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COMPANY PROFILE
C O M PA N Y P R O F I L E
Board of Directors
• Ali M. Al-Radwan Chairman of the Board of Directors
• Ghazi F. Alnafisi Vice Chairman of Board of Directors
• Waleed J. Hadeed Member of Board of Directors & CEO
• Abdullah A. Zaman Member of Board of Directors
• Ali R. Al-Bader Member of Board of Directors
• Abdullah E. Al-Kandari Member of Board of Directors
• Mohammad A.Qasim Member of Board of Directors
• Hamad S.H.M.Al-Dalali Member of Board of Directors
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Independent Petroleum Group K.S.C.P. was established on 11th September 1976 as a Kuwaiti Shareholding Company. The main objectives of the Company are to carry out petroleum products and crude oil marketing, operations and construct related petroleum logistic facilities for its account.
Following the invasion of Kuwait, a fully owned subsidiary company named Independent Petroleum Group Limited was established on August 08,1990 in the Commonwealth of the Bahamas to carry on with the same objectives of its Parent Company and which later became the main international oil trading arm of the Group.
The authorized, issued and fully paid up share capital of Independent Petroleum Group K.S.C.P. as of 19th, april 2017 is KWD 18,840,750 (US$ 62,390,590) made up of 188,407,500 shares of 100 Kuwaiti fils each. The Parent Company was listed on the Kuwait stock exchange on 10th December 1995. Total equity of the Group was KWD 95.2 Million (US$ 314.6 Million) as of 30th June 2018.
ABOUT US
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BUSINESS APPROACHThe Company has always approached new business with the aim of developing long-term relationships with the suppliers and consumers. As a result, the Company is now recognised throughout the industry as a first class International Trading Company with impeccable financial credentials and an outstanding record for meeting its contractual commitments.
The Company’s activities extend beyond the initial trading area of the Arabian Gulf and Red Sea expanding into the Mediterranean, Indian Sub-Continent East and South Africa. Concurrently, close business relations have been established with many large international and national oil companies.
Since its inception, the Company has maintained long term relationships with its valued customers and provided flexibility in terms of financing and logistics to support its market position.
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Financial Highlights (KD)
2014 2015 2016 2017 2018
Sales (KD Million) 899 582 508 538 756
Gross Margin 0.5% 1.0% 1.5% 1.4% 2.0%
Net Profit (KD Million) 3.7 3.8 5.0 6.2 6.1
Earning Per Share (Fils) 25.60 26.20 34.63 37.32 34.01
Price Earning (Times) 15.04 10.69 10.54 10.69 11.79
Book Value (Fils) 538 573 593 533 525
Cash Dividend 25% 25% 30% 30% 30%
Dividend Yield 6.5% 8.9% 8.2% 7.5% 7.5%
Total Assets (KD Million) 293.4 269.1 285.3 295.0 330.0
Shareholders’ Equity (KD Million) 77.8 82.9 85.7 96.4 94.9
Return on Average Equity 4.6% 4.7% 5.9% 6.8% 6.4%
Return on Average Capital Employed 2.9% 2.9% 3.6% 4.4% 4.6%
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Financial Highlights (US$)
2014 2015 2016 2017 2018
Sales (US$ Million) 3,171 1,941 1,687 1,779 2,509
Gross Margin 0.5% 1.0% 1.5% 1.4% 2.0%
Net Profit (US$ Million) 13.1 12.6 16.6 20.6 20.4
Earning Per share (US$) 0.09 0.09 0.11 0.12 0.11
Price Earning (Time) 15.04 10.69 10.54 10.69 11.79
Book value/share (US$) 1.84 1.89 1.94 1.77 1.74
Cash Dividend 25% 25% 30% 30% 30%
Dividend Yield 6.5% 8.9% 8.2% 7.5% 7.5%
Total Assets (US$ Million) 1,006 889 935 981 1,093
Shareholder Equity (US$ Million) 266.6 274.0 281.1 320.6 313.9
Return on Average Equity 4.6% 4.7% 5.9% 6.8% 6.4%
Return on Average Capital Employed 2.9% 2.9% 3.6% 4.4% 4.6%
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The Company was able to establish long-term supply arrangements in markets in the Arabian Gulf, East Africa and the Indian Sub-continent. With such activities, The Company not only developed a strong network of suppliers and customers, but also established a reputation for honoring its commitments, and developing flexible and efficient services.
