KIPCO's United Industries reports KD 1.023 million

Sheikh Khalifa said the improvement was due to development in the performance of associate and subsidiary companies, together with disposal of assets and investments incompatible with the company's current restructuring plan.

UIC is an affiliate of Kipco Asset Management (KAMCO), a subsidiary of United Gulf Bank (UGB), KIPCO's investment banking arm and subsidiary. KIPCO is one of Kuwait's and the Arab world's leading business enterprises and UIC is the holding company for KIPCO's investments in the manufacturing and industrial sectors.

Sheikh Khalifa said UIC's management was pressing ahead with completing the restructuring plan, with work underway to assess activities enabling management to decide directions to keep pace with the goals and ambitions of the Board of Directors and Shareholders.

Steps have already been taken to sell 25 million shares, the equivalent of 50%, of Raad Stores, to shareholders in the United Fisheries of Kuwait (UFK), and other parties that have shown interest. The sale resulted in revenues from UFK of KD 4,125,000 (US$ 14,025,000) generating profits of KD 506,000. (US$ 1,720,400). Raad Company is also proceeding with a comprehensive restructuring to modernise and develop its facilities.

Sadafco achieved a remarkable improvement its performance during the period, with net profits amounting to KD 5.689 million (US$ 19.342 million).

Commenting on future projects, Sheikh Khalifa said co-ordination and co-operation were underway with the management of Industrial Bank of Kuwait to explore investment opportunities in the oil and petrochemical sectors. He expected this to result in projects in these sectors to be implemented, once proved viable.

Sheikh Khalifa added that Kuwait Chemical Manufacturing Company was currently exploring prospects of horizontal expansion through ownership of holdings in businesses compatible with UIC's nature of operations, with the aim of developing performance and growth of the Company through alliances with leading international specialised firms.

In conclusion, Sheikh Khalifa said Gulf Industrial Investment Fund (GIIF) was considered a vital project for UIC. The company, on finalising all relevant measures for the GIIF launch, is seeking to negotiate with specialised and leading organisations to forge cooperations. Negotiations are hoped be completed by the end of this year, or early next year.