KUWAIT: Chairman of the Board of Safat Investment Company Abdullah Hamad Al-Terkait said the company is open for merger with other local companies. This, he said, will be an added value to shareholders of various groups. The process requires extensive technical studies according to the standards and legal rules. The concept will be presented to the concerned regulatory authorities when a final deal is reached.
Al-Terkait was speaking on the sidelines of the general assembly which elected its board of directors last week for a new term. The new board of directors include; Abdullah Hamad Al-Terkait (Chairman); Fahad Abdulrahman Al-Mukhaizeem (Deputy Chairman); Abdulrazaq Zaid Al-Dhubayan; Nasser Bader Al-Sharhan; Anwar Ali Al-Taqi; Mishal Ahmad Al-Jarki and Abdulmohsen Suleiman Al-Mashaan.
Al-Terkait stated that the company achieved a total (operating and investment) revenues of KD 7 million – of which the operating revenues amounted to KD 3.3 million, compared to what was achieved in the previous year, where the group achieved an operating income of KD 3 million – an increase of 11% compared to the previous year.
In line with the company’s prudent policy of hedging and proactive recognition of defaults on some investments, Al-Terkait explained that Al-Safat Investment Company achieved a net profit of KD 1.4 million for the year 2021, equivalent to earnings per share of 5.34 fils, compared to about KD 7 million for the net profit achieved in the year 2020.
He noted that Safat has solid assets that amount to KD 40 million at the end of 2021, pointing to an increase in total shareholders’ equity to KD 23 million by the end of December 2021 (an increase of 4% compared to the same period in 2020). “The annual increase is relatively small compared to previous years, but we consider it a clear evidence of the Group’s resilience in the face of unusual market conditions,” he pointed out, adding that the total debt and liabilities of the group decreased by 6% to reach KD 11 million in 2021 compared to KD 12 million the previous year.
Al-Terkait said that the Al-Safat Group has developed flexible strategies that were adopted in 2019 and will end in the year 2023. Al-Safat seeks to carry out an effective exit from non-generating assets and work to replace it with assets with high potentials that are carefully selected to be able to achieve a good and sustainable income.
He expressed his confidence in the company’s business model which is characterized by strength and flexibility – confirming the team’s ability and ambitions. He said the company enjoys a good status that allows it to adjust to the changes in the financial services market and the economic environment in general.
He said that Al-Safat is looking forward to future listings as it seeks to prepare its entities in line with standard conditions. The company has succeeded in adding a new sustained source of revenue with the conclusion of Al-Ahmadi project at the end of 2021. The project is expected to have a sustainable financial effect with the current company’s real-estate projects that is in Hawally – (BOT project).
The chairman indicated that there are future efforts to make Safat eligible for listing in the premier market, through the market value of the company in the range of KD 78 million. “We are happy with our ability to meet our commitments to achieve our strategic goals and strengthen the market’s confidence,” he noted. “We are moving towards diversifying investments. The company will support and finance small and medium projects so as to promote Kuwaiti young entrepreneurs,” he said.
“Corporate social responsibility is the voluntary contribution of our company to the community as we contribute in the economic, social, environmental and other developmental projects and programs in the country”, he said, adding that Safat pays great attention to social responsibility and desires to play an active role in giving back to the society and to the state – “based on our firm belief that the role of companies should not stop at profitability only.” Al-Terkait called for the importance of extending the social responsibility to spreading environmental and health awareness, which will focus on the upliftment and renaissance of societies, in addition to charitable works.