DEAR SHAREHOLDERS,

On behalf of my fellow Directors on the board, I am pleased to present to you the annual report of United Oil Projects company (UOP) for the financial year ended 31st December 2021, outlining the company’s financial and operational results to achieve the positive outcome and overcome the witnessed challenges during the year.
 
UOP maintained the positive momentum in its performance, despite the witnessed challenges that has erupted from the onset Covid-19 pandemic and various economic difficulties during the past two years. Pandemic continued to affect global and regional economy and imposed restrictions on global movement, which created a disturbance in the global markets due to scarcity and high prices, as a result of the disruption of the supply chain. Meanwhile, the early indicators of Year 2022 which began by easing restrictions and gradually returning of economic activities, enabled the company and the local market as a whole to return to full gear.
 
UOP, with its proactive vision, was able to counter the witnessed challenges and further improve its performance through increasing the sales of targeted products within the chemical division in the local market.
 
Throughout the year, UOP’s group companies have established their footprint in the market, via demonstrating their capability in the oil sector, by overcoming these challenges and turning them into distinguished achievements and positive results, and hence look forward to grow in leaps & bounds in Year 2022.
 
BUSINESS HIGHLIGHTS OF THE YEAR
  • United Precision Drilling Company (UPDC) maintained delivering its premium services to Oil sector, with its well-established HSE & operational standards that are catered to meet the challenges of the client during the year.
  • Al-Khorayef Company for Sale Maintenance & Repair of Oil Production Equipment (AKC) continued its excellent performance in operation long-term contract related to Electrical submersible Pumps and continued its excellent performance in operation and maintenance of GC-18 and successfully completed the maintenance within the stipulated time. During the year AKC secured new long-term contracts, related to Electrical submersible Pumps and Gas Compression project with Joint Operations.
  • United Qmax Drilling Fluids (UQDF) continues to deliver high and distinguished performance to Kuwait Oil Company. In the current year, UQDF received excellent service level rating among all other service providers. UQDF also looks forward to strengthen its presence and increase its market share in the upcoming years.
FINANCIAL OUTCOME
During 2021, UOP successfully managed to maintain its positive momentum and has achieved the positive results despite the challenges that were faced during the year, and we remain optimistic in maintaining the steady growth in the upcoming years.
 
UOP achieved net profits amounting to KD 2.03 million for the year ended 31st December 2021, as compared to KD 2.62 million for the year. The decrease in results mainly attribute to the lower income from associate companies.
 
Shareholders’ equity for the same period amounted to KD 28.2 million, recording minor decrease due to drop in market value of the investments in shares; however, this was partially offset with the share of profit from investments in Joint Ventures and Associates. Total assets slightly declined by 1.2% to be KD 29.8 million as compared to KD 30.15 million in 2020.
 
In view of the above and in line with UOP’s commitment to maximize its shareholders interests, I am pleased to announce the board recommendation, to distribute cash dividends of 12 per cent of the company’s paid-up capital, equivalent to 12 fils per share, subject to the approval of the general assembly and the related authorities.
 
As the current term of the Board of Directors is coming to an end, I would like to take this opportunity to express my sincere appreciation to our shareholders, customers, and partners for their trust and support. I would like to extend the same to my fellow brothers, members of the board and the Executive Management for transforming the challenges witnessed throughout the year into opportunities and achieve our strategic goals towards providing a better future for the company.
 
It is also my privilege to extend sincere gratefulness to the Government of Kuwait, its competent Authorities, and Petroleum arm in particular, the Kuwait Petroleum Corporation group companies. UOP acknowledges the same gratitude to the relevant Regulatory authorities who have contributed and supported the Industrial Sector of Kuwait and maintained its distinguished position during this challenging year.
 
We hope the path of success that we started is continued by UOP and achieve a better future in the years ahead.
 
Sincerely,
 
Sadoun A. Ali
Chairman

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Plot 4, Street 7, Block 47, West Shuaiba Industrial Area, Mina Abdullah Industrial Area - Kuwait
Postal Address : 26011 Safat , 13121 Kuwait
(+965) 23263297
(+965) 23260179
info@uopkt.com