By building on this reputation and deploying its proven financial and operational skills, the Company’s goal is to continue trading in its traditional markets as well as expanding its operations further in its key markets.
The Company is engaged in the marketing of all grades of Petroleum products, LPG and crude oils. These include but are not limited to the following.
• Motor Gasoline of different grades • Jet fuels / Kerosenes • Gas oil / Diesel oil of various grades • Fuel Oil • Naphtha / Condensates • LPG • Crude Oil
The Company remains committed to developing its role in the mid-stream sector of the industry that fall within its defined geographic region and are related to its Marketing activities.
TRADING
SHIPPING
ACTIVITIES
Human Safety, environment protection, preservation of vessel and cargo are given the utmost priority. International shipping and trading regulations and safe practices are followed. Vessels are operated by highly skilled professional staff including Master Mariner. IPG owns and operates 4 petroleum products tankers, two of them (D&K1 & D&K Yusuf Al Ghanim) are fully utilized within IPG own trading activities. The other two vessels (Al Betroleya and Abdul Razzak Khalid Zain Al-Khalid) are currently time chartered out.
List Of Tankers (Owned)
1) M/t D&K 1 1998 (Onomichi Dockyard Co. Ltd / Japan) - Dwt 47,262 Tons2) M/t D&K Yusuf Al Ghanim 2011 (Shinasb Yard / Korea) - Dwt 49,749 Tons3) M/t Abdul Razzak 2015 (STX Offshore & Shipbuilding Co. Ltd / Korea) - Dwt 49,999 Tons4) M/t Al-Betroleya 2015 (STX Offshore & Shipbuilding Co. Ltd / Korea) - Dwt 49,999 Tons
IPG continues to implement its diversification policy as part of its corporate strategy by developing logistical investments (storage terminals & pipelines) that support its marketing activities and are economically viable on standalone basis. This enhances IPG’s asset base, trading capabilities and helps to achieve the objective of income diversification.
Efforts continue, and progress is being made through a wide range of techno-commercial activities, in cooperation with strategic partners (national oil companies, independent and local/international institutions), in developing investment and/or trading opportunities in company’s target markets.
In pursuit of implementing this strategy of diversification, over the years, the Company has invested its resources for the purpose of acquiring and constructing petroleum storage facilities, together with complementary logistics such as jetties, access to pipelines, rail lines, etc.
As a result, the Company has invested approximately US$ 80 million as company’s share of equity in developing a total storage capacity of about 5,215,300 cubic meters (under operation) in 7 storage terminals operating in Africa, Mediterranean, and Asia.
In addition, the Company participates effectively, in close coordination with its partners, in monitoring and following up projects under construction as well as developing new/expansion projects for its Joint Venture and Associate Companies.
PROJECTS
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D&K Holdings: (L.L.C) – UAE:(IPG share 100%)
D&K Holdings LLC is the shipping arm of IPG. The Company owns and operates 4 petroleum product vessels which are fully utilized by IPG. The D&KH fleet provides IPG with the required controlled tonnage coverage.
Uniterminals – Lebanon:(IPG share 50%)
Uniterminals markets petroleum products to wholesale buyers in Lebanon. It owns and operates a petroleum product storage terminal with a capacity of 74,000 cubic meters. It has a paid-up capital of US $16.7 million. By Shareholding, IPG’s capacity is 37,000 cubic meters.
Other shareholder is:
n Unihold SAL, Lebanon (50%)
Inpetro SARL, Beira – Mozambique:(IPG share 40%)
Inpetro owns and operates petroleum products storage terminal in Port Beira, Mozambique with a storage capacity of 95,000 cubic meters constructed in 2006 at a total capital cost of US $26 million. By Shareholding, IPG’s capacity is 38,000 cubic meters.
