kuwait shareholding company (public)anna report 2018 kuwait shareholding company (public)...

ANNUAL REPORT 2018

Kuwait Shareholding Company (Public)Incorporated in Kuwait under

An Amiri Decree no. (46) issued in 02/04/1974

Authorized & Paid-up Capital : KD 18,024,151.700

Kuwaiti Dinars Eighteen Million Twenty Four Thousand One Hundred Fifty One and Seven Hundred Fils

Commercial Registration No : 20735Head Office : Shuwaik Port, Gate No.7.P.O.Box : 21998, Safat 13080, Kuwait

Tel : 2462 4000Fax : 2483 0291

website : www.heisco.comemail : [email protected]

ANNUAL REPORT 2018

ANNUAL REPORT 2018

His Highness The Amir of KuwaitSheikh Sabah Al-Ahmed Al-Jaber Al-Sabah

His Highness The Crown PrinceSheikh Nawaf Al-Ahmed Al-Jaber Al-Sabah

ANNUAL REPORT 2018

CONTENTS

BOARD OF DIRECTORS ..................................................................................... 5

BOARD OF DIRECTORS REPORT ..................................................................... 6-15

INDEPENDENT AUDITOR'S REPORT ................................................................. 17-19

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 2018 ...................... 20

CONSOLIDATED STATEMENT OF INCOME 2018 ............................................. 21

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 2018 ............ 22

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 2018 ...................... 23

CONSOLIDATED STATEMENT OF CASH FLOWS 2018 ................................... 24

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2018 ................ 25-51

HEISCO AT A GLANCE 2018 .............................................................................. 54-67

ANNUAL REPORT 2018

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BOARD OF DIRECTORS

ADNAN MUSAED KHALIFAH AL KHARAFIChairman

ALI HASSAN KHALILVice Chairman

HUSSEIN MORAD YOUSIF BEHBEHANIDirector

OMAR ZUHAIR AL YAWERDirector

GHAZI AHMED AL ROUMIDirector - Independent

ANNUAL REPORT 2018

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BOARD OF DIRECTORS REPORT FOR 2018

Heavy Engineering Industries and Shipbuilding Company K.S.C. (Public)

TO OUR SHAREHOLDERS,

The Board of Directors of the Company convey its greetings and is pleased to express its deep appreciation for your continued interest in the achievements of the Company in all sectors.

The Board of Directors is pleased to submit the 43rd Annual Report which sets out the activities and performance of the Company during the Year 2018, which also contains the main indicators of the consolidated Financial Statements of Heavy Engineering Industries & Shipbuilding Company K.S.C (Public) and its subsidiary, Gulf Dredging and General Contracting Company K.S.C (Closed) for the year ended on 31.12.2018.

SHIPYARD OPERATIONS:

Projects Completed During the Year 2018 :-

● Towing to Yard, Overhauling and Delivery of Calm Buoy at Sea Berth No.3 at Al Khafji for Joint Operations, (Saudi Arabia).

● Docking Works and Installation of New main Engines with Control Systems, and Repowering Crew Boats (3Nos.) at HEISCO Shipyard for M/s Kuwait Oil Company, with M/s AR Albisher and Z. Alkazemi Company (MTU Local Agents).

● Major Refurbishment of SPM Buoy, as a subcontractor to HEISCO - Oil and Gas Operations, for M/s Saudi Aramco Chevron Inc., (Kuwait).

● Dry-Docking and Maintenance for the Service Boats “Nakilat 10” and “Nakilat 11” at HEISCO Shipyard for M/s Kuwait Oil Tanker Company.

● Dry-Docking and Repairs of Two Vessels – Passenger/Ro-Ro Cargo Ship “Al Khiran” and Passenger/Landing Craft “Ikarus Failaka” for M/s Kuwait Public Transport Company.

● Afloat Repairs of 1000 Ton Floating Crane Barge “Arvand Tide 1000” for M/s Hyundai Engineering and Construction Co. Ltd, (Kuwait).

● Dry-Docking and Repairs and Underwater Services of Various Vessels (Barges, Tugs and Crew Boats) belonging to M/s Hyundai Engineering and Construction Co. Ltd, (Kuwait).

● Dry-Docking and Repairs of Cutter Suction Dredger “Li Long” for M/s China Harbour Engineering Arabia Co. Ltd, (Kuwait).

● Dry-Docking and Repairs and Underwater Services of Various Vessels (Tugs, Pilot / Crew Boats) belonging to M/s Smit Lamnalco, (United Arab Emirates).

● Dry-Docking and Repairs of Kuwait Navy’s Patrol Boat “Al Bateel 4” for M/s United States Marine Inc. (USA).

● Underwater Cleaning and Servicing of Water Jets Units for Kuwait Navy’s MKV “Patrol Boats” at Kuwait Naval Base, for M/s United States Marine Inc (USA).

● Dry-Docking and Repairs of Kuwait Coast Guard Fleet at HEISCO Shipyard.

Projects Ongoing During the Year 2018:-

● Dry-Docking and Repairs of Various Vessels for Kuwait Oil Company.

