All financial liabilities will mature within 12 months from the end of the reporting period. Capital management The Company manages its capital structure and makes adjustments to it, in light of changes in economic and business conditions and shareholders expectation. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. Capital comprises share capital and retained earnings and is measured at QR billion (2016: QR billion). 13. FAIR VALUES OF FINANCIAL INSTRUMENTS The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Bank balances, interest receivable, amounts due from a related parties, trade payables, and amounts due to a related party approximate their carrying amounts largely due to the short-term maturities of these instruments. 14. CRITICAL JUDGMENT AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the Company s accounting policies, which are described in note 2, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Classification of the investments as joint ventures Management evaluated the Company s interest in Q-Chem, Q-Chem II and QVC (together the Entities ), and concluded that the joint arrangements are joint ventures where the Entities are jointly controlled. Hence, Management accounted for these investments under the equity method. Impairment of investment in joint ventures The Company assesses the impairment of non-financial assets, particularly its investment in joint ventures, whenever events or changes in circumstances indicate that the carrying amount of the non-financial asset may not be recoverable. Impairment testing is an area involving management judgment, requiring assessment as to whether the carrying value of assets can be supported by the net present value of future cash flows derived from such assets using cash flow projections which have been discounted at an appropriate rate. In calculating the net present value of the future cash flows, management applied the following significant assumptions: Discount rates: 10% for all ventures Earnings before Interest and Tax (EBITA): 25.4%, 34.9% and 41.8% for QVC, Q-Chem and Q-Chem II, respectively Terminal period growth rate: 4% for all ventures An impairment loss is recognized whenever the carrying amount of an asset or investment exceeds its recoverable amount. The recoverable amount is the higher of an asset s fair value less cost to sell and value in use. The fair value less cost to sell is the amount obtainable from the sale of an asset in an arm s length transaction while value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Recoverable amounts are estimated for individual assets or investments or, if it is not possible, for the CGU to which the asset belongs. In determining the present value of estimated future cash flows expected to be generated from the continued use of the assets, the Company is required to make estimates and assumptions that can materially affect the financial statements. As of the year ended 31 December 2017 the company did not recognise any losses due to impairment in its joint ventures. Site restoration obligations As required by IAS 37 - Provisions, Contingent Liabilities and Contingent Assets, the Company assess whether the following criteria is met to recognise provisions: whether the Company has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and; a reliable estimate can be made of the amount of the obligation. As explained in Note 3 (iv), the Company may be required under a lease agreement entered into by its joint venture Q-Chem-II, to make payments for site restoration at the option of the parent (QP). It has been assessed that the optionality given to QP makes it more likely to acquire the plant from the joint venture rather than restoring the site at the cost of the joint venture given the estimated useful lives of the assets are expected to continue well beyond the term of land lease agreement. Therefore, no provision has been made in the financial statements. 15. SOCIAL AND SPORTS FUND CONTRIBUTION In accordance with Law No. 13 of 2008, the Company made an appropriation of profit of QR million (2016: million) equivalent to 2.5% of the net income for the year for the support of sports, cultural, social and charitable activities. 16. SEGMENT INFORMATION For management purposes, the Company is organized into business units based on their products and services, and has one reportable operating segment which is the petrochemical segment from its interest in joint ventures, which produce and sell polyethylene, 1-hexene, normal alpha olefins, other ethylene derivatives, caustic soda, ethylene dichloride and vinyl chloride monomer and other petrochemical products. Geographically, the Company only operates in the State of Qatar. 17. TAX REFUND On 26 February 2014, the Company was listed on Qatar Exchange. As at 31 December 2017, the public shareholding in the Company amounted to %. Subsequent to a receipt of clarification from the Public Revenue and Tax Department, the Company is eligible for a tax refund. As of 31 December 2017, the Company s tax refund amounted to QR million (2016: QR million). The statement of profit or loss impact for the year amounts to QR million (2016: QR million). 18. COMPARATIVE FIGURES Comparative figures of prior year have been reclassified in order to conform to the presentation in the current year s financial statements. The impacts of such reclassifications on the comparative financial statements are as follows: Previously 31 December 2016 reported Reclassification Restated Statement of financial position (extract) Current assets Prepayments and other debit balances 97,416 (97,416) - Other receivables - 7,656 7,656 Tax receivable - 89,760 89,760 Bank balances 1,081,859 (1,081,859) - Deposits and other bank balances - 964, ,220 Cash and cash equivalent - 117, ,639 Other reclassifications relate to cash flow presentation and do not affect the previously reported profit or net assets. PricewaterhouseCoopers- Qatar Branch, P.O. Box: 6689,Doha,Qatar. Ministry of Economy and Commerce License number 6/ Qatar Financial Markets Authority License number T: , F: , me

