UIC announces first half net profit of KD1.96m

UIC's profit during the second quarter of 2008 rose to KD1,434,526 an increase of 172% (KD907.719) comparing to the profit of KD526,807 for the first quarter of 2008.

UIC's share of income from associates increased by 496% (KD3m) to reach KD3,650,493 versus last year KD612,966 mainly due to increased share of profits from Qurain Petrochemical Industries Company and SADAFCO, in addition to improved operational results of Hempel paints due to better market conditions.

UIC's earnings per share in the first six months of 2008 reached 7.98 fils/share.

The value of UIC's total assets grew by KD73m to reach KD210.8m, a 53% increase on the KD137.8m for the same period of 2007. This growth is mainly due to increasing the stake in Qurain Petrochemical Industries Company and acquiring a significant stake in Al Atoun Steel Industries Company in Saudi Arabia. These investments are a positive reflex of UIC strategy through empowering the acquisition processes and starting new projects in line with UIC's strategic focus. Consequently, this will lead to increase future incomes and reduce the risks along with diversifying the company's activities and increasing its core investments. Finally the shareholders equity will be increased upon getting the positive results of these investments in the future.

The Chairman of UIC, Sheikh Khalifa Al Abdullah Al Jaber Al Sabah, commented:

"The management is executing a comprehensive strategic plan designed to define the Company's business directions and policies during the next five years. The new plan stems from focusing the Company's investment base on three major sectors, using three strategic thrusts, leading to a final goal of tripling the company's profits upon the completion of the plan."