● Dry-Docking and Repairs of Various Vessels for Kuwait Fire Service Directorate.

● Dry-docking and Repairs of US Army Marine Fleet in Kuwait – US Army On Conditional Cyclic Maintenance (OCCM) Program.

Afloat Repairs of 1000 Ton Floating Crane Barge “Arvand Tide 1000” for M/s Hyundai Engineering

and Construction Co. Ltd, (Kuwait).

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● Dry-Docking and Repairs and Underwater Services of Various Vessels (Barges, Tugs and Crew Boats) belonging to M/s Hyundai Engineering and Construction Co. Ltd, (Kuwait).

● Dry-Docking and Repairs of Cutter Suction Dredger “Li Long” for M/s China Harbour Engineering Arabia Co. Ltd. (Kuwait).

● Dry-Docking and Repairs and Underwater Services of Various Vessels (Tugs, Pilot / Crew Boats) belonging to M/s Smit Lamnalco, (United Arab Emirates).

● Dry-Docking and Repairs of Kuwait Navy’s Patrol Boat “Al Bateel 4” for M/s United States Marine Inc. (USA).

● Underwater Cleaning and Servicing of Water Jets Units for Kuwait Navy’s MKV “Patrol Boats” at Kuwait Naval Base, for M/s United States Marine Inc.(USA).

Agreements & Other Achievements During the year 2018:-

● Renewal / Amendments to Representative Agreements with Local and International Clients.

● New Representative Agreements with Local and International Companies.

● Renewal for membership of International Marine Contractors Association (IMCA).

● Non-Disclosure Agreement with International Companies for the upcoming potential projects.

● Care of Stock/Supplies in Storage (COSIS) and Field Level Maintenance to US Army Vessels stationed at Muhammad Al-Ahmad Naval Base and Camp Arifjan, Kuwait (5 Years Contract).

● Supply of Marine Fleet Staff for KOC Marine Operations.

● Periodical Overhauling of Marine Vessels (4 Nos.), at HEISCO Shipyard for Khafji Joint Operations, (Saudi Arabia).

● Major Refurbishment of Landing Craft “Jalboot 102” for Ministry of Defense, (Kuwait).

● Diving Operation at MEW Az zour for HEISCO Oil and Gas Operations.

● Underwater Strainer Cleaning for Sea Water Lift Pumps for Kuwait National Petroleum Company.

Projects Awarded During the Year 2018:-

● Dry-Docking and Repairs of Kuwait Coast Guard Fleet at HEISCO Shipyard.

● Major Refurbishment of Landing Craft “Jalboot 102” for Ministry of Defense, (Kuwait).

● Dry-Docking and Repairs of Two Vessels – Passenger/Ro-Ro Cargo Ship “Al Khiran” and Passenger/Landing Craft “Ikarus Failaka” for M/s Kuwait Public Transport Company.

● Afloat Repairs of 1000 Ton Floating Crane Barge “Arvand Tide 1000” for M/s Hyundai Engineering and Construction Co. Ltd., (Kuwait).

HEISCO Shipyard built-up Stand at SMM Exhibition in Hamburg Messe und Congress,

Hamburg, Germany.

Major Refurbishment Works of Landing Craft “Jalboot 102” for Ministry of Defense, Kuwait.

ANNUAL REPORT 2018

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● HEISCO Shipyard participated in the 28th SMM (Shipbuilding, Machinery and Marine Technology) Exhibition from 04 - 07 September 2018, the world’s leading International Maritime Trade Fair in Hamburg, (Germany).

● HEISCO Shipyard participated in the SMME (Seatrade Maritime Middle East) Exhibition from 29 – 31 October 2018, the maritime meeting place for the Middle East held in Dubai International Convention & Exhibition Centre, Dubai, (United Arab Emirates).

● HEISCO Shipyard is one of the sponsors at the Seatrade Maritime Awards Middle East, Indian Sub-continent & Africa held on 28 October 2018 at Atlantis, The Palm Dubai, (United Arab Emirates).

● Marketing Campaign carried out by publishing HEISCO Shipyard advertisements in various local / International magazines, handbooks and websites. Also, updated the official Shipyard Operations Brochure.

● HEISCO Shipyard reserved space and registered for the 29th SMM (Shipbuilding, Machinery and Marine Technology) Exhibition from 8 - 11 September 2020, the world’s leading International Maritime Trade Fair in Hamburg, (Germany).

HEISCO Shipyard built-up Stand at SMME Exhibition in Dubai International Convention &

Exhibition Center, Dubai, UAE.HEISCO sponsored the table gifts

at the Seatrade Maritime Awards 2018.

HEISCO sponsored and presented the award category - “Green Shipping Award” at the

Seatrade Maritime Awards 2018.

ANNUAL REPORT 2018

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OIL & GAS OPERATIONS:


● Prefabrication works for piping spool for Water Management at GC 1 & 2 in South and East Kuwait areas with the main contractor for Kuwait Oil Company.

