JTC posts KD 4.1m net profit in 2020, approves 20% cash dividend
KUWAIT: Jassim Transport & Stevedoring Co KSCC (JTC), a leading provider of equipment and logistics services in the GCC, held its Annual General Meeting (AGM) for the financial year ending 31st December 2020 on 31st March 2021 and approved distribution of 20 percent cash dividends (20 fils per share) to shareholders amounting to KD 3 million.
JTC reported a net profit of KD 4.1 million for 2020, compared to KD 7.0 million in 2019. Revenue for the year stood at KD 21.2 million, against KD 24.0 million in the previous year. Total assets as of December 31, 2020 was KD 51.4 million, compared to KD 51.7 million at the end of 2019.
Incorporated in 1979, JTC operates through its subsidiaries across three business segments: Contract Logistics & Ports Management, Equipment Leasing and Power Rental. Over the years, the company has established itself as a leading service provider supporting various oil & gas and infrastructure projects in Kuwait, Qatar and Saudi Arabia. JTC is on track to listing on Boursa Kuwait through a private placement planned later this year.
JTC’s CEO Adel Kohari said: “We are pleased with our performance in 2020, with our diversified portfolio of services in multiple geographies and our strong execution focus helping us overcome significant market challenges due to the COVID-19 pandemic.
While all three of our business segments were impacted by the economic repercussions of the pandemic, we managed to sustain a healthy level of overall profitability by maximizing operational efficiency.
“We have also continued to focus on new investments, both to strengthen our existing business segments and also in new strategic growth areas which are expected to result in new revenue streams in the second half of 2021 and 2022. While we still face significant external challenges, we have a positive outlook for the coming years”.
He added: “In line with the shareholders strategy to grow the business, the company has initiated the listing process and has received preliminary regulatory approval to list on Boursa Kuwait from the regulatory authorities. We have appointed Kamco Invest to manage the process and will be setting the dates and plan to successfully complete the private placement followed by listing”.
JTC’s fleet and capabilities have seen significant expansion in the past few years, which has enabled the company to strengthen its offerings in all its target markets. In 2020, JTC was awarded a 3-year service contract by Kuwait’s Ministry of Electricity & Water, and expanded its ports services to Shuaiba port.
JTC has consistently distributed dividends year-over-year totaling KWD 28.7 million in payouts in the last five years while maintaining a healthy and debt-free balance sheet. Excluding the COVID-induced challenges in 2020, the company has shown impressive growth in top-line and bottom-line, with growth CAGRs of 7.7 percent and 14.6 percent, respectively, during the period from 2014-2019.