Other shareholders are:
n PETROMOC – National Oil Company of the Republic of Mozambique (20%)n NOIC - National Oil Infrastructure Company of Zimbabwe (Pvt.) Limited (40%)
Arab Tank Terminals Ltd (ATT), Yanbu – Kingdom of Saudi Arabia:(IPG share 36.5%)
ATTL owns and operates a storage facility of 288,300 cubic meters of which 268,500 cubic meters is for petroleum products and 19,800 cubic meters is for chemical products with a total capital cost of US$ 74 million along with a pipeline connection (three 16” lines) to Samref Refinery, Mobil / Aramco Yanbu. To improve the operational efficiency and flexibility of the terminal, Phase III Infrastructure Project (for new facilities like new pipelines & pumps, access to the new Berth, etc.) at a total cost of US$ 14 million is partially commissioned in the beginning of 2018 and the remaining works of 24” line connection to berth is expected to be commissioned in Q3 2019. Followed by the signature
PROJECTS UNDER OPERATION1
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of a Development Agreement with a Saudi Petrochemical Company to provide Chemical storage of 45,000 cubic meter capacity under a 20-year storage commitment, ATT awarded the EPC Contract for the scope of works (tank conversion, pipelines, pumps, MLAs, etc.) and commissioning is expected at the end of 2019. By Shareholding, IPG’s capacity is 105,230 cubic meters.
Other shareholders are:
n Emirates National Oil Company (ENOC) (36.5%)n Saudi Arabian Refining Company (SARCO) (27%)
Horizon Tangiers Terminals SA (HTTSA) – Morocco:(IPG share 32.5%)
HTTSA owns and operates a storage and bunkering terminal of 533,000 cubic meters for clean and black petroleum products at Port Tangiers, Morocco under a 25 year Concession Agreement with TMSA (Agence Spéciale Tanger Méditerranée). The capital cost of the terminal is € 140.5 million. By Shareholding, IPG’s capacity is 173,199 cubic meters.
Other shareholders are:
n Horizon Terminals Limited (HTL), 100% subsidiary of Emirates National Oil Company (ENOC) (34%)n Afriquia SMDC (33.5%)
Horizon Djibouti Holdings Limited (HDHL) – Djibouti:
(IPG share 22.22%)
HDHL owns 90 % of the Horizon Djibouti Terminals Limited (HDTL), with the remaining (10%) owned by Govt. of Djibouti. HDTL owns and operates an independent storage terminal for petroleum products, LPG, chemicals and edible oils with a storage capacity of 371,000 cubic meters constructed at a capital cost of US $100 million. By Shareholding, IPG’s capacity is 74,200 cubic meters.
Other shareholders are:
n Horizon Terminals Limited (HTL) (44.44%)n Net Support Holdings Limited (NSHL) (27.78%)n Essense Management Limited (EML) (5.56%)
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Horizon Singapore Terminals Pty. Ltd. (HSTPL)– Singapore:(IPG share 15%)
HSTPL owns and operates an independent petroleum storage terminal with a storage capacity of 1.2 million cubic meters and four jetties at a capital cost of US$ 299 million. By Shareholding IPG’s capacity is 186,750 cbm.
Other shareholders are:
n Horizon Terminals Limited (HTL) (52%)n Boreh International Limited (BIL) (8%)n South Korea Energy Asia Pte. Limited (SK) (15%)n Martank BV (MBV) (10%)
Vopak Horizon Fujairah Limited (VHFL) – UAE:(IPG share 11.11%)
VHFL owns and operates an independent petroleum products storage terminal in Fujairah, U.A.E. with a storage capacity of 2.6 million cubic meters including marine facilities with 4 berths and one single point mooring (SPM), at a total capital cost of US $505 million. By Shareholding, IPG’s capacity is 289,860 cubic meters.
Other shareholders are:
n VOPAK Oil Logistics Europe & Middle East B.V. of Netherlands (VOPAK) (33.33%)n Horizon Terminals Limited (HTL) (33.33%)n The Government of Fujairah (22.22%)
Asia Petroleum Limited (APL) – Pakistan:(IPG share 12.5%)
APL owns and operates an 82 Kilometer petroleum products pipeline (including a pumping station and storage facility) in Pakistan. The pipeline runs from Zulfiqarabad terminal at Pipri, Karachi to Hub, Baluchistan to transport Fuel Oil for HUBCO Power Plant. The facility was constructed at a total capital cost of US $100 million.