● Annual Mechanical and Instrument & Control maintenance works in Doha West Power Station with main contractor for Ministry of Electricity & Water.

● Supply of Carbon Steel Vessels for Az zour Project with the main contractor for Kuwait Integrated Petroleum Industries Company.

● Supply of complete Plant Air Receiver and Instrument Air Receiver for Water Management at GC 1 & 2 in South and East Kuwait areas with the main contractor for Kuwait Oil Company.

● Engineering Construction - Mechanical works in Ethylene Unit-2, Aromatics, Ethyl Benzene Styrene Monomer, Ethylene Glycol-2, & Utilities-2 Projects for Turnaround-2017, EQUATE Petrochemical Company.

● Supply of Pressure Vessels for Water Knockout Facilities in GC 1 & 2 with the main contractor for Kuwait Oil Company.

● Design, Fabrication, Supply & Construction of Storage Tanks, Civil and Building works for New Gathering Centre GC-29 in North Kuwait with the main contractor for Kuwait Oil Company.

● Fabrication, Supply & Construction of Storage Tanks, Civil & Building works for New Gathering Centre GC-30 in North Kuwait with the main contractor for Kuwait Oil Company.

● Pipeline works in MGT (Manifold Group Trunk Line System) Project for GC 29, 30 & 31 in North Kuwait with the Main Contractor for Kuwait Oil Company.

● Mechanical Maintenance Services at Shuaiba South Power Station & Az zour South Power Station for the Ministry of Electricity and Water.

● Professional Manpower Supply Services for Khafji Joint Operations.

● Reconditioning of Plate Heat Exchangers for EQUATE Petrochemical Company.

● Maintenance Works for Old Gas Turbines at Az zour South Power & Water Distillation Station with the Main Contractor for Ministry of Electricity & Water.

● Civil and associated building works for M20 substation in Mina Al-Ahmadi Refinery with the main contractor for Kuwait National Petroleum Company.

● Electrical and associated civil works for New Gathering Centre GC-30 in North Kuwait with the main contractor for Kuwait Oil Company.

● SPM Buoy Refurbishment and Chain Replacement at Mina Saud for Chevron (Saudi Arabia).

Projects Ongoing During the Year 2018 :-

● Early Civil and Building works for New Gathering Centre GC-32 with the main contractor for Kuwait Oil Company.

● Mechanical Maintenance services at Mina Abdullah Refinery for Kuwait National Petroleum Company.

● Mechanical Manpower Supply for EQUATE Petrochemical Company.

● Structural, Mechanical and Piping works for Clean Fuel Project MAB2 with the main contractor for Kuwait National Petroleum Company.

● Rehabilitation of plate, shell and tube type Heat Exchangers in South & East Kuwait areas for Kuwait Oil Company.

Desalter Erection Works at GC-17 Debottlenecking Project for KOC

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● Structural, Mechanical, Piping, Electrical and Instrumentation Works for Sulfur Area at Az zour Refinery project (EPC Package 2&3) with main contractor for Kuwait Integrated Petroleum Industries Company.

● Construction of Flowlines and associated works in West Kuwait for Kuwait Oil Company.

● Supply and Construction of Storage Tanks for Lower Fars Heavy Oil Development Program Phase-1 Project in North & South Tank Farm with the Main Contractor for Kuwait Oil Company.

● Debottlenecking of Gathering Centre GC-17 at West Kuwait for Kuwait Oil Company.

● Industrial Radiography Services at MAA, MAB and SHU Refineries for Kuwait National Petroleum Company.

● Maintenance Support Service for Export Facilities for Kuwait Oil Company.

● Rehabilitation of Steam Turbines and Generators at Doha West Power and Water Distillation Station with the main contractor for Ministry of Electricity and Water.

● Mechanical Maintenance Services for Joint Operations at Wafra.

● Secondment Manpower Supply Services for Kuwait National Petroleum Company.

● Rehabilitation of Plate and Shell & Tube Type Heat Exchangers at North and West Kuwait Areas for Kuwait Oil Company.

● Electrical and instrumentation works for Clean Fuel Project MAB2 Area # 3 Package with the main contractor for Kuwait National Petroleum Company.

● General construction works for compressors, utilities and interconnecting sub areas and EPC for API tanks of the EPC & C of Gas Train 5 Project at Mina Al-Ahmadi Refinery with the main contractor for Kuwait National Petroleum Company.

● Mechanical, Electrical, Instrumentation and Telecom Works for Az zour Refinery project (EPC Package 4) with the main contractor for Kuwait Integrated Petroleum Industries Company.

● Maintenance of Vapour Recovery Units at Sabhan and Ahmadi Depots for Kuwait National Petroleum Company.

● Operations and maintenance of Sludge Handling and Treatment Facility at Mina Abdullah Refinery for Kuwait National Petroleum Company.

● Retubing of heat exchangers during major shutdowns at Mina Al-Ahmadi Refinery for Kuwait National Petroleum Company.