7 Economy & Business BOOSTING TRADE For now the volume of trade is very much in favour of Qatar but there is a huge potential for Qatar to import from Kenya most of its food requirements, as Kenya is very close to Qatar in terms of geographical proximity Kenya s Ambassador to Qatar HE Galma Mukhe Boru QATAR S HANDLING OF CRISIS worth emulating: Kenyan ambassador ASIF IQBAL ATAR-KENYA relations are all set for a big upsurge with the two countries having signed a number of agreements, including on economic, commercial and technical cooperation, says Kenya s Ambassador to Qatar HE Galma Mukhe Boru, in an exclusive interview with Qatar Tribune. The exemplary manner, humility and maturity that Qatar has displayed in handling the diplomatic crisis is really worth emulating, a top African diplomat has said. Despite the adverse situation created by the blockade, Qatar has from day one called for dialogue to resolve any differences while maintaining its sovereignty. This is worth emulating. Qatari people have always emphasized the bond of kinship that exists among the Gulf families, Kenya s Ambassador to Qatar HE Galma Mukhe Boru told Qatar Tribune in an exclusive interview. I congratulate the Emir His Highness Sheikh Tamim bin Hamad al Thani and the people of Qatar on the way they have handled the crisis since it erupted in June We admire the leadership for the respect it has given to the people in the face of the crisis, Boru said. The envoy said the volume of trade between Kenya and Qatar as of 2015 stood at exports from Kenya to Qatar at $9,106,520 and imports at $54,644,023. The trade imbalance is about $45,448,222. Kenya s exports to Qatar include fruits and vegetables, meat and meat products, fruit juices, flour, tea, coffee, cut flower, pulses, fodder for animals etc, while it imports from Qatar chemicals, petrochemicals, fertilizers, plastics and furniture. For now the volume of trade is very much in favour of Qatar but there is a huge potential for Qatar to import from Kenya most of its food requirements, as Kenya is very close to Qatar in terms of geographical proximity, Boru added. Regarding the investments being made between the two countries, the envoy said the investments are mainly from Qatar to Kenya in various sectors. The sectors in which Qatar has invested include hospitality industry, oil and gas, mining, retail, energy (especially in geothermal power generation), and education. There is still huge potential for investments that Kenya s Ambassador to Qatar HE Galma Mukhe Boru guarantee huge returns for investors. Potential exists in sectors such as real estate, manufacturing, transportation infrastructure (roads, railways, ports, drainage systems, power production and transmission), and education. In reply to a question Sunday, February 18, 2018 EXEMPLARY LEADERSHIP I congratulate the Emir His Highness Sheikh Tamim bin Hamad al Thani and the people of Qatar on the way they have handled the crisis since it erupted in June We admire the leadership for the respect it has given to the people in the face of the crisis Despite the adverse situation created by the blockade, Qatar has from day one called for dialogue to resolve any differences while maintaining its sovereignty. This is worth emulating. Qatari people have always emphasized the bond of kinship that exists among the Gulf families Kenya offers great safari expeditions and has well-developed tourist attraction sites, a rich culture and excellent climate 23 about how the embassy is helping Kenyan investors, Boru said, Our role is to provide as much information as possible for Kenyans who want to trade or invest in Qatar. To facilitate these endeavours, Kenya and Qatar have signed a number of agreements, including on economic, commercial and technical cooperation; agreement on the avoidance of double taxation and prevention of fiscal evasion with regard to taxes on income; and agreement on the reciprocal promotion and protection of investment. According to the Kenyan envoy, the ties between the two countries are based on cooperation, mutual respect and brotherhood which will continue to flourish, especially in trade and investment, as well as in all other spheres. The Kenyan ambassador said more than 24,000 Kenyans are living in Qatar. They are working in sectors like hospitality; as pilots, avionic engineers, ground services personnel and cabin crew; in banking and financial services sector as chief operating officers, asset managers, financial risk analysts etc; in taxi and limousine as drivers and mechanics; in construction and security sector; journalists etc. On tourism, Boru said the number of visitors from Qatar to Kenya has increased exponentially over the years. The embassy, he noted, continues to issue more visas to Qataris and members of other nationalities and those who visit Kenya come back with stories of how wonderful the country is, and in return, many more are interested to visit. Kenya offers great safari expeditions and has well-developed tourist attraction sites, a rich culture and excellent climate, the envoy said. Lost in translation? GM plant shutdown shocks South Korea REUTERS SEOUL ONLY weeks into a new job heading General Motors Co s international operations, Barry Engle flew into a frigid South Korea in January and held a series of meetings with government officials to discuss the future of GM s loss-making local unit. In what they thought were meetand-greet introductions, senior officials agreed to work with the global automaker on problems at GM Korea, according to South Korean officials with direct knowledge of the meetings. Last week, Engle made another visit, meeting with the head of state-run Korea Development Bank, which owns 17 percent of GM Korea. Bank and government officials said Engle asked for financial support and in return, KDB suggested an audit before it would consider committing any fresh funding. South Korea officials said they left reassured they were making progress working through issues, albeit slowly. Then came the bombshell. On Tuesday morning, GM announced it would shut its Gunsan plant, which employs 2,000, and decide the future of the remaining three other Korean plants within weeks. GM only talked about the difficult situation they were in, and asked for our help, but did not say a word about the closure before. It was a shock to us, a South Korean government official said. The discord and lack of communications point to rocky negotiations ahead as South Korea seeks to prevent further job losses and provide support for a critical part of its manufacturing sector while avoiding criticism for spending tax payers money to support private industry. The tensions also come at a difficult time for US-South Korean relations given US President Donald Trump s determination to renegotiate the US-Korea Free Trade Agreement. Any undermining of the Seoul-Washington relationship could also factor against efforts to pressure North Korea over its nuclear and missile