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Kuwait EPC Investment Opportunity

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Kuwait is key OPEC Member and worlds third biggest oil exporter. Presently Oil and Gas Sector Opportunity from Kuwait is over 100 Billion. The Oil sector is under massive expansion. In this market there is fantastic investment opportunity.

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Kuwait EPC Investment Opportunity

  1. 1. Pearl of Kuwait Growing Together an Investment Opportunity
  2. 2. Opportunity • Opportunity to Invest in Kuwaiti Electromechanical (E.P.C.)Contracting Company.
  3. 3. The Company • The Electrometrical Contracting Company recognized with KOC, KNPC, CTC, etc • 12 Years of working experience with Oil, Gas and Power Sector. • Continuously making profit • Very good order book. • Very good future winning positions. • Large and established work force.
  4. 4. Order Book • Existing Work Order More than 7 million KD. • Winning Positions 10 million KD. • Bidding Positions 25 million KD. • Future Opportunities… Development Plan and Existing Maintenance Work.
  5. 5. The Opportunity • The new development plan has 110 billion USD investment. • Clean fuel project worth 16 billion USD is under implementation. • New Refinery worth 15 billion USD will be executed. • Up gradation of existing facilities will have significant market opportunity. • Apart from this regular maintenance will be there. • KPC announced a $100-billion capital spending plan over five years encompassing both the upstream and the downstream sectors. The Clean Fuels Project (CFP) will upgrade Kuwait's existing refineries. The planned overhaul of Kuwait's refining sector includes building a new al-Zour refinery, shutting down the al-Shuaiba refinery, and retiring old units and installing new components at the remaining refineries.
  6. 6. The Opportunity • Kuwait is also expanding its gas processing infrastructure to meet rising domestic demand. Daelim of South Korea is currently constructing Kuwait's fourth and largest gas processing plant with 800 MMcf/d of capacity. • Kuwait is in the planning stages to bring on an additional power plant, Al-Zour North, with a generating capacity of 1.5 GW by 2015 and plans to nearly double its generation capacity by 2017 in an effort to meet an anticipated peak demand of 25 GW by 2025. • Five other power plants, including al-Zour North, are in various stages of development to achieve the forecast capacity and bring an adequate buffer between peak demand and generation capacity.
  7. 7. Market Size JO KOC KNPC MEW Total Time Existing Tanks - needs Repair No's 122 200 200 120 642 2014-2018 New Tanks No's 30 75 60 50 215 2014-2020 New Tanks KD 30,000,000 75,000,000 50,000,000 4,500,000 159,500,000 2014-2018 Tank Repair and Maintenance KD 30,000,000 55,000,000 40,000,000 25,000,000 150,000,000 2014-2018 Blasting and Painting KD 10,000,000 30,000,000 20,000,000 15,000,000 75,000,000 2014-2020 Mechanical Work 25,000,000 45,000,000 60,000,000 5,000,000 135,000,000 2014-2018 Manpower Supply /Tenders - - - - 12,000,000 2014-2020 Other Work 2,000,000 15,000,000 12,000,000 2,000,000 31,000,000 2014-2018 Other Infrastructure Sector - - - - 15,000,000 2014-2020 Total 97,000,000 220,000,000 182,000,000 51,500,000 577,500,000 562500000 Annual Work 2014 2015 2016 2017 2018 Total JO/PNG 19,400,000 19,400,000 19,400,000 19,400,000 19,400,000 97,000,000 KOC 44,000,000 44,000,000 44,000,000 44,000,000 44,000,000 220,000,000 KNPC 36,400,000 36,400,000 36,400,000 36,400,000 36,400,000 182,000,000 MEW 10,300,000 10,300,000 10,300,000 10,300,000 10,300,000 51,500,000 Manpower 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000 12,000,000 Other 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 15,000,000 Total 115,500,000 115,500,000 115,500,000 115,500,000 115,500,000 577,500,000
  8. 8. Financials Particulars 2013 2014 2015 2016 2017 2018 2019 Income from operations 2,122,314 2,250,000 2,925,000 3,802,500 4,943,250 6,426,225 8,354,093 Cost of Operations 1,363,561 1,417,500 1,813,500 2,319,525 2,965,950 3,855,735 5,012,456 Gross of Profit 758,753 832,500 1,111,500 1,482,975 1,977,300 2,570,490 3,341,637 Total Expenses 593,861 613,089 724,404 757,069 821,693 888,394 927,298 Operating (Losses)/Profit 164,892 219,411 387,096 725,906 1,155,607 1,682,096 2,414,339 Net Profit for the year 102,526 187,815 320,705 601,995 988,753 1,436,074 2,112,013 Cost of Financing 69,444 31,596 66,391 123,911 166,855 246,022 302,326
  9. 9. Comparables Comparable KCPC CG Average Price / Book Value 1.12 3.39 2.255 P / E 11.38 29.12 20.25 Current Ratio 1.11 1.38 Debt Equity Ratio 1.34 3.81 Return on Assets 4.20% 2.42% 3.31 Return on Equity 9.85% 11.65% 10.75
  10. 10. Coming RFP Work Plan Project List Project Title Contract Value approx. KWD Remark 1 Construction of New Gathering Centre (GC-31) at North Kuwait 228.1 MN 2 Effluent Water Treatment & Injection Plant 267.4 MN 3 Construction of New Gathering Centre (GC-29) 194.2 MN 4 Construction of New Gathering Centre (GC-30) a 239.6 MN 6 JGC Corporation (Japan)/SK Engineering & Construction 1.36.Bn 7 Fluor (US)/Hyundai Heavy Industries/Daewoo Engineering & 962 Mn 8 Consortium, GDF 505 Mn All Project awarded 5 Petrofac (UK)/Samsung Engineering (South Korea)/CB & Netherland - Petrofac - MAB 1 – 1.07.Bn
  11. 11. Dr. Zia Ahmed Venture Art Advisors Zia@milestonevision.com CUSTOMIZED SOLUTION TO CUSTOMERS SATISFACTION ETHICAL TRANSPARENT SUSTAINABLE

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