UPAC Reports Q2 2021 Earnings Increase
12 August 2021, Kuwait
United Projects for Aviation Services Company (UPAC), a commercial real estate and facilities management company, today announced second-quarter earnings of KD 1.79 million, an increase of 242% compared to the same period in 2020. The revenue for six months ended June 30, 2021 saw a 6.9% increase compared to the same period last year. The increase is primarily due to one off rental waivers offered to tenants last year to support them as a result of the challenges faced by the COVID lockdown.
The company’s Q2 EBITDA increased by 526% amounting to KD 1.86 million when compared to the negative EBITDA of KD (438) thousand during the same period in 2020. This increase was the result of a KD 2 million settlement received from the Directorate General of Civil Aviation (DGCA) with represent the companys dues towards services carried out at Kuwait International Airport. This growth is further attributed to a gradual resumption in traffic and an overall improvement in operating performance.
Nadia Akil, Chief Executive Officer at UPAC, said: “With the vaccination program fully underway in Kuwait, airport operations are showing signs of a gradual recovery. We expect to see air traffic pick up by the third quarter of 2021 as more flights resume operations. We continue to work closely with the DGCA and other government authorities to ensure a smooth and safe transition once airport traffic picks up again.”
UPAC operates three major projects in Kuwait, including the management and operations of Kuwait International Airport’s Terminal 1 airport mall, parking and related facilities, as well as the management of real estate and parking facilities at the airport’s Sheikh Saad terminal as well as the parking and related facilities at Terminal 4, the dedicated Kuwait Airways terminal.
UPAC is also a developer of Abu Dhabi’s Reem Mall. Construction of the mall is more than 95% complete and the project timeline is moving on schedule toward its targets. The mall, located on Abu Dhabi’s Reem Island, will feature over 2 million square feet of retail, leisure, dining, and entertainment options. It will include the region’s first fully integrated omni-channel retail ecosystem with fully enabled digital, e-commerce and logistics capabilities. Reem will also be home to the world’s largest snow play park, Snow Abu Dhabi.