programmes. The government official and another source said GM informed Seoul about the decision in a phone call only the evening before its announcement. The sources declined to be identified because of the sensitive ongoing nature of the matter. A GM Korea spokesman confirmed the company notified the government about Gunsan closure on Monday, but said the matter had been already discussed and approved by the board, including board members nominated by KDB, last week. We plan to seek full support from government and other stakeholders about our turnaround plan, he said. KDB declined to comment. South Korea s government said it deeply regretted GM s unilateral decision and any aid would depend on GM s new investment into its Korean operations. GM said it will invest if it is successful in working with our stakeholders to restructure and get to a viable cost structure. There is deep rooted distrust about GM among government officials. Trust has collapsed a long time ago, a person familiar with the South Korean government s thinking said. KDB believes GM Korea has not shared sufficient information about its finances or the cause of its mounting losses, this person added. The GM Korea spokesman said it will explain its transparent practice to the government during upcoming discussions. South Korea was for years a lowcost export hub for GM, producing close to a fifth of its global output at its peak. But the automaker s decisions to exit other unprofitable markets have exacerbated problems for GM Korea, which used to build many of the Chevrolet models GM once offered in Europe. In December 2013, GM announced its decision to pull Chevrolet out of Europe. Last year, GM agreed to sell its Opel and Vauxhall brands in Europe to PSA Group GM Korea, which South Korea s trade ministry says directly employs nearly 16,000 workers and supports another 140,000 jobs in its supply chain, posted a total of 1.9 trillion won ($1.8 billion) in net losses between 2014 and A further complication is pressure from the administration of US President Donald Trump to address the US trade imbalance with South Korea and bring manufacturing back to the United States. Trump is putting pressure on GM to shift production to US It is Government Motors, not General Motors, the person said. However, the GM Korea spokesman said: The Gunsan plant announcement is related to our need to restructure our business in South Korea, and is not being done for political reasons. Sources familiar with GM s future planning say the company s global production strategy is still fluid, but GM could shift production out of Korea to an existing plant in another country. GM s announcement of the Gunsan plant shutdown and launch of voluntary redundancy plans couldn t have come at a worse time. Many salaried South Koreans get bonuses and gifts to celebrate Friday s Lunar New Year holiday. South Korean officials are also in the middle of hosting the Winter Olympic Games and have been focused lowering tensions with North Korea, which sent a high level delegation last week. A Detroit-based source at GM told Reuters the timing of the announcement was dictated by urgency of the matter as its 2018 wage negotiations with South Korean workers have begun. Top management decided the time had come to put a lid on the losses, starting with closure of the Gunsan plant, the person said. GM s approach has prompted speculation in South Korea that the automaker is seeking to maximize pressure on President Moon Jaein s administration, which has touted job creation as its top economic policy. Bail out or not, the decision will be inevitably a political one, said Yun Chang-hyun, an economics professor at Seoul National University.

8 24 Sunday, February 18, 2018 The awards are an appreciation of the bank s relentless efforts to provide the best services and products in the Islamic banking sector. Economy & Business Barwa Bank named best Shariah-compliant bank in Qatar Barwa Bank Group CEO honoured with Best Banking CEO title at European Magazine Awards 2017 TRIBUNE NEWS NETWORK BARWA Bank, a progressive Shari ah-compliant service provider, walked away with two prestigious titles at the European Magazine Global Banking & Finance Awards The bank was named the Best Shariah-Compliant Bank in Qatar, while Barwa Bank Group CEO Khalid Yousef al Subeai claimed the country s Best Banking CEO title. Sheikh Mohammed bin Hamad bin Jassim al Thani, Chairman and Managing Partner of Barwa Bank Group, said, The Best Shariah-compliant Bank in Qatar award is an appreciation of our relentless efforts to provide the best services and products in the Islamic banking sector to meet the objectives of a wide range of customers and contribute to the prosperity of the national economy according to the Islamic principles and industrial practices with the The European Magazine Global Banking & Finance Awards celebrate the achievement, innovation and excellence of financial institutions around the world modern standards of conventional banking. This prestigious award motivates us to make every effort to further enhance our services and provide innovative finance services and products to meet the needs of our corporate and individual customers." Khalid Yousef al Subeai, Acting CEO of Barwa Bank Group, said, It is our profound pleasure at Barwa Bank to earn the highly regarded title of the Best Shariah-Compliant Bank in Qatar. This cherished recognition is a testament to the relentless efforts that Barwa Bank has continued to make this year, while contributing to the advancement of the Islamic banking sector in the entire region. It is also a well-deserved tribute to the creative minds and dedicated workforce behind Barwa Bank s success, whose relentless pursuit of excellence and innovative efforts seamlessly bridge Shari ah-compliant principles with modern standards of conventional banking for an unmatched customer experience. I am also deeply humbled for being named the Best Banking CEO in the country, which I can only attribute to the amazing team and hard-working employees of our Group. It is with great honour that we receive these two esteemed titles, which only propels us to take our innovation to the next level and continue to lead our clients experience, our banking group, and the industry to new frontiers. The European Magazine Global Banking & Finance Awards celebrate the achievement, innovation and excellence of financial institutions around the world. Time Rako Hotel opens in Al Wakra The hotel has been designed and developed to meet the