● Piping fabrication and painting works for Az zour New Refinery Project (EPC Package 4) with the main contractor for Kuwait Integrated Petroleum Industries Company

● Maintenance support services for Oil Movement and Measurement Facilities for Kuwait Oil Company.

Civil and Building Works at M20 SubstationProject in Mina Al-Ahmadi Refinery for KNPC

Electrical and Instrumentation Works at Gathering Center, GC-30 Project for KOC

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Projects Awarded During the Year 2018 :-

● Pipeline Piggable Drip Barrel for KOC Feed Pipelines for New Refinery Project (NRP) with the main contractor for Kuwait Oil Company.

● Design, Engineering, Fabrication and Supply of Air Receiver Vessels and Drain Sump Vessels for Water Management Project in Gathering Centres, GC - 9, 10, 20 & 22, at East Kuwait areas with the main contractor for Kuwait Oil Company.

● Fabrication, Supply and Erection of Structural Steel Works for Water Management Project in Gathering Centres, GC - 9, 10, 20 & 22, at East Kuwait area with the main contractor for Kuwait Oil Company.

● Workshop Support Services for Kuwait Oil Company.

● Design, Manufacture, Testing and Delivery of Shop-Fabricated Tank for Az zour New Refinery Project (NRP) with the main contractor for Kuwait Integrated Petroleum Industries Company.

● Structural, Mechanical, Piping, Electrical and Instrumentation Works for Sulphur Granulation and Conveying Unit in Az zour New Refinery Project (NRP) with the main contractor for Kuwait Integrated Petroleum Industries Company.

● Civil, Mechanical, Electrical, Instrumentation and Telecom Package for Interim Crude and Fuel Gas Supply for Az zour New Refinery Project (NRP) with the main contractor for Kuwait Integrated Petroleum Industries Company.

● Design, Fabrication & Supply of Drip Barrels for Upgrade of Gas & Condensate Network at East Kuwait Area-II with the main contractor for Kuwait Oil Company.

● Procurement, Construction, Commissioning and Maintenance for the Upgrade of Fuel Supply Infrastructure in Sabiya Power Station for Ministry of Electricity & Water.

● Procurement, Construction, Commissioning and Maintenance for the Upgrade of Fuel Supply Infrastructure in Doha West Power Station for Ministry of Electricity & Water.

● Resident contract for mechanical and structural works for EQUATE Petrochemical Company.

● FGC control system upgrade of Sabiya Power and Water Distillation Station for Ministry of Electricity & Water.

● Annual maintenance works for mechanical equipment at Az zour South Power Station for the Ministry of Electricity & Water.

● Supply of Pig Launchers & Receivers for Water Management Project in Gathering Centres, GC 9, 10, 20 & 22 at East Kuwait area with the main contractor for Kuwait Oil Company.

● Supply of Inlet Separator, Treater, Compact Electrostatic Coalescer (CEC), Gas Scrubber, Mares Tail Units and Hydraulic Induced Gas Floatation (HIGF) Pressure Vessels for Water Management Project for Gathering Centres, GC 9, 10, 20 & 22, at East Kuwait area with the main contractor for Kuwait Oil Company.

Mechanical, Electrical,Instrumentation and Telecom Works for Az zour Refinery Project

(EPC Package-4)

SMPEI works for Sulphur Granulation and Conveying Unit at Az zour Refinery Project

(EPC Package 3)

ANNUAL REPORT 2018

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ONSHORE & OFFSHORE OPERATIONS:


● Maintenance Dredging of Seawater Intake Channel at Subiya Power & Water Distillation Station for the Ministry of Electricity & Water.

● Offshore works for Single Point Mooring (SPM) Buoy Refurbishment & Chain Replacement at Mina Saud with M/s (HEISCO) for Chevron (Saudi Arabia).

● Civil Works Package # 3 for the EPC & C of Gas Train 5 project at Mina Al Ahmadi Refinery with M/s (HEISCO) for Kuwait National Petroleum Company.

● Civil Works for the MGT (Manifold Group Trunk Line) System for New GCs 29, 30 & 31 at North Kuwait with M/s (HEISCO) for Kuwait Oil Company.

Projects Ongoing During the Year 2018 :-

● Mubarak Al Kabeer Seaport Phase-1, Stage-1, Design and Construction of Roads, Rails, Bridges and Soil Improvement works M/s (China Harbour Engineering Company Limited – Gulf Dredging & General Contracting Company – Galfar Co.- Joint Venture) for the Ministry of Public Works.

● Trenching, Backfilling and Rock dumping works for the subsea pipeline - Gas Condensate Export System Project at Al Khafji with the Main Contractor for Kuwait Gulf Oil Company.

● Dredging of 1.5 million m3, Supply and Installation of Steel Floating Pier - Design, Build, Piers & Dredging Project at Umm Qasr Port-Iraq, for the United States Army Corps of Engineers.

● Rock Revetment works at Shuwaikh and Subiya area for Sheikh Jaber Al Ahmed Al Sabah Causeway Project with main contractor for Ministry of Public Works.

● Civil & Building works for Doha Seawater Reverse Osmosis (SWRO) Plant, Phase-1, Project with main contractor for Ministry of Electricity & Water.

