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Kuwait:- Jassim Transport & Stevedoring Co. (JTC), a leading provider of ports and contracts logistics services as well as heavy equipment and power leasing in Kuwait and the GCC, held a press conference today regarding the Company’s official listing on Boursa Kuwait scheduled on Sunday, 17 October 2021. The listing comes after successfully completing the private placement process and obtaining all the necessary regulatory approvals.
The press conference was inaugurated by the Chairman of the Board of Directors, Sheikh Ali Fawaz Al-Sabah, who provided a brief overview on the Company’s history and growth journey. JTC was established in 1979 as an inland transportation company, since then the Company built a diversified and proven business model, offering Contract Logistics, Equipment Leasing, Power Rental, and Ports Management Services.
He added, “Over the past forty two years, the Company managed to achieve a successful track record of accomplishments within its core operational segments supported by an ever-growing business strategy. This in return has positioned JTC as a leader in its field, enabling the Company to overcome most of the challenges faced in the industry, especially those recently witnessed globally.”
Adel Kohari, Chief Executive Officer of JTC, presented an in-depth overview of the Company’s various business functions. These consist of core services tailored to enhance the project implementation process, making it more efficient, reliable, and flexible. The Company also offers full-fledged services to various sectors such as oil & gas, infrastructure, and construction, which includes logistical solutions in addition to equipment leasing and power rental services.
Contract Logistics & Ports Management
Contract Logistics and Port Management is JTC’s primary services and account for more than 50% of the Company’s revenue. Introduced during the time of incorporation in 1979, Contract logistics is the first business line offered under the Company’s portfolio. Today, JTC’s contract logistics business offers one of the leading solutions in Kuwait’s transportation and storage industry with more than 300+ assets of various categories. The contract logistics services cover general transportation which includes a high-quality and well-maintained fleet that focuses on timely deliveries, supplemented by a strategic focus on the transportation of construction materials and effluent water. The company also provides fuel transportation services, specializing in transporting various petroleum grades. Additionally, the Company offers a state-of-the-art warehousing facility in Mina Abdullah with open and covered storage services. A key development under JTC’s strategy for the coming years is to construct new temperature-controlled warehouses in the Company’s Mina Abdullah facility. The first of these warehouses is currently under construction, with more to follow once it is operational.
As for the ports management services, the Company began offering its services in 1986, after being awarded a stevedoring license from Kuwait Ports Authority to operate at Shuwaikh Port. The offering line was expanded within this segment to serve as a one-stop service for various types of cargo, with operations running around the clock for stevedoring, handling, transportation, storage, customs clearance, and value-added services.
Equipment Leasing
JTC started providing equipment leasing services in 1983 and is considered today a leading provider of lifting solutions in Kuwait with operations running in Qatar as well. The Company's fleet is comprised of cranes, specialized heavy-lift transportation equipment, material handling equipment, and other industrial equipment that can be used in oil and gas plants, industrial facilities, and other similar applications.
Power Rental
On-demand power rental solutions are offered by JTC in both Kuwait and Saudi Arabia. These solutions include multi-megawatt projects and reliable power supply for oil and gas facilities, as well as other requirements. JTC offers more than 600 diesel generators units with a power capacity of 220,000+ KVA. The Company also owns a fleet of support and ancillary equipment such as fuel tanks, distribution panels, synchronizing panels, isolation panels, manual/automatic transformer switches, and cables.
JTC’s fleet and capabilities saw a significant expansion in the past few years, which has enabled the Company to strengthen its offerings throughout its target markets.
In terms of contracts, the Company initiated the execution of a new 3-year logistic contract earlier this year with the Ministry of Water and Electricity in Kuwait. This comes in addition to signing new long-term strategic contracts for power rental services with several parties operating in the KOC fields. These contracts are expected to drive revenue growth over the next seven years. Moreover, the Company commenced aggregate cargo handling services at Shuaiba port in July 2021.
Abdullah Al-Sharekh, Managing Director of Markets and Investment Banking at Kamco Invest, said, "We congratulate JTC on its successful private placement process and readiness to list on Boursa Kuwait. The listing is a qualitative leap in the Company's history that will enhance its competitive position within the markets it operates in. On behalf of the Investment Banking team, I would like to thank JTC’s shareholders and management for their confidence in Kamco Invest, as well as the regulatory authorities for their constructive cooperation in ensuring the success of this listing.”
Al-Sharekh concluded, "The recovery of the stock market is one of the most important factors that contribute to revitalizing the IPO and listing market, not only through performance, but through high trading volumes and liquidity. This will ultimately contribute towards urging companies to list and facilitate the process of attracting new capital, whether local or foreign. Listing successful companies will contribute to enriching the stock market, and therefore we urge family companies to consider pursuing the listing route. This will be especially beneficial to those that have developed a mature decision-making process and appointed non-family board members, separating between ownership and management, and thus they are structurally ready to become public shareholding companies.”
It is worth noting that JTC has historically performed well in the past, achieving profits and maintaining a track record of consistently distributed dividends year-over-year, totaling over KWD 28.7 million in payouts during the last five years (191 fils per share), while maintain a healthy balance sheet. The Company has shown impressive top-line and bottom-line growth, growing by 7.7% and 14.6%, respectively, during the period from 2014-’19. Furthermore, and despite the pandemic, the Company was resilient and reported net profit of KWD 4.1 million during 2020 and distributed a cash dividend of 20 fils per share.
JTC enjoys a strong balance sheet with total assets of KWD 52.7 million as of 30 June 2021, shareholders’ equity of KWD 41.6 million and a debt-to-equity ratio of approximately 0.1x.
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© Press Release 2021
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