needs of both business executives and families The four-star property, located on Mesaieed Road in Al Wakra, is a member of the well-respected Time Hotels, a regional brand. Rako, which means relaxation or enjoyment in Japanese, will offer a perfect blend of luxury accommodations, services and amenities. TRIBUNE NEWS NETWORK THE TIME Rako Hotel opened its doors to warmly welcome guests into its first hotel in Qatar on February 16. The four-star property, located on Mesaieed Road in Al Wakra, is a member of the well-respected Time Hotels, a regional brand. Rako, which means relaxation or enjoyment in Japanese, will offer a perfect blend of luxury accommodations, services and amenities. Keeping with the growth and progress required of an ambitious nation like Qatar, the Time Rako Hotel has been designed and developed to meet the needs of both business executives and families. Recounting the objective behind the venture, Lahdan Eisa al Mohanadi, owner of Time Rako Hotel, said, We are proud to have launched the Time Rako Hotel in Doha. Hospitality has always been a hallmark of the Qatari culture. The foresight demonstrated by the Qatari leadership to promote the growth of the country through a diversified economy has resulted in continued proactive policies to promote tourism. Time Rako Hotel will be a leader in the much-needed market segment for high quality hotels. We believe in setting the scene for a value-based experience. We are proud to say our project is well in line with the nation s aspirations. We are also pleased that we have strategically opened our hotel in Al Wakra. The area holds much potential and gives us an opportunity to fulfil the hospitality needs of the Mesaieed area. Time Rako Hotel is ideally located 15 minutes away from the city centre of Doha. It is only 10 minutes from Hamad International Airport and 15 minutes from Hamad Port. Providing further details on the significance of the new venture, Mohamad Awadalla, CEO of Time Hotels said, Time Hotels is a regional brand and it is our mission to become a leader. Our properties are operated and overseen by a team of experienced professionals. The rooms managed by Time Hotels are renowned for the unique, upscale lodging experience that our guests enjoy. Our multicultural team is dedicated to providing first-class hospitality services for our business and leisure guests. Respectful service is our hallmark. The hotel offers 102 rooms and suites, three of which are equipped for differently abled individuals, and smoking is not allowed in all hotel. Ideal for both business executives and families, this modern hotel blends residence privacy with the luxury and convenience of hotel services and facilities. Amenities include a gift shop. For those looking for a place to relax by the waters, the hotel has a temperaturecontrolled pool on the terrace. In addition, this property is only a two-minutes walk from the beach. Pointing out some of the services and amenities offered, Chris Fourment, the General Manager, said, Guests at the Time Rako Hotel can benefit from the various conference, weddings and business facilities we offer as well as amenities for fitness and leisure. They can also delight in a gourmet experience through the wide choice of cuisine offered at our four venues. An all-day-dining Medzo Restaurant seating 98, a specialty seafood restaurant-sraidan, a lobby lounge Breeze Café and Waves Pool Lounge at the rooftop with a large outdoor terrace, all offering gastronomic delights. Our guests will not only enjoy all our modern conveniences and services, but will also experience the time-honoured Qatari tradition of hospitality. Qatar has been predominantly a business destination, with the corporate and MICE (meetings, incentives, conventions and events) segments accounting for more than 75 percent of hotel demand, a trend expected to continue in the short-term. Time Rako Hotel will be tapping into this high demand segment, while indulging in the needs of the leisure traveller as well offering three large banquet rooms that will be combined into one ballroom to host upcoming leisure and business needs. The hotel is well-equipped to cater to the needs of modern travellers while enhancing their experience. QIB awards 50 lucky Misk Saving Account winners The Misk account grants a total of 230 savers QR10,000 throughout the year and one lucky saver a grand prize worth QR1,000,000. TRIBUNE NEWS NETWORK QATAR Islamic Bank (QIB) awarded 50 lucky Misk Savings Account winners a prize worth QR10,000 over the last 10 weeks. The Misk account grants a total of 230 savers QR10,000 throughout the year and one lucky saver a grand prize worth QR1,000,000. The latest five winners from this week s draw include Rowdha Mohamed, Mucharun Sumartono, Sada Jalil, Ahmad al Abdulla, and Hassan Aqeel. Customers who open a Misk Savings Account have the chance to win exciting prizes on a weekly basis. Every week, five winners from the Misk account holders are announced after a random draw held in the presence of an official representative from the Ministry of Economy and Commerce and QIB representatives. In November 2018, one lucky customer will win the grand prize of QR1,000,000. We would like to congratulate the Misk Account winners we have so far, and encourage our customers to save more and get the chance to be the next lucky winners, said D Anand, QIB s Personal Banking Group General Manager. Misk Savings Account encourages our customers to save more in anticipation of their future needs and aspirations while meeting current financial needs and lifestyle, he added. All Qatari citizens and residents are eligible to open a Misk Account for themselves or their minor children. A minimum of QR2,000 is required to open the account, with customers having to maintain a minimum monthly balance of QR10,000 to be eligible for the weekly draws. To qualify for the grand prize draw, the customer must open the account three months prior to the draw and maintain a minimum of QR10,000 for each of these months. Every additional QR10,000 earns the customer one more chance in the draw. When opening a Misk Account, customers will also receive a free debit card as well as access to QIB s new mobile banking app and the internet banking platform. QIC CELEBRATES QATAR S HANDBALL GOLD WIN Qatar Insurance (QIC) celebrated Qatar s third gold medal at the recent Asian Men s Handball Championship by hosting a function at the Sheraton Hotel. OIC officials, players and Qatar Handball Federation officials attended the event.

