Activities of the United Oil Projects Company (UOP) include the production of chemical materials – through the company’s industrial sector – and drilling oil wells – through its subsidiary, United Precision Drilling Company (UPDC), in which UOP holds a 47.5% stake, in addition to the sale and maintenance of oil drilling equipment – through its subsidiary, Al Khorayef Company for Sale, Maintenance and Repair of Oil Production Equipment, in which UOP holds a 25% stake.
The company’s management succeeded in winning a special tender for the GC 16 project with Kuwait Oil Company, through Al Khorayef Company – one of UOP’s investments – and in collaboration with Al- Qurain Petrochemical Industries Company – UOP’s main shareholder. The project is worth approximately KD 87.6 million and includes the construction, operation and maintenance of an early production plant for a period of seven years. The project is expected to significantly increase the profit of the subsidiary, which would reflect positively on the company’s future results.
The company increased its production of specialized material in 2010, underlining the stability of its financial position and the continuous improvement of its production activities in view of the current economic challenges; whether in the oil and gas sector or in the economy in general . The company also succeeded in finding a cost effective alternatives to several raw materials used in the production processes of resins that are mainly used in the paint industry – which was imported at a high cost – and introduced them in the local market at competitive prices. These efforts proved fruitful and reflected positively on the company’s financial results, increasing total profit by 34%, as seen in the financial statements of the company.
The company maintained a stable financial performance throughout the year, recording net profit of KD 327,548 compared to KD 333,747 for the previous year. The management aspires to double efforts in the near future to achieve better results, provided positive developments are seen in the market.
The company’s total investment in associates during the year is KD 414,000.