UPAC Reports 2020 Financial Year-End Results

30 March 2020, Kuwait

United Projects for Aviation Services Company (UPAC), a commercial real estate and facilities management company announced a full-year 2020 revenue of KD 6.73M, a decrease of 49% from 2019, and EBITDA declined 69% from 2019 to KD 2.59M.

Full-year UPAC reported a net loss of KD (3.27M), equivalent to earning per share of (13.3 fils), a decrease of 135% from 2019.

UPAC’s results were heavily impacted by the COVID-19 pandemic and other related restrictions taken to halt international travel to and from Kuwait International Airport, along with closures of all shopping malls across the country for much of 2020.

The Board of Directors has recommended against the distribution of dividends for the fiscal year ending December 31, 2020. This recommendation is subject to the approval of the Company’s General Assembly and regulatory authorities.

During the fourth quarter, the company increased its issued and paid-up capital by KD 28,340,000, divided into 218,000,000 ordinary shares (including KD 21,800,000 nominal value, in addition to KD 6,540,000 issuance premium). The company’s shareholders subscribed to all the issued shares during the subscription period, which closed on December 15, 2020. The impact of the capital increase has been reflected in the financial statements for the period ending on December 31, 2020.

Nadia Akil, Chief Executive Officer at UPAC, said: “2020 was challenging; although we took necessary steps to reduce cost and mitigate related risks during the course of the year, our operations in Kuwait were directly impacted by the various measures taken by the government to limit travel in response to the COVID-19 pandemic. We continue to work closely with the Directorate General of Civil Aviation and other government authorities as they take steps to contain the pandemic in Kuwait and ensure a smooth transition once airport traffic picks up again.”

Akil added: “Despite these challenges and a difficult work environment, most of our essential operations have continued undisrupted, even during the lockdown period. We continue to optimize and improve our digital services to enhance the customer experience at Kuwait International Airport’s Terminal 1 and Terminal 4.”

Construction at Abu Dhabi’s Reem Mall is ongoing and as of December 2020, more than 75% complete. Positioned on Reem Island, Reem Mall will become the region’s leading leisure, shopping, and travel destination with 2 million square feet of retail, leisure, dining, and entertainment choices including the world’s largest snow play park, Snow Abu Dhabi. The mall will also be home to a first-of-its-kind fully integrated omni-channel retail ecosystem with fully enabled digital, eCommerce and logistics capabilities, bringing together all consumer and retailer services ensuring a seamless experience for consumers and retailers.