On behalf of my fellow Directors, it’s my privilege to present the annual report for the financial year ending 31st December 2018, outlining the results and accomplishments.
The United Oil Projects (UOP) Company has enjoyed a rich record of achievements and successes over the past years, which has enabled it to overcome the exceptional obstacles
experienced during the year in review and achieve overall positive performance results.
The company focused during the year on increasing the efficiency of its operations, enhance its investment opportunities and exploiting the opportunities within its flexible strategy to support its future growth and progress.
BUSINESS HIGHLIGHTS OF THE YEAR
UOP was awarded two major contracts during the year, together valued at more than USD 140 Million by State owned company, Kuwait Oil Company (KOC), for Provision of Mud Products & Mud Engineering Services for Deep & Development Drilling in Joint Venture with our new Canadian partner, Qmax Solutions Inc. for a period of 5 years.
During the year, United Precision Drilling Company has successfully renewed its contract with KOC, for its existing 4 rigs and over a period of 5 years.
Al-Khorayef Company for Sale Maintenance & Repair of Oil Production Equipment (AKC): Despite the witnessed challenges that AKC faced during the year owing to tough
market conditions, It managed to overcome the situation. It was also supported by being awarded a contract for installation of new desalter trains at various Gathering Centers over a period of 2 years with a projects is value of approx. USD 260 Million.
UOP has participated in another major tender for provision of Rock Fluid Properties, along with its partner Corex (UK) Ltd.; and are currently awaiting the tender results.
The Chemical Division successfully launched two new green and profitable projects. The first, is the development of a range of valuable industrial resins from recycled material. The second is designing a new product packaging that rationalized the costs effectively and thereby improved our profitability margins. Both are now commercially proven.
From a financial performance perspective, overall, United Oil Projects has posted positive results, despite the exceptional challenges that were faced during the year. This has reflected positively on the financial performance and other key performance indicators in 2018, and we expect
the positive growth momentum to improve further in the upcoming years.
As of the year ending 2018, United Oil Projects reported a net profit of KD 1.26 million, as compared to KD 2.43 million in 2017, this is mainly due to exceptional challenges that faced the company during the year in review. Nonetheless, Net shareholders’ equity has maintained its growth for the 10th year in a row reflecting a net increase in of 9% compared to the year before. Total assets also increased by 9% to reach KD 27.16 million as compared to KD 24.99 million in 2017.
In view of the above and in line with UOP’s commitment to maximize its shareholders interests, I am pleased to announce the recommendation of the board, to distribute cash dividends of 8 per cent of the company’s paid-up capital, equivalent to 8 fils per share, subject to the approval of the general assembly and the related authorities.
Concluding, I would like to take this opportunity to express my deepest appreciation to our loyal shareholders and clients for their support. I would also like to extend my thanks and gratitude to our management team, staff, and business associates for their commitment and contribution towards UOP during the past year in achieving those results. Last but not least, I would like to extend my gratitude to my fellow directors for their guidance in helping to position UOP where it stands today.
We also acknowledge with gratitude, the relentless support provided by all the Government bodies of Kuwait, In particular its petroleum arm, Kuwait Petroleum Corporation (KPC), its subsidiaries and affiliate companies, and the concerned regulatory authorities within the industrial sector.