- The Kuwait Aromatics Company (KARO) achieved net profit of 41 million K.D at the end of the F.Y 2019,which is equivalent to 110% of the approved annual budget., The Kuwait Paraxylene Production Company (KPPC) achieved profits amounting to 23 million Kuwaiti dinars, equivalent to 174% of the approved annual budget. The Kuwait Styrene Company (TKSC) achieved at the end of the F.Y 2019/20 profits amounting to 30 million K.D, equivalent to 72% of the approved annual budget.
- In line with the company’s 2040 strategy, polypropylene plant was officially handed over to PIC by EQUATE on January 1, 2020, EQUATE was operating the plant since commissioning.
- In support of the local economy, the company is making continuous efforts to enhance the participation of the local private sector in petrochemical projects, the company has signed two memoranda of understanding with the Kuwait Industrial Projects Company and the Metal and Recycling Industries Company, for cooperation in their downstream projects. This is the result of continuous efforts to implement the KPC strategy to enhance the participation of the domestic sector especially in the oil industry. Working teams have been formed under the leadership of Petrochemical Industries Company and membership of other oil sector sister companies to implement KPC strategic initiatives for local content strategy
- “Develop & Roll Out Local Content Opportunity Ideation-to-Execution Process”
- Recycling plastic waste and converting it into value-added petroleum products in cooperation with EQUATE, this is one of the initiatives that impact the environment and supports the sustainability initiatives adopted by KPC and its subsidiaries.
- As a continuation of company cost reduction initiatives, and Business Process improvement, PIC is implementing six sigma methodology since 2007. Twenty projects were successfully taken up during 2019 achieving financial benefits of 7 Million K.D, while the cumulative savings since inception is of 85 Million K.D.
- In the field of risk management, the company obtained ISO certification for meeting the international standards for risk management (ISO-31000). This is an unprecedented achievement in the oil and industrial sector, and it is worth mentioning that Petrochemical Industries Company sponsored two initiatives from the risk management strategy 2040 for implementation in oil companies, a working mechanism to enhance the application of the “return on risk-adjusted capital” index to new projects in oil companies, and a risk management component has been included in the new annual employee performance appraisal system in oil companies.
- One of the top priorities of the Company is the development of staff and providing them with the necessary skills to enable them to fully perform their work. About 91% of the staff training plan has been completed, the 9 % lag is due to inability to conduct the training programs due to of the COVID-19 pandemic in the last quarter of the year.
- PIC has been actively implementing the laws passed by parliament and ministerial directives to replace Expatriates with Kuwaiti nationals. The percentage of Kuwaitis in direct employment reached 91%, while in contractors manpower it has reached 24% as against the 25% which is approved by KPC
We believe our Human resources is the main pillar on which the success of company’s strategy is based and therefore PIC continues to invest in developing the human element and creating an encouraging work environment.
The company seeks to expand its product portfolio in implementation of KPC 2040 strategic directions, the company has made extensive progress in new projects during the F.Y 2019/20:
- The acquisition of 49% of the existing specialized petrochemical plants owned by the Korean company SKC was successfully completed on February 29, 2020, where the SK PICGlobal joint venture was established in Korea.
- The engineering, procurement, and construction (EPC) work for a project to build a petrochemical complex in the United States of America to produce ethylene glycol (MEG) have been completed without accidents and at a total cost lower than the approved budget, and the plant was started in September 2019.
- PIC’s Joint Venture with Pembina, Canada received board approvals from KPC and Pembina for commencement of EPC phase of its PDH/PP plant in Alberta Canada. Contracts were finalized and signed by CKPC with Flour for the Propane De-Hydrogenation (PDH) unit and with Technicas Reunidas for the Poly-Propylene Unit. PIC who will be doing the marketing for CKPC products has chalked out a marketing plan and budget for implementation during the initial stage of the project.
- The screening for the Project East located in the Republic of China has been completed, and the updated non-binding offer was delivered on December 2019 and negotiations are underway to agree to the SHA and the SPA , but the process has slowed down due to The current conditions in the Republic of China and the world related to COVID -19.
- An Emergency Sales Plan was made for the coming months in anticipation of any emergency that occurs due to the effects of the Coronavirus, with the update and constant adjustment of the current sales plans in accordance with the changes that occur in the petrochemical
The company’s accomplishments are not limited to the high financial performance levels, but its achievements extended to include many successes on social responsibility for a sustainable development:
- Providing financial support for the Kuwaiti Red Crescent Society campaign “Donate for their education” to teach and cover the academic costs for students in addition to providing the opportunity for workers to contribute and support the campaign through a campaign account that was communicated to all PIC employee
- Sponsorship of Al-Raqqa Park in cooperation with the Public Authority for Agriculture and Fish Resources, where painting and installing park benches has been maintained.
- Honoring the teachers on the International Teacher’s Day in appreciation of their role in developing our generations and conducting open days for children with special needs in their centers and the social welfare home.
- Sponsoring the annual ceremony to honor the women recovered from cancer, in order to spread the spirit of hope in their souls, in addition to honoring those who supported them to overcome the disease, at the Boubyan Club.
The Future vision
- In line with the company’s vision, “To be a global company for the petrochemical industry committed to achieving added value for Kuwait’s national resources,” the company is in the process of re- visiting some projects in line with the new inputs from the updated strategic directions of the Kuwait Petroleum Corporation, to seize the attractive investment opportunities that will contribute to strengthening the global presence of the company and raise its share in global markets
- The company’s strategy also placed the development of the human element a top priority, given the essential role of workers in the success of its long-term strategy. This encompasses building competencies to support the aspirations of growth, operational and marketing competencies, research and technology capabilities etc. considered the most important pillars of the company’s strategy, and which will contribute to creating job opportunities for Kuwaiti youth in the company’s business inside and outside Kuwait.
- At the conclusion of this report, I am pleased to present on my own behalf and on behalf of the Deputy CEOs and all the staff with great gratitude, thanks, and appreciation to:
- His Highness, the Amir of the country, may God protect him
- His Highness the Crown Prince, may God protect him
- His Highness the Prime Minister, may God protect him
- For their continuous support to the company, we also record the sincere thanks and appreciation to His Excellency / Minister of Oil – Chairman of the Kuwait Petroleum Corporation and to the CEO of the Kuwait Petroleum Corporation and to all officials and workers in the Kuwait Petroleum Corporation and associate companies and to all ministries and governmental institutions for their support to the company in all occasions, and we hope to continue this cooperation to achieve the best for the national industry and our dear country.