Qatar Electricity & Water Co.

Qatar Electricity and Water Company is a Qatari public joint stock company established in 1990 in accordance with the provisions of the Qatari Commercial Companies Law, for the purpose of owning and managing power generation and water desalination stations and the sale of their products. Qatar Electricity and water company is one of the first private sector companies in the region engaged in the generation of electricity and desalination of water.

The share capital of the company at incorporation amounted to QR 1 Billion divided into one hundred million shares of QR 10 per share. Based on the decision of the Extraordinary General Meeting of February 25, 2014, ten million bonus shares were distributed to shareholders at the rate of one share for every ten shares held. With this, the capital of the company became QR 1.1 Billion representing one hundred and ten million fully paid shares. The Government of the State of Qatar and its affiliated institutions hold about 60% of the capital and individuals and private companies holds the remaining 40%. Based on the decision of the Extraordinary General Meeting of March 6, 2019, the nominal value of the share was changed to QR 1 instead of QR 10 per share and so the number of shares reached one billion and one hundred million. The company is managed by the Board of Directors consisting of eleven members headed by His Excellency Saad Bin Sherida Al-Kaabi, Minister of State for Energy Affairs.

Qatar Electricity and Water Company is one of the largest companies in the field of power generation and water desalination in North Africa and the Middle East region. QEWC is the main supplier of electricity and desalinated water in Qatar. The company has witnessed remarkable growth during the last decade in line with the steady growth of the economy of Qatar and the increase in population and the corresponding increase in demand for electricity and water. The total assets of the company amount to approximately QR 18 billion and the company and joint ventures together have capacity of 10,590 MW of electricity and 481.5 MIGD of Water.

It should be noted that the company won the awards for the best Arab company in the energy sector as well as the best Arab management team in the energy sector for 2017 in the second edition of the "Best Arab " award held in the city of Marrakech in the Kingdom of Morocco. This was in recognition of its performance and professional excellence in the field of electricity generation and water desalination. The company has also received numerous international awards from prestigious institutions, such as Rospa, in recognition of its achievements in safety and security.

Attractive Factors and Motivating Characteristics

QThe company is characterized by stability and low risk due to its investment in the infrastructure and utilities sector of Qatar. Company’s shares are stable, with the possibility of potential increase in market value, especially due to the noticeable improvements in the local economy and the completion of projects outside Qatar. The stable dividend distribution is also one of the positive contributing factors to make the company shares attractive. The most important factors contributing to company’s success are:

QEWC provides guaranteed flow of revenue through the Power and Water Purchase Agreements with Qatar General Electricity and Water Corporation (KAHRAMAA).

The company maintains long-term contracts for the supply of fuel to all plants based on the agreements signed with Qatar Petroleum, which ensures stability of the fuel cost, being the largest component of the variable operating cost. Qatar Petroleum is one among the primary and certified source to supply natural gas either in gaseous or liquefied gas form to many countries in the world. This ensures high reliability to the power and water plants of the company for the supply of gas and high thermal efficiency to meet international environmental standards.

The Company policy on distribution of dividends shows a gradual upward trend in line with annual profits and long-term plan for ten years, which is updated regularly.