Profits of United Fisheries Company of Kuwait decline
United Fisheries Company of Kuwait (UFK), part of Kuwait Projects Company (KIPCO), has posted net profit of KD 714,000 (US$ 2.4 million) or 4.68 fils (1.5 cents) per share for the 2004 third quarter, compared to KD 1.7 million (US$ 5.7 million) or 11.3 fils (3.8 cents) per share for the same period last year.
UFK chairman Amer Diab Al Tamimi attributed the dip in profit to the 2003 third quarter profit, which included one-off profits from sales of investments and assets, part of a comprehensive restructuring programme to strengthen the company’s leadership of local and international seafood markets.
Al Tamimi said strong results achieved by the company indicated the success of this growth strategy, incorporating upgraded performance with modern production systems. He said the on-going restructuring programme was evaluating all available options to select the best alternative for UFK’s future direction and interests.
UFK’s new high-tech Doha Plant, equipped with the latest processing technologies and production machinery, has begun to process the fishing catch of the company’s fleet. Shrimp is produced to the highest international quality standards in new attractive packets of various sizes, to satisfy the tastes of various customer segments. The plant will be a main income stream for UFK, and is pivotal to the company’s strategy of expanding packed products line production to maximise income.
He said UFK was expanding further into foreign markets with continued exports to Saudi Arabia, Lebanon, Jordan and Syria, alongside attempts to penetrate the Egyptian market in a strategy aimed at achieving consistent development of business and sales to optimise income and profits. Al Tamimi said the new fishing season began in August with UFK’s full fleet, and catches were expected to increase during the coming months with improved weather conditions.
He added UFK had advised shareholders of its subsidiary Saudi Dairy & Foodstuffs Company (SADAFCO) that the Board has entrusted Al Ahli Commmercial Bank with the role of advisor and manager for SADAFCOs listing on the Saudi Stock Exchange. Formalities for the listing, which will reflect favourably on UFK’s financial results and may generate short-term gains, are expected to be completed before the end of the year, he said.
UFK, a subsidiary of KIPCO’s United Industries Company (UIC), is a leading producer of high-quality seafood products and one of the top foodstuffs companies of Kuwait and the Arabian Gulf. The company operates its own fleet of fishing vessels, which supplies catches for processing at the new Doha plant in Kuwait. UFK’s range of shrimp and other fish products, is distributed throughout Kuwait and exported to other Arab countries.
KIPCO, with assets of more than US$ 10 billion under management or control, is one of the leading diversified holding companies in the Middle East and North Africa, and a major regional force in financial services and media & telecommunications, with further interests in real estate and industry. The largest private sector company in Kuwait, KIPCO employs more than 10,000 people internationally, and its shares are the most actively traded on the Kuwait Stock Exchange. (menareport.com)
© 2004 Mena Report (www.menareport.com)