9 Insurance Main index regains positive momentum Investors wealth increases by QR3.65 billion to QR billion during the week SATYENDRA PATHAK Focus QSE Weekly Analysis Sunday, February 18, Index gains some strength, says QNBFS The QSE main index gained some strength through the week and the moving average convergence divergence (MACD) is now departing zero line upwards, which is a positive for the weeks to come, QNB Financial Services (QNBFS) has said in its weekly report. Our current support level remains at 8,000 points and the resistance at 10,000 points, the report said. Top 5 gainers Qatari funds turn bullish Qatari institutions turned bullish with net buying of QR71.8 million against net selling of QR49.3 million in the previous week. Qatari retail investors, however, remained bearish with net selling of QR21.2 million against net selling of QR2.4 million the week before. QATARI stocks regained positive momentum after two consecutive weeks of loss by closing the week in the green amid thin trading. The Qatar Stock Exchange (QSE) main index increased points, or 1.51 percent, during the trading week to close at 9, points. Market capitalisation increased by QR3.65 billion, or 0.8 percent, to QR billion compared to last week s closing at QR billion. Trading value during the week decreased by 37.1 percent to reach QR809.3 million against QR1.3 billion in the previous week. The banks and financial services sector led the trading value during the week, accounting for 45.8 percent of the total trading value. The industrial sector was the second biggest contributor to the overall trading value, accounting for 20.2 percent of the total trading value. Qatar National Bank was the top value traded stock during the week with total traded value of QR85.7 million. Trading volume during the week decreased by 30.1 percent to reach 36.2 million shares against 51.8 million shares in the previous week. The banks and financial services sector led the trading volume, accounting for 47.7 percent, followed by the industrial sector which accounted for 18.6 percent of the overall trading volume. Qatar First Bank (QFB) was the top volume traded stock during the week with 7.8 million shares. The number of transactions dropped by 35.2 percent to reach 14,439 against 22,273 transactions in the previous week. The banks and financial services sector led trading transactions during the week, accounting for percent of the total number of transactions, followed by the industrial sector, which accounted for Weekly Trading Report ( February ) % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % percent. The real estate sector ranked third, accounting for percent. Foreign institutions turned bearish with net selling of QR30.5 million against net buying of QR49.5 million in the previous week. Foreign retail investors also turned bearish with net selling of QR20 million against net buying of QR2.1 million in the previous week. Qatari institutions turned bullish with net buying of QR71.8 million against net selling of QR49.3 million in the previous week. Qatari retail investors, * however, remained bearish with net selling of QR21.2 million against net selling of QR2.4 million the week before. According to an estimate by QNB Financial Services (QNBFS), foreign institutions bought Qatari equities worth $34.7 million on a net basis since the beginning of this year. Masraf Al Rayan, QNB Group and Barwa Real Estate were the primary contributors to the weekly index gains. Masraf Al Rayan was the biggest contributor to the index s weekly increase, adding points to the index , , , , , ,691, ,870, ,258, ,564, , ,567, ,185, ,297, ,678, ,750, ,456, , ,329, ,993, , , ,162, ,676, ,938, ,971, , ,696, ,120, ,740, ,827, ,266, ,469, ,859, ,740, ,730, ,403, ,199, ,239, ,792, , , , , ,618, ,890, ,894, ,257, ,158, ,201, ,658, ,163, ,822, ,776, ,210, ,295, ,282, , , ,242 1,100,275 20, ,876 1,491,333 3,022,136 7,772, ,491 1,476,529 81, ,298 17,254,801 2, , , , , ,207 12,793 51,020 1,493,358 83,842 26, , , ,530 1,010,411 2,126, ,256 1,476,965 6,725, ,000 5,218 19,616 10,764 12, ,929 2,198,818 1,371, ,163 1,290,010 5,827, ,869 3,424,461 3,754,330 90, , , ,766 QNBK QNB QIBK CBQK DHBK ABQK QIIK MARK KCBK QFBQ (QFC) NLCS DBIS QOIS IHGS ZHCD QGMD SIIS MCGS QCFS QFLS WDAM MCCS MERS QIMD QNCD IQCD QIGD QEWS AHCS GISS MPHC IGRD QATI DOHI QGRI AKHI QISI UDCD BRES ERES MRDS ORDS Ooredoo VFQS QNNS Transportation GWCS QGTS Total Sec. Banks&Financial Services Consumer Goods&Services QNB was the second biggest contributor to the gains, contributing points to the index. Moreover, Barwa Real Estate added points to the index. On the other hand, Ooredoo deleted 9.84 points from the index. Qatar Islamic Insurance was the best performing stock for the week with a gain of 8.2 percent on 707,600 shares traded. On the other hand, Ezdan Holding was the worst performing stock for the week with a decline of 3.1 percent on 967,200 shares traded. Of the 45 listed companies, 29 ended the week higher. While 13 declined, there were no changes in share prices of the remaining three stocks. The week saw four of the seven sector indices close in the positive territory. The banking sector, which gained 3.31 percent, was the best performing index during the week. The insurance sector and the industrial sector, which gained 2.92 percent and 1.79 percent respectively, also played vital roles in lifting the main index higher. The week also witnessed both conventional and Islamic stocks make impressive gains. Industrials Real Estate Top 5 losers Top 5 shares by value Top 5 shares by volume Performance of GCC stock markets PERCENTAGE OF INVESTORS TRANSACTIONS

