Dear Shareholders,
On behalf of the Board of Directors, I am pleased to present the annual report for the financial year ending December 31st, 2024.
DRIVING GROWTH
In 2024, UOP demonstrated remarkable resilience and delivered a robust performance despite a challenging regional economic environment shaped by significant macroeconomic pressures and geopolitical tensions impacting global supply chains. Our committed team strategically navigated these complexities, achieving notable milestones and laying a strong foundation for sustained growth in an ever-evolving market. This report highlights our key accomplishments and strategic advancements throughout the year.
UOP's Year of Success
UOP made significant strides across its operations in 2024, reinforcing its position as a competent player in the industry:
United Precision Drilling Company (UPDC): UPDC is poised for a strong operational year, with projections of 12 active rigs in the country in 2025, reflecting our commitment to expanding our drilling capabilities.
United Qmax Drilling Fluids Company (UQDF): Through a strategic acquisition, UOP acquired the remaining shares in UQDF, making it a wholly owned subsidiary and strengthening our position over this segment.
JTC Logistics Transportation & Stevedoring Co. K.S.C.P.: UOP strategically expanded its investment portfolio by increasing its ownership in JTC to 21.2%, further diversifying our investment footprint.
The Chemical Division (KCMC): The Chemical Division achieved a significant increase in sales and maximized its productivity through effective operational optimization.
FINANCIAL STRENGTH AND GROWTH
UOP maintained a positive financial trajectory throughout 2024, demonstrating notable resilience in the face of economic challenges. We are confident in our ability to continue this steady expansion in the years ahead.
Increased Profitability: UOP’s net profit for the fiscal year ending 2024 reached KD 7.41 million, representing a substantial increase of 185.5% compared to the previous year. This increase is primarily attributed to the gain on acquiring the remaining 49% of United Q’max Drilling Fluids Company, which contributed 35.2% of the net profit.
Strong Equity and Assets: Shareholders’ equity increased by 19% to KD 36.22 million, and total assets rose by 24% to KD 39.80 million, reflecting strong performance in 2024 and growth in retained earnings despite dividend payouts.
VALUE FOR OUR SHAREHOLDERS
Consistent with UOP’s core principle of maximizing shareholder value, the Board has recommended a cash dividend of 20% of the company’s paid-up capital, which equates to 20 fils per share. This recommendation is subject to the approval process by the general assembly and relevant authorities.
UOP’s dedication to our shareholders remains strong, focused on generating long-term value. By strategically pursuing key initiatives, we are confident in our capacity to achieve sustainable growth and optimize shareholder returns in the future.
GRATITUDE AND APPRECIATION
Thank you to our shareholders, customers, and partners for their sustained trust and support and our Executive Management team for their excellent work in overcoming challenges. Their commitment is crucial to UOP’s ongoing progress. I further extend my appreciation to the Board of Directors for their steadfast support in realizing our vision for a prosperous future. Finally, we acknowledge the valuable support of the Government Regulatory authorities during this demanding year.
Sincerely
Sabah Mohammad Al Sabah
Chairman
