United Projects for Aviation Services Company (UPAC), a leading commercial real estate and facilities management company, today announced its financial year end results for 2019. UPAC recorded a net profit of KD 8.95 million, compared to KD 9.75 million in 2018. UPAC revenue amounted to KD 13.42 million in 2019 compared to KD 13.72 million in 2018.
For Q4 2019, UPAC witnessed an increase in revenue of 2.3% reaching KD 3.26 million, compared to KD 3.19 million for the same period in 2018. The company recorded a net profit of KD 1.52 million in Q4 2019, compared to KD 2.18 million in Q4 2018.
The Board of Directors has recommended not to distribute dividends for the fiscal year ending on 31 December 2019, for the purpose of strengthening the Company’s financial position and covering its expansion plans namely in terms of its ongoing investment in the Reem Mall project in Abu Dhabi. This recommendation shall be subject to the final approval of the Company’s General Assembly and regulatory authorities.
Nadia Akil, Chief Executive Officer – UPAC, said: “2019 has been a relatively stable yet challenging year, our airport operations have undergone a few changes following the shift earlier in the year of passenger traffic to their dedicated airline terminals at Kuwait International Airport. In February 2019, UPAC launched its parking operations at Terminal 4 (the dedicated Kuwait Airways terminal), and although a new startup operation, we have been able to partially offset the overall impact by generating additional revenues and expect that operations should further stabilize. UPAC currently operates four major projects in Kuwait, and one in Abu Dhabi currently under development. Reem Mall, our mega $1.2bn project, is progressing well with construction moving ahead at a stable pace. The Mall will feature a complete omni-channel ecosystem, with fully enabled digital, ecommerce and logistics capabilities, and be home to a unique mix of retail, leisure and dining experiences strategically located in the heart of Abu Dhabi.”
Akil added: “At the Kuwait International Airport we are currently working on introducing and implementing new digital services and automated parking and payment features for customers at both Terminal 1 and at Terminal 4. Our aim is to enhance our customers’ experience with smooth and quick access when travelling or visiting the airport mall. We look forward to continue to drive operational efficiencies and enhance customer service levels, while also working towards increasing UPAC’s portfolio both locally and within the region.”
UPAC currently manages the operations at Kuwait International Airport’s main Terminal 1 including the management of real estate at the airport mall, parking and related facilities, in addition to the management of parking facilities at the airport’s Terminal 4, as well as Sheikh Saad Terminal and Discovery Mall in Kuwait City.
2019 Financial Highlights:
| FY 2019 (Million KD) |
FY 2018 (Million KD) |
Variance (%) |
Q4 2019 (Million KD) |
Q4 2018 (Million KD) |
Variance (%) |
|
|---|---|---|---|---|---|---|
| Revenue | 13.42 | 13.72 | -2.2% | 3.26 | 3.19 | 2.3% |
| Net Revenue | 12.23 | 12.55 | -2.5% | 2.97 | 2.89 | 2.9% |
| EBITDA | 8.43 | 9.59 | -12.1% | 1.84 | 2.00 | -7.7% |
| Net Profit | 8.95 | 9.75 | -8.2% | 1.52 | 2.18 | -30.3% |
| EPS (fils) | 59.91 fils | 80.16 fils | 12.15 fils | 18.07 fils |