10 26 Sunday, February 18, 2018 Fitch raises Greece s debt rating AFP WASHINGTON REUTERS NEW YORK ADM, Syngenta settle lawsuit over biotech corn strain launch REUTERS CHICAGO US grain merchant Archer Daniels Midland Co has settled a lawsuit with Syngenta over the seed company s launch of a biotech corn strain that roiled grain exports to China, according to regulatory documents filed on Friday. DM sued Syngenta four years ago for selling the corn variety known as Agrisure Viptera or MIR 162 before it was approved for import by China, an importer on US grain. China rejected US corn cargoes that contained the unauthorized strain, which caused financial losses for ADM, according to the lawsuit. China ultimately approved imports of Viptera corn in ADM and Syngenta reached a confidential settlement over the matter in December, according to an annual report the grain handler filed with the US Securities and Exchange Commission. Cargill Inc, another major THE Fitch ratings agency on Friday upgraded Greece's sovereign debt grade, citing budget surpluses, greater political stability and the growing economy. The agency raised the debt rating one notch to 'B' from 'B-,' leaving the country in the "highly speculative" category but with a positive outlook. The decision followed a similar move last month by S&P Global Ratings, which said the long-suffering economy's improving fiscal situation was coinciding with growing employment. Long the "sick man of Europe," Greece is expected to face smoother sailing, with Eurozone finance ministers expected to sign off on the review of its performance under as its financial aid program, which runs through August The eurozone also is expected to provide "substantial debt relief" this year, Fitch said. "The concessional nature of Greece's public debt implies that debt servicing costs are low despite the high stock of public debt," Fitch said in announcing its decision. The agency noted that Greece saw three straight quarters of GDP growth for the first GE exploring sale of industrial gas engine business GENERAL Electric Co is exploring a sale of its industrial gas engine business that could be worth as much as $2 billion, according to people familiar with the matter. The move comes after Chief Executive Officer John Flannery, who took over as CEO last summer, indicated to analysts and investors for the first time last month that he was open to breaking up the company and said that a spinoff of any of its units, which include power, healthcare and aviation, was a possibility. Divesting the industrial gas engine business, which includes the Jenbacher and Waukesha engines, would help streamline GE s power division, whose profit plunged 45 percent last year as sales of power plants and services fell sharply. GE has hired Citigroup Inc (C.N) to prepare a sale process for the industrial gas business, the sources said on Friday. The sources asked not to be identified because the matter is confidential. A GE spokeswoman declined to comment, while a Citigroup spokesman did not immediately respond to a request for comment. The unit for sale makes multi-ton gas turbines that generate on-site power to keep industrial plants running. Jenbacher and Waukesha engines cover the small to mid-sized segment of GE s power business, ranging from 100 kilowatts to 10 megawatts. Flannery said last November that GE would exit at least $20 billion in operations, as it tries to shore up its financial performance. As part of this review, GE is exploring options for its transportation unit, which makes railway locomotives; its iconic lighting division, which makes bulbs for consumers; and its healthcare information technology business. The company s stock has lost half its value in the last 12 months and Flannery is under pressure from investors, including activist hedge fund Trian Fund Management LP which sits on its board of directors, to turn the business around. GE disclosed last month that the US Securities and Exchange Commission is investigating its accounting for part of its services backlog, and a set of actuarial calculations that caused GE to take a charge for long-termcare policies it underwrote a decade ago. GE took a $6.2 billion after-tax charge on those policies in the fourth quarter and said it will set aside $15 billion more in reserves over the next seven years to cover potential claims on the policies. Earlier this week, GE said it had reached a deal to sell parts of its overseas lighting business to a company controlled by former executive Joerg Bauer for an undisclosed amount. GE has hired Citigroup Inc to prepare a sale process for the industrial gas business, the sources said. grain handler, and US farmers also sued Syngenta. Last year, Syngenta, now owned by ChemChina, agreed to settle farmers lawsuits for close to $1.5 billion. The Cargill case is set for trial in September, according to Syngenta. Syngenta is continuing to defend against the claims of other exporters, and continues to believe that American farmers should have access to the latest US-approved technologies to help them increase their productivity and crop yield, spokesman Paul Minehart said in an . Growers also sued ADM over the matter, claiming the company was negligent in failing to screen for biotech corn. China s rejections of US shipments caused corn prices to plummet, according the farmers lawyers. ADM remains a defendant in court actions in Illinois, which the company has sought to dismiss, the SEC filing said. Economy & Business time in 11 years, causing per capita incomes to rise as well, while political risks have receded. Between 2015 and 2017, the government of Prime Minister Alexis Tsipras adopted painful measures under the bailout program and "we think it would be politically difficult for the same government to backtrack" once the program ends, Fitch said. Greece has also recorded rising budget surpluses and while the banking sector remains weak, banks have committed to plans to reduce their non-performing exposures by the end of next year, Fitch