JTC in the process of completing one of the prerequisites for listing on Boursa Kuwait

• Kohari: Our core business segments are recovering as transportation restrictions are eased by the government and the economy shifts to a path towards normalcy

Kuwait: - Jassim Transport & Stevedoring Co. K.S.C.C. (JTC), a leading provider of ports and contracts logistics services as well as heavy equipment and power leasing in Kuwait and the GCC, announced today that it is in the process of completing the private placement to increase its shareholders’ base.

Increasing shareholders base is one of the prerequisites for listing on Boursa Kuwait. Following the preliminary regulatory approval from the Capital Markets Authority, the JTC commenced the private placement mid-June.

CEO of JTC Adel Kohari said: “The company is proceeding with its strategy to list its shares on the Boursa Kuwait. In addition to the private placement, we are carrying out several internal procedures that will improve the level of transparency, provide the necessary training for employees to deal with the company's new strategy and other matters that contribute to the company's readiness for listing.”

He added, “So far this year, the performance and achievements have been very satisfactory on both the financial and operational levels. We have won new contracts, commenced new projects and implemented new businesses.”

Since the beginning of the year, the Company initiated the execution of a new 3-year logistics contract with Kuwait’s Ministry of Electricity & Water, in addition to signing new long-term strategic contracts with several oilfield services companies for power rental services in KOC oilfields. These contracts are expected to drive revenue growth over the next 7 years.

Furthermore, the Company commenced aggregate cargo handling services at Shuaiba port and started construction of a new temperature-controlled warehouse at Mina Abdullah. This warehouse is expected to start operating early 2022, with plans to develop similar warehouses in the upcoming years.

Incorporated in 1979, JTC operates through its subsidiaries across three business segments: Contract Logistics & Ports Management, Equipment Leasing, and Power Rental. Over the years, the Company established itself as a leading service provider supporting various oil & gas and infrastructure projects in Kuwait, Qatar and Saudi Arabia.

Kohari concluded, “We are pleased with the performance of our diversified portfolio of services with operations extending throughout the region. Despite the market challenges we are still experiencing and the repercussions from the disruptions in economic activity, we continue to focus on our execution capabilities to overcome these obstacles and enhance our operational efficiency. Our core business segments are recovering as transportation restrictions are eased by the government and the economy shifts to a path towards normalcy.”

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.

It is worth noting that JTC has consistently distributed cash dividends year-over-year, totaling over KWD 28.7 million in payouts during the last five years (191 fils per share), while maintaining a healthy and debt-free balance sheet. Excluding the COVID-induced challenges in 2020, the company has shown impressive top-line and bottom-line growth, with growth CAGRs of 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 made cash distribution of 20 fils per share. 

-Ends-

© Press Release 2021