Other shareholders are:
n Pakistan State Oil (PSO) (49%)n Asia Infrastructure Ltd of Singapore (AIL) (26%)n VECO International of USA (VECO) (12.5%)
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To expand its business opportunities within its defined geographic region and consolidate its operations in existing markets; the Company continues to explore potential investment opportunities in strategic locations where the Company has significant synergies or advantages in terms of trading.
PROJECTS UNDER DEVELOPMENT
IPG-GALP Beira Terminal Limitada (IGBTL) - Beira, Mozambique:(IPG share: 45%)
The project envisages building a hydrocarbon storage facility in the Port Beira Mozambique, for a capacity of 65,000 cbm along with other logistical facilities such as, loading gantries, access to Jetty, access to CPMZ pipeline, etc. The project is expected to be commissioned by Q2 of 2020 at a cost of US$ 70 Mn (estimated).
Other shareholders are:
n Petrogal Mozambique Lda, (part of Galp Energia SGPS, SA, Portugal) (45%)n SPI – Gestão e Investimento, S.A.R.L. (10%)
GALP – IPG Matola Terminal Limitada (GIMTL) Matola, Mozambique:(IPG share: 45%)
The project envisages building a hydrocarbon storage facility (Liquid & LPG) in the Port Matola Mozambique for a capacity of 66,000 cbm along with other logistical facilities such as, loading gantries, access to Jetty, etc. The project is expected to be commissioned by Q2 of 2020at a cost of US$ 100 Mn (estimated).
Other shareholders are:
n Petrogal Mozambique Lda, (part of Galp Energia SGPS, SA, Portugal) (45%)n SPI – Gestão e Investimento, S.A.R.L. (10%)
PROJECTS UNDER CONSTRUCTION1
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1) Inpetro SARL, Beira - Mozambique Storage Capacity - 95,000 cbm.
2) Arabtank Terminals Ltd. (ATT) Yanbu - Kingdom of Saudi Arabia Storage Capacity - 287,700 cbm.
3) Horizon Tangiers Terminals SA (HTTSA) - Morocco Storage Capacity - 533,000 cbm
4) Horizon Djibouti Holdings Limited (HDHL) - Djibouti Storage Capacity - 370,000 cbm.
5) Horizon Singapore Terminals Private Limited (HSTPL) Singapore Storage Capacity - 1.2 million cbm.
6) Vopak Horizon Fujairah Limited Storage Capacity - 2.60 million cbm.
7) Uniterminals - Lebanon Storage Capacity - 74,000 cbm.
8) Asia Petroleum Limited - Pakistan 82 Km pipeline.
Total Storage Capacity (within 7 operating terminals): 5,215,300 m3
IPG’s capacity (by Shareholding): 904,238 m3
STORAGE TERMINALS & PIPELINEPLACE & CAPACITY
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COMPANY
Head Office
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Independent Petroleum Group K.S.C.P. (100% share holding publiclimited company listed in Kuwait Stock Exchange)Tel : (965) 22276222 / 25312840-7 (8 Lines)Fax : (965) 22276100 / 101 / 102 / 103 - 25329953 / 7E-mail : [email protected] : www.ipg.com.kw
International Trading Arm:Independent Petroleum Group Limited
Registered Office Bayside Executive Park, Building 3, West Bay Street, P.O. Box N-4875, Nassau , Bahamas
BahamasMailing AddressP. O. Box 24027Safat 13101KuwaitCourier AddressArea 1A, 7th Street, Building No. 18,4th Ring Road, Jabriya, Kuwait.
To co-ordinate our global activities, we have following regional offices.
Overseas Offices1) Independent Petroleum Group (Asia) PTE LTD Singapore.2) Independent Petroleum Group of Kuwait Limited London U.K.3) Independent Petroleum Mozambique, LDA Maputo, Mozambique.4) IPG (South Africa) (Proprietory) Limited - Johannesburg South Africa.5) Independent Petroleum Group Zimbabwe.6) D&K Holdings LLC Dubai - United Arab Emirates7) Independent Petroleum Group Morocco8) Independent Petroleum Group Zambia
Independent Petroleum Group K.S.C.P.P. O. Box : 24027 Safat 13101 KuwaitTel : (965) 22276222Fax : (965) 22276100 / 101 / 102 / 103E-mail : [email protected] : www.ipg.com.kw
MOZAMBIQUE
IPG Projects
IPG Offices