said. AFP WASHINGTON THE US Commerce Department on Friday recommended imposing heavy tariffs on China, Russia and other countries to counter a global glut in steel and aluminum which it says threatens national security. The move gives President Donald Trump the opportunity to strike a highly public blow for his "America first" trade policy, but raises the prospect of retaliation from countries targeted and was sure to stoke fears of a trade war. In two reports submitted to the president last month and made public on Friday, Commerce Secretary Wilbur Ross laid out an array of possible options, including a tariff of at least 24 percent on all steel imports worldwide, and a similar tariff on aluminum imports from China, Russia and three other countries. Other options would impose either high tariffs or quotas on steel and aluminum imports. Ross told reporters the principal question was whether cheap imports impaired US national security by making domestic production unviable. "I have determined that they do," he said. Ross said typical US trade actions against dumping and illegitimate subsidies had failed to address market oversupply, particularly by China, because "Serial offenders can evade these orders by transshipment through another country, with or without additional processing." Trump has until mid-april to decide what remedies to impose, if any, and Ross acknowledged that any US action is likely to be challenged by exporting nations in the World Trade Organization, Ross said. The recommended steel and aluminum sanctions address long-standing concerns about Chinese overproduction, but take the extraordinary tack of framing them in terms of national security and defense. The administration of former President Barack Obama also sought to tackle the subject but emphasized trade talks with China rather than punitive measures. US homebuilding soars in January; import prices jump REUTERS WASHINGTON US homebuilding rose to more than a one-year high in January, boosted by strong increases in the construction of both singleand multi-family housing units, and further gains are likely with building permits surging to their highest level since Other data on Friday showed a jump in import prices last month amid solid increases in the costs of petroleum and a range of other goods, bolstering expectations that inflation will accelerate this year. The bullish housing data suggested the economy remained on firmer footing at the start of the year despite weak retail sales and industrial production in January. "The economy is back on a winning path for stronger growth even if it is not firing on all cylinders with all sectors participating," said Chris Rupkey, chief economist at IMF s Lagarde warns on rate risk from US tax reform AFP PARIS IMF chief Christine Lagarde warned Saturday that economic stimulus from US tax cuts may lead to a rapid rise in interest rates which would weigh on countries with high debt levels. The International Monetary Fund was going to be "attentive" to the consequences of the reform, which notably includes a sharply lower corporate tax rate, she told French radio station France Inter. Lagarde's remarks echoed concerns in financial markets which have been in turmoil amid fears that rising US inflation will trigger faster And these proposals could hurt other countries more than China, which is the world's largest steel producer but provides less than one percent of US imports and sells only 10 percent of its wrought aluminum abroad. The report found 10 US steel furnaces have closed since 2000, causing a 35 percent drop in employment, while global excess steel capacity is seven times greater than US demand, largely due to China. And since 2013, six aluminum smelters have been shuttered as well, with only two of the remaining five operating at capacity. For steel, Ross recommended three possible options: a 24 percent tariff on all steel MUFG in New York. Housing starts jumped 9.7 percent to a seasonally adjusted annual rate of million units, the Commerce Department said. That was the highest level since October 2016 and followed an upwardly revised sales pace of million units. Economists polled by Reuters had forecast housing starts rising to a pace of million units last month after a previously reported rate of million units. Building permits surged 7.4 percent to a rate of million units in January, the highest level since June A tightening labor market is boosting demand for housing, but rising mortgage rates and house prices could slow the momentum. Despite the unemployment rate being at a 17-year low of 4.1 percent, annual wage growth has not exceeded 3 percent. In contrast, the annual house price increase topped 6 percent in November. The 30- Federal Reserve interest rate rises than had previously been expected. Several key stock markets lost around 10 percent last week in a brutal correction that Lagarde said in the interview had been "inevitable". She said the US tax reform "will operate like a kind of stimulus on the current economic situation" in the US which was already experiencing "strong" growth. "You have to ask yourself whether this will not result in rising wages, rising prices and therefore rising inflation and whether, consequently, there is a risk of a reaction by the monetary authorities, notably in the form of interest rates rising a from all countries; a 53 percent tariff on imports from 12 countries, including China, Russia and Brazil; or a quota on steel from all countries. For aluminum, he recommended either a 7.7 percent tariff on the metal from all countries; a quota for all countries; or 23.6 percent tariffs year fixed mortgage rate rose to an average of 4.38 percent this week, the highest level since April 2014, from 4.32 percent in the prior week, according to mortgage finance agency Freddie Mac. Mortgage rates are