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Kuwait: Company posts KD 50m in revenue

MTCC aims to up capital to KD 6 mn
KUWAIT CITY: The general assembly of Mushrif Trading and Contracting Company (MTCC) Tuesday approved a proposal to increase the capital of the company from KD 3 million to six million dinars with each share carrying a face value of 100 fils. The company also announced a revenue of KD 50.92 million in 2006.

Quality
Addressing MTCC 's First Business Forum Commercial Director of the company Rudi Fourie said " MTCC is specialized in high quality contracting with expertise in design and build services to many key sectors of the construction industry in Kuwait and other countries." Mushrif Company 's areas of expertise include construction of wastewater treatment plants, installation of oil and gas pipelines, construction of pumping stations, highways, roads, airports, runways besides other infrastructure works, environment and industrial projects, he added. Rudi also said "currently MTCC is implementing projects in many countries - including Bahrain, Iran, Iraq, Qatar, Saudi Arabia, and the United Arab Emirates."

Referring to the company's operations in Kuwait, he said "currently we have projects to the tune of KD 168 million in Kuwait. We are implementing a project worth for the US Army Corps of Engineers, a project valued at 57 million dinars for the Ministry of Public Works for the construction of a new scrap yard in Jahra besides a project worth KD 16 million for the Petrochemical Industries Company ."

He went on to say MTCC has implemented projects worth KD 73 million in UAE and KD 36 million in Qatar, adding "in the United Arab Emirates we have completed central market project for Al-Dar Properties PJSC . Currently we are implementing a project for Joint Operations in Khafji, Saudi Arabia."

Indicating MTCC has signed a contract for a project with the Iranian government, Rudi said "in 2006 our company achieved remarkable expansion in the region through its branches and subsidiary company. This was in addition to expansion in specialized segments of Marina Construction, piling and foundation works, electro-mechanical and oil and gas division." As a Grade 1 contractor, MTCC is eligible to participate in major projects such as Bubiyan Port, Failaka Island, Subiya City and Causeway, Rudi said.

Director of Finance at MTCC Nadeem Nazir said although the company's revenue in 2006 was around KD 50.92 million the net profit was only KD 544, 453. He described the company's performance in 2006 as 'unusual', saying "the decline in our profitability was due to one-off investments, acquisitions and expansion costs for the future corresponding to an EPS of 17.68 fils."

"The revenues witnessed a compounded annual growth rate (CAGR) of 28 per cent over the past five years mostly attained from projects in Kuwait," Nazir said. "On the other hand, the company's total assets, which are currently worth KD 59.17 million, have been growing at a CAGR of 33.5 per cent over the past five years in line with the growth of our business."

Claiming the company's revenue for the first quarter of the current financial year 2007 has crossed 18.5 million dinars, he said "this is 105 per cent more than our revenue during the corresponding period of 2006." The total order book value expected was KD 278 million and a turnover of KD 100 million which is double that of the revenues for 2006."

Deputy General Manager for Financial Services and Investment Division at KIPCO Asset Management Company KAMCO, MTCC "S financial advisor, Anthony Kyprianou said "the capital of MTCC has been increased to support its expansion plans across the region, especially in Dubai."

He also said Ithmar Capital, a foreign investor, will fully subscribe the increase in capital at a price of 900 fils per share, he said "while the face value of the share will be 100 fils Ithmar Capital will pay a premium of 800 fils per share. The total proceeds of the capital increase will be KD 27 million out of which KD 16.5 million will be used to purchase a major construction company in the UAE."

"Ithmar, which recently formed a strategic alliance with 3i a leading investment company in private equity and venture capital, is bringing in capital at a reasonable price, business expertise and additional contracts to Mushrif Company ," he said. "This alliance is expected to introduce contracts worth 1 billion dollars in the next three years."

Footprint
Deputy Chairman Mohsen Khada Dahkani said "the company's shares performed incredibly well throughout the second half of 2006. MTCC 's capital is being increased to increase its footprint." We can repay our debts resulting from acquisitions and expansions at anytime along while maintaining our growth, he added. " MTCC has been implementing projects in Iraq since 2003, mainly for the US Army Corps of Engineers," Dahkani said.

© Arab Times 2007