EQUATE Petrochemical Company announces another record year in corporate earnings

"The Net Profit for the company in 2004 was US $ 620.5 million. This was an earnings record since its start up in 1997 and represents 126% more than earnings reported during the previous year," commented EQUATE President and CEO , Hamad Al-Terkait. The general assembly of EQUATE has approved a dividend distribution to the shareholders after allocating the required reserves.

"The year 2004 was a golden year for the company with elite all-around records," Al-Terkait disclosed. "Overall, company results were better than all previous years and exceeded 95% of goals set. Our stakeholders and employees are very proud of our accomplishments".

EQUATE's goals for the environment, health and safety were very stringent as the company aims to be the safest workplace in Kuwait. Similar to the past year, EQUATE met this target and crossed 5 Million continuous safe work hours without any lost workday cases. This record continued clearly into the present year and on March 16, 2005, the company crossed the 6 million safe work hours mark. This was possible by introducing several processes to enhance communications and safety awareness to follow safe behaviors while recognizing and mitigating risks. These processes include BBP (Behavior Based Process), pre-start work analysis card, access control system and electronic work permit, Public Addressing System, ESAT safety awareness flash messages, and many others. In 2004, EQUATE received ISO 14001 certification which is a credit for a big petrochemical complex to achieve in such a short span of operations.

Product prices in 2004 for all petrochemical products were impressive compared to last year. EQUATE's business teams have taken up more responsibility to drive for excellence in business results. EQUATE has met its customer's expectations in timely supply, quality of product, and uniqueness in service. On the other hand, EQUATE has delivered and honored its commitment at market price and collected its returns on time, enabling EQUATE to operate and function without disruption.

Al-Terkait commented, "Our people made it happen, and I am proud of them."

In line with EQUATE's vision, 2004 also marked a year of significant management initiatives for enhancing people's capabilities and preparing them for accepting more responsibilities as EQUATE is prepared for major expansion in the coming years. Nationals in the workforce has increased to 54.1% from previous year's 51.7%, which has been the highest record in the private sector in Kuwait. EQUATE has been duly recognized and rewarded by the Ministry of Social Affairs for having one of the strongest Kuwaitization programs in the private sector. This program exemplified EQUATE's efforts in adding value to society by providing opportunities to qualified Kuwaitis, demonstrated by EQUATE's to employment of the highest number of Kuwaitis in their workforce out of any private sector company in Kuwait.

EQUATE's shareholders have taken strong steps forward towards strengthening their strategic alliance and entering into new joint ventures. It will expand production by increasing the capacity and volumes which will bring more growth for the company. EQUATE has signed manufacturing, operations and maintenance contracts for all the new projects that are associated with Olefins II including Aromatics and Styrene. The company will be the 'single operator' for five petrochemical projects, including the existing Polypropylene and current operations. "This is a real translation of the confidence of EQUATE's people capabilities to handle additional tasks," said Al-Terkait.