rising in tandem with US government bond yields on worries about rising inflation. The inflation concerns were little faster or a little more frequently," she said. This, in turn, would have "an impact on all of the world's economies, especially on heavily indebted economies", Lagarde said. "We believe that we must on imports of aluminum from China, Russia, Hong Kong, Vietnam and Venezuela. US industries have urged the administration to exercise care since high import tariffs would raise the cost of supplies. But Commerce said the goal of the measures was to boost domestic aluminum and steel production. Gary Clyde Hufbauer, a noted trade expert at the Peterson Institute for International Economics, said the steel report failed to address the costs to the US economy of higher steel prices which could rise by as much as 20 percent as a result of the trade sanctions. "GE, Caterpillar, Emerson, anybody who builds a bridge, they're all going to pay more underscored by a separate report from the Labour Department on Friday showing import prices jumping 1.0 percent in January after gaining 0.2 percent in December. In the 12 months through January, import prices rose 3.6 percent, the largest advance since April 2017, quickening from a 3.2 percent increase in the 12 months through December. While prices of imports from China were unchanged for a second straight month, they increased on a year-on-year basis for the first time since October "Going forward, we expect higher import prices to feed through to firming producer and consumer prices domestically," said Gregory Daco, chief U.S. economist at Oxford Economics in New York. Data this week showed an acceleration in consumer and producer prices in January, which boosted expectations inflation will rise this year and be attentive to what is going on, especially in the United States," Lagarde said. She rejected, however, any comparison with the economic situation preceding the 2008 financial crisis. "We are not at all in a premajor crisis situation like we were in 2008," she said. The US Congress in December approved a tax reform package that will slash corporate tax to 21 percent from 35 percent. Last month, the IMF said the reform would probably have a positive short-term impact on the US economy, and raised its growth forecast for the world's biggest economy this year by 0.6 percentage points to 2.5 percent. US eyes heavy tariffs on China, Russia over steel, aluminum glut Cheap imports impair national security by making domestic production unviable, says Commerce Secretary Wilbur Ross The move gives President Donald Trump the opportunity to strike a highly public blow for his America first trade policy, but raises the prospect of retaliation from countries targeted and was sure to stoke fears of a trade war. US industries have urged the administration to exercise care since high import tariffs would raise the cost of supplies. But Commerce Department said the goal of the measures was to boost domestic aluminum and steel production Stronger growth expectations The economy is back on a winning path for stronger growth even if it is not firing on all cylinders with all sectors participating, said Chris Rupkey, chief economist at MUFG in New York IMF Chief Christine Lagarde. money," Hufbauer told AFP, noting the proposals come as the White House is trying to spur a major renewal of US infrastructure. "There's no talk about that burden," he added. "You're going to have high-cost steel in this country relative to other countries." Hufbauer also said the Commerce Department used an broad definition of "national security" that included industries and products not traditionally considered crucial to defense, in order to justify the need for such steep tariffs on steel. "You're politically committed to the steel industry but you're doing it under color of national security and that's what I consider a hoax, really." potentially breach the Federal Reserve's 2 percent target. Inflation is expected to be driven by a tightening labor market, a weak dollar and fiscal stimulus in the form of a $1.5 trillion U.S. tax cut package and increased government spending. Higher inflation could prompt the Fed to be a bit more aggressive in raising interest rates this year than is currently anticipated. The US central bank has forecast three rate increases for this year, with the first hike expected in March. A survey from the University of Michigan on Friday showed consumers' inflation expectations unchanged in early February. The PHLX housing index was trading 0.6 percent higher on Friday, in line with a broadly firmer US stock market. Shares of DR Horton, the nation's largest homebuilder, rose 0.8 percent while those of Lennar Corp fell 0.2 percent.

11 2 Sunday, February 18, 2018 Job Required Chemical Engineer with 1 year experience in Oil & Gas and Petrochemical industry looking for suitable job opportunities. Available in Qatar with transferable RP. Sound knowledge of E&P sector, plant design, plant operations and HSE. Age 26 years. Can join immediately. Contact/Whatsapp: , : engineer.usmanmalik@yahoo.com NOTICE NAME: MR. BHUPENDRA BAHADUR BK BARIEL NEPAL PASSPORT NO: QATAR ID NO: The above said person is leaving Qatar for good. Anybody having any claim against him should submit the same to us within 3 days from the date of this notice. We will not be responsible for any claim whatsoever after this date. Sponsor Tel. : /25 NOTICE NAME: MR. RAJ KUMAR JAYASAWAL NEPAL PASSPORT NO: QATAR ID NO: The above said person is leaving Qatar for good. Anybody having any claim against him should submit the same to us within 3 days from the date of this notice. We will not be responsible for any claim whatsoever after this date. Sponsor Tel. : /25 Al Sadd - Economic Group Building next to Al Osmakh Mall Office No. 302 Mobile: Tel: toll free number: