On behalf of the Board of Directors, It is my pleasure to introduce the annual report for the financial year ending 31st December 2020, In the face of extraordinary market conditions. The report is outlining the Company’s operational results and achievements in more detail later in this report.
The strong foundation laid down during the early years supported UOP in withstanding the challenges posed by the year 2020. Through the diversified portfolio of investments, mixed revenue streams, and the innovative leadership of our experienced Management Team, UOP could circumvent the effect of the pandemic on the business operations.
In consideration of the above, I am delighted to report that your company was able to achieve remarkable profits during the year in review.
BUSINESS HIGHLIGHTS OF THE YEAR
Al Khorayef reported solid performance during the year, enabled by its strong market share and existing contracts within the Kuwaiti market, in addition to entering into a sizable long term contract with Kuwait Oil Company for “Supply, Installation and Maintenance of Electrical Submersible Pumps”. The Flag ship project GC-18, continues its excellent performance and secured a short-term renewal of the contract for a period of 2 years.
United Qmax Drilling Fluids (UQDF) demonstrated decent performance during the year, despite the limited resources and operational challenges it has faced due to the onset pandemic.
United Oil Projects along with its Principal M/s Corex UK Ltd, continues to demonstrate healthy performance along with Kuwait Oil Company, although slightly affected due to the Pandemic, Corex by the last quarter of the year was able to secure all the necessary requirements to complete its contract, making it well poised for growth in the upcoming year.
During 2020, UOP successfully managed to maintain its positive momentum and has achieved positive results which is evident in the financial performance of the Company despite the challenges that were faced during the year in review, and we remain optimistic in maintaining the steady growth in the upcoming years.
As of the year ending 2020, UOP reported net profits of KD 2.62 million, as compared to KD 0.92 million in 2019, mainly due to significantly better performance from its associates, Namely AlKhorayef. Net shareholders’ equity has maintained its growth momentum for the twelfth year in a row reflecting a net increase of 4% compared to the year before. Total assets also witnessed an increase by 4% to reach KD 30.15 million as compared to KD 28.99 million last year.
In view of the above and in line with UOP’s commitment to maximize its shareholders’ interests, I am pleased to announce the board’s recommendation to distribute cash dividends of 10% of the company’s paid-up capital, equivalent to 10 fils per share, subject to the approval of the general assembly and the related authorities.
To conclude, I would like to take this opportunity to express my sincere appreciation to our loyal shareholders and clients for their unrelenting trust in UOP. I also extend my gratitude to our management team, staff, and business associates for their commitment and contribution towards UOP during the past year. My deep appreciation and gratitude goes to my fellow directors for their support and guidance in UOP’s constant endeavor to achieve greater heights.
We also acknowledge with gratitude, the exemplary support provided by the Kuwait Government Bodies and Regulatory Authorities for the smooth functioning of our business operations during the pandemic period. In particular, to its petroleum arm, Kuwait Petroleum Corporation (KPC) group companies & affiliates, and the concerned regulatory authorities within the industrial sector.