● Design, Construction, Completion, and Maintenance of Chalets and Cafeteria of Police Officers Club at Abu Al Hasaniya for the Ministry of Interior.

Civil Works for the MGT (Mainfold Trunk Line)System for New GC's 29,30 & 31 at North Kuwait

Steel Floating Pier - Design,Built,Piers & DredgingProject at Umm Qasr Port - Republic of Iraq

Rock Revetment Works for Sheikh Jaber Al Ahmed Al Sabah Causeway Project, Kuwait

GULF DREDGING & GENERAL CONTRACTING CO. K.S.C (Closed)(Subsidiary)

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● Construction, completion and maintenance of 160 New Houses in South Ahmadi area for Kuwait Oil Company.

● Civil works for Lower Fars Heavy Oil Development program Phase-1 Project, with main contractor for Kuwait Oil Company.

● Civil & Building works for the New Gathering Center (GC-30) at North Kuwait with M/s (HEISCO) for Kuwait Oil Company.

● Civil Works for the New Gathering Center (GC-29) in North Kuwait area with M/s (HEISCO) for Kuwait Oil Company.

Design, Construction, Completion, and Maintenance of Chalets and Cafeteria of Police Officers Club at Abu Al Hasaniya, Kuwait

Civil & Building Works for Doha Seawater Reverse Osmosis (SWRO) Plant, Phase-1, Project at Doha, Kuwait

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● Civil Works for the Clean Fuel Project MAB Area 2 Package 1&2 (additional works) at Mina Abdullah, with the main contractor for Kuwait National Petroleum Company.

Projects Awarded during the Year 2018:-

● Mubarak Al Kabeer Seaport Phase-1, Stage-1, Removal of the temporary steel bridge with M/s (HEISCO) for Ministry of Public Works.

● In-Kind Replacement of South Sea Tide Water Fence on the Sea Side, MAB Refinery - Standby Contract for Project Services - Project Department with the main contractor for Kuwait National Petroleum Company.

● Expansion Program, Package-1, Enabling and Marine works for The Scientific Center of Kuwait (TSCK).

Construction of 160 New Houses in South Ahmadi for Kuwait Oil Company

Civil & Building Works for Gathering Center GC-30 in North Kuwait for Kuwait Oil Company

ANNUAL REPORT 2018

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In conclusion, the Board of Directors expresses its deep appreciation and thanks to His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah and His Highness the Crown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah and His Highness the Prime Minister Sheikh Jaber Al-Mubarak Al-Sabah and all Ministries and Official Departments of the State and to all Companies, Establishments, Institutions and Banks which have cooperated with the Company during the year 2018.

In particular, we express our thanks and appreciation to all the personnel of the Company and wish them continued progress and success.

BOARD OF DIRECTORS

FINANCIAL HIGHLIGHTS● Revenue increased from KD 170.273 Million in

2017 to KD 181.427 Million in 2018, reflecting an increase of 6.55%.

● Gross Profit increased from KD 17.748 Million in 2017 to KD 18.031 Million in 2018.

● General and administrative expenses decreased from KD 5,920,205 in 2017 to KD 4,959,721 in 2018.

● Net Profit increased from KD 6,065,604 in the year 2017 to KD 9,641,577 in 2018.

● Earnings per share increased from 33.67 fils in 2017 to 53.50 fils in 2018.

ANNUAL REPORT 2018

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Heavy Engineering Industries and Shipbuilding Company K.S.C. (Public) and its Subsidiaries

CONSOLIDATED FINANCIAL STATEMENTSAND AUDITOR'S REPORT

31 DECEMBER 2018

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018(All Amounts in Kuwaiti Dinars)

Heavy Engineering Industries and Shipbuilding Company K.S.C. (Public) and its subsidiaries

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CONSOLIDATED STATEMENT OF INCOMEAS AT 31 DECEMBER 2018(All Amounts in Kuwaiti Dinars)

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - YEAR ENDED 31 DECEMBER 2018(All Amounts in Kuwaiti Dinars)


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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - 31 DECEMBER 2018(All Amounts in Kuwaiti Dinars unless otherwise stated)


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HEISCO AT A GLANCE

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Heavy Engineering Industries & Shipbuilding Co. K.S.C. (Public), [HEISCO] is a leading Engineering, Procurement and Construction (EPC) contracting company in the State of Kuwait. It delivers the diversified range of services to oil & gas construction, power, distillation & desalination, refineries, petrochemical industries, process equipment manufacturing, civil construction, shipbuilding, ship repair, dredging, marine construction and industrial maintenance.

HEISCO’s commitment to its clients is proven by its quality management system certification to ISO 9001:2015, Occupational Health & Safety Management System certification to OHSAS 18001:2007 standards and the Environmental Management System to ISO 14001:2015 standards.

Fields of Activity:● Oil & Gas Construction Operations

● Shipyard Operations

● Industrial Maintenance Operations

● Fabrication Operations

● Trading Operations

● Onshore and Offshore Operations (through Gulf Dredging & General Contracting Co. K.S.C. (Closed), a subsidiary company).

Oil & Gas Construction

Oil & Gas Construction Operations was established in 1982 with a view to expand and diversify HEISCO’s activities into oil & gas, petrochemical, power and water desalination sectors. Its services cover a variety of clients and a wide range of projects with particular emphasis on expertise, experience, capabilities, and quality across all engineering and management functions.

Activities in brief:

Mechanical Operations

Oil & Gas Operations

HEISCO AT A GLANCE

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Flowlines

HEISCO executes its works from field survey and site investigation to the installation of flowlines and commissioning. It performs planning, procurement, supply of materials, supervision, fabrication, inspection, and testing for the flowlines and pipelines of carbon steels and RTP, the extension of headers/manifolds and construction of new remote manifolds with all associated civil works.

Pipelines

HEISCO prides itself on the extensive experience in Engineering, Procurement and Construction of pipeline projects in Kuwait keeping safety an important cornerstone. The company is an expert in the large-diameter and long-distance pipeline constructions.

HEISCO has executed such pipeline projects with various sizes and lengths in Kuwait. It successfully completed a subcontract of Low Sulphur Fuel Oil (LSFO) project having 200 km of pipeline with a diameter of 48”, and 600 km of pipeline with the diameter of various sizes up to 56” for Kuwait Oil Company.

Similarly, HEISCO successfully completed a contract of Engineering, Procurement, Construction and Commissioning of Heavy Fuel Oil Pipelines having 120 km. of 20” diameter pipelines in two parallel lines laid from Mina Ahmadi Refinery Pumping Station to Doha Power Station for Ministry of Electricity and Water.

Plants

HEISCO has strong capabilities to execute major plant construction projects. With highly qualified, experienced and skilled manpower and a large fleet of construction equipment, HEISCO successfully Pipelines

Flowline

Plants

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carried out construction activities from concept to commissioning, committing to high-quality standards and efficiency. It works under extreme environmental conditions to execute projects focusing on employees’ health and safety and environmental protection and offers multidisciplinary services. HEISCO’s execution excellence and proficiency ensure on-time delivery within the budget.

The services involve project management, construction management, site preparation, temporary facilities, civil construction works, piping and structural fabrication, mechanical construction works, electrical and instrumentation works, start-up, commissioning assistance, etc.

Civil Operations

Civil construction is crucial to a project’s success. HEISCO offers years of extensive experience in civil construction and development. Our professional civil construction team, with dedicated technologies and equipment, deals with the design, construction and maintenance of industrial civil construction and infrastructure.

The civil work ranges from excavation, backfilling and trenching to road and asphalt works, construction of all kinds of buildings for control rooms, sub-stations, process and utility stations, construction of various types of foundations for static and rotary equipment, pipe rack and pipe supports and fabrication and installation of equipment platforms.

Electrical & Instrumentation Operations

HEISCO is a recognized leader in electrical, instrumentation and telecommunication services and provides a wide range of services such as engineering, construction, calibration, testing, pre-commissioning, commissioning, maintenance, and troubleshooting.

It delivers essential support and solution for construction, operation & maintenance, oil & gas, and power projects in the industry. The Electrical and Instrumentation division is managed by highly qualified engineers and technicians and is capable of carrying out precise jobs of any kind using HEISCO’s facilities equipped with sophisticated instruments, equipment, tools, etc. It has vast experience in large construction projects in electrical, instrumentation, telecommunication, and cathodic protection systems.

Electrical & Instrumentation Operations

Civil Operations

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Tanks Operations

With decades of experience in manufacturing and successful installations of storage tanks, HEISCO is capable of manufacturing tanks of complex plate structures. Today, HEISCO is the only Kuwaiti company to possess KOC approval for EPC of storage tanks up to the capacity of 500,000 bbls.

HEISCO is the first Kuwaiti company that built the largest tank ever constructed by a local company in Kuwait. A storage tank of 64.8 m in diameter and 19.5 m height has been constructed for Lower Fars Heavy Oil Development Program Phase-1 Project in South Tank Farm with the Main Contractor for Kuwait Oil Company.

It has complete in-house facilities for full turnkey projects from design, detailed engineering, procurement and fabrication of tank plates to site erection, installation of interconnecting pipe-works, electrical connections, instrumentation, painting, lining, and coating.The international standard codes followed are API 650, API 620 or equivalent standards complete with all required associated standards such as AWS A.I, ASME IX etc., surface preparation to Swedish Sa or SPCC specifications with painting, coating or lining.

Industrial Maintenance

HEISCO’s Industrial Maintenance Operations is recognized as one of the main providers of value-added services to prestigious clients such as MEW, KOC, KNPC, KGOC, PIC, EQUATE, and JO. The Industrial Maintenance team has acquired vast experience, expertise, and proficiency in complete industrial services. It provides technical support and solutions with high standards of quality and safety in a cost-effective way.

Maintenance Operations

HEISCO is competent in the maintenance of oilfield upstream facilities, various insulation and cladding works, sludge treatment, etc. It is capable of undertaking services such as maintenance and troubleshooting of rotary equipment, stationary equipment, shell & tube and plate type heat exchangers, filters, compressors, repairing and reconditioning of all kinds of valves, overhauling of heavy-duty engines, reconditioning of engine components, repairing of heavy duty radiators, and special machining of critical components by using CNC Machinery.

Tanks Operations Industrial Maintenance

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HEISCO also undertakes complete plant shutdowns, unit-shutdowns on a full responsibility basis. Additionally, our Industrial Maintenance Operations has involved in the supply of professional, technical and administrative manpower to KNPC and KJO. In an industry that demands a quick response, our experienced team is available 24/7. It ensures safe, efficient and quality services while maintaining low costs.

Power Plant Operations

With extensive experience in operation and maintenance of power plants and with a wide range of equipment, HEISCO executes complete onsite maintenance of power stations. It includes a variety of services - annual shutdown works for boilers, chemical cleaning operations, major overhauling of steam turbines, rehabilitation of steam turbines and gas turbines, boiler combustion efficiency improvements, mechanical, electrical, instrumentation and control systems, maintenance of water distillation units, re-carbonation plant, fuel oil pumping station, compressors, pumps, distillation and intake facilities, ID/FD/GR fans and blowers, maintenance and re-tubing of plate type and shell & tube type heat exchangers and fin fan coolers, condensers, oil and air coolers, etc. Our services cover all aspects and activities necessary to run a power plant in a safe, reliable, compliant, efficient and most economical manner.

HEISCO possesses a comprehensive in-house Maintenance Workshop Facility equipped with most modern machinery. To deal with heavy rotating machinery components, such as turbine parts, a new state-of-the-art heavy machinery workshop has been built. The CNC vertical turning lathe and 5 Axis CNC horizontal boring machines installed in the workshop have the highest capacity of its kind in the Middle East.

Fabrication Operations

HEISCO’s commitment to excellence is not only evident in the multiple awards received and the professionalism of its staff but also the ambition to grow and further increase quality and efficiency of its current business units.It makes constant improvements in the fabrication facilities to provide its clients with improved services.

Highlights:

● The only Kuwaiti company approved as the manufacturer of indirect type Oil-fired Heaters.

Power Plant Operations

Maintenance Operations

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● Design and engineering capabilities with the latest software including 3D and analysis such as AME Tank V 11.5.5, Cadworx Plant Design Suite-2018, Nozzle Pro V.12, Coade Tank-V.9.0, Coade CAESAR V10.0, AutoCAD-2019, Mat 3d V6.4.0 and Pipe Net vision 1.9.COMPRESS, PVElite, TEKLA V20, STADD PRO V8i, Raptor, EPCPROMAN, Iso-Builder Piping, RAMP Piping, AUTOCAD, G-Star, LANTEK Expert Cut II Plus and Cut Logic 1D.

● Independent in-house NDE and Material Testing Facility.

In addition to Quality Management System Certification ISO 9001:2015 and Occupational Health and Safety Management System Certification to OHSAS 18001:2007 standards, the workshops facilities are certified by the American Society of Mechanical Engineers (ASME) and the National Board of Boiler and Pressure Vessel Inspectors. HEISCO is authorized to put the U, U2, S, PP and NB R stamps to its products and the API Monograms for separators (API - 12J).

The Company offers an array of products such as specialized pressure vessels, industrial modular structures, process equipment including skid packages, separators, desalters, scraper traps/pig launchers and receivers, heaters, reactors, power

boilers, column and towers, shell and tube heat exchangers, shop fabricated tanks, pre-fabricated pipe spools, etc. HEISCO is the first Kuwaiti company having the fully automated piping spool fabrication system in Kuwait. It has the dedicated facilities for fabrication of large pre-fabricated pipe spools for mega projects.The company fabricates pipe spools in stainless steel 304, 304L, 316, 316L, duplex stainless steels, duplex/super duplex/lean cupro-nickel, titanium, Incoloy, Inconel, 6 Mo Steels, Monel. Fabrication of pipe spools also is done in carbon steel, low alloy steels and low-temperature carbon steel.

Trading Operations

HEISCO’s dynamic sales and marketing forces are charged with responsibilities for promoting and marketing the products, equipment, and services of leading international companies to the local marine Industry, oil & gas, power and water desalination sectors. HEISCO offers its customers an unrivalled service of experience, technical competence, and reputation backed by after sales service from the formidable engineering and maintenance resources of our combined operations.

Fabrication Operations

Trading Operations

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Trading Operations promotes a variety of industrial products and also the interests of sponsorship for recognized international EPC contractors in Kuwait.

Some of the products promoted are boiler and turbine spares, SMLS pipes (line pipes and flow pipes), valves (ball, gate, globe and check), RTP pipes and fittings, steel abrasives (steel grits and shots), blasting and painting equipment, welding equipment and gas detection instruments, coating and NDT instruments, NDT inspection equipment for tanks, pipes and vessels, hot tapping, leak sealing, composite pipe repair and nozzle testing, wellhead Christmas tree, SSV and a complete range of drilling and wellhead equipment.

Quality Control & Testing Services

To ensure the fulfillment of its contractual safety and legal obligations, HEISCO has set up an entirely independent Quality Control Department in accordance with International Quality Systems. HEISCO’s Quality Management System is certified to ISO 9001:2015 and is in compliance with API-Q1 specifications.

Today, HEISCO is one of the leading companies that provide QC services to various clients, contractors in Oil & Gas, Refineries, Petrochemicals and Power Sectors in Kuwait.

HEISCO has cutting-edge technology, the most modern testing equipment, highly skilled NDT technicians, inspectors and inspection engineers to meet project requirements related to Quality Control, Inspection, and NDT Services.

Testing & Calibration Laboratory

HEISCO’s Testing & Calibration Laboratory, initially established to provide in-house testing & calibration services, grew rapidly to cater its services to external customers for oil & gas, petrochemicals, infrastructure, electrical, power and water sectors. The Testing and Calibration laboratory has the capability to provide a wide range of competitive and comprehensive testing and calibration services for in-house, on-site and third-party inspection for the specialized instruments. It has the highly qualified and trained professional team to

Quality Control and Testing

Testing & Calibration Laboratory

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Galvanizing Plant

perform the Testing & Calibration services with high quality, accuracy and reliability to various In-house projects/ External Customers.

Testing and Calibration Laboratory is certified to international standards ISO 9001 Quality Management System, and it is accredited for technical competence in the fields of calibration and mechanical testing in accordance with the recognized international standard ISO/IEC 17025 by American Association for Laboratory Accreditation (A2LA).

Galvanizing Plant

HEISCO has built a state-of-the-art Galvanization plant to cater to the requirements of its various clients and customers for oil & gas, petrochemicals, infrastructure, electrical, power and water sectors. Based in Shuaiba industrial area, it operates the most highly automated galvanizing plant with the lowest emissions of any hot dip galvanizing plants in Kuwait.

Galvanization is one of the best forms of corrosion protection. It is the process of applying a protective zinc coating to steel or iron to prevent corrosion. HEISCO offers hot-dip galvanizing service to a wide variety of steel components ensuring the best service and quality possible.

With the most modern equipment and environment-friendly technology, HEISCO is capable of galvanizing steel components in large scale. The automated material-handling and processing equipment and remote controlled dipping system deliver a consistent coating for long-life protection against corrosion.

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Shipyard Workshops

Shipyard Operations:

Conveniently located in Shuwaikh deep water harbor, the shipyard is ideally placed to execute ship repair and construction at competitive rates.

HEISCO’s skilled and well trained workforce has the ability to work in both marine and industrial fields.

Together with modern equipment and strong yard management team, HEISCO provides the perfect combination to ensure excellent quality and delivery on time.

HEISCO is proud of its long reference list including major local, regional and international clients. HEISCO is an international ship repair & shipbuilding company which aims to be the leader among Middle East shipyards by utilizing state- of -the-art equipment.

Workshops Equipped with Machines such as:

● LAYHER Scaffolding Marine Materials

● Pneumatic Paint Agitator (Air Mixer)

● Misc. Types of Vapor Abrasive Blast Equipment

● GRACO Airless Paint Spray Machine

● Jet Unit 500 Bar (Trail Jet)

● (FALCH) Base Jet 500 Bar

● (FALCH) Trail Jet 2500 Bar

● Cable Tags Portable Embossing Machine

● Refrigerator System Analyzer

● Ajax Centre Lathe Machine 10m Length

● Shaft Straightness Machine 10000 Psi

● Laser Shaft Alignment Machine

● Machine Condition Advisor Machine

● Stick Plasma And Mig Welding Machines With Wire Feeder

● Steel-Grit Abrasive Closed Blasting Room

● Down-Draft Dry-Type Closed Paint Booth

● CNC Plasma / Oxy-Acetylene Plate Cutting Machine

● Electronic Power Frequency Converter 60Hz / 440V

● Oil Filtration & Flushing System

● SCHENCK Propeller & Rotor Balancing Machine (HM40U 3 Tons)

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Facilities & Services:● Floating dry dock, 190 meters, for vessels up to 35,000 ton dwt.

● Syncrolift accommodates vessels up to 5,000 ton dwt.

● 5 Berths, ranging from 90 meters to 230 meters with cranes.

● 5 Cranes, 10 to 30 tons, cover the yard areas.

● Afloat repairs.

● Modification and conversion of vessels.

● Shipbuilding of specialized vessels.

● Steel and Aluminium Construction.

● Underwater and Diving services following the International Marine Contractors Association (IMCA) standards.

● Repair, testing, calibration of equipment and machinery.

● Jet Propulsion, Repair / Overhauling.

● Agent for International Marine Equipment and Devices Vendors.

Floating Dock

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Civil & Building Works for Doha Seawater Reverse Osmosis (SWRO) Plant, Phase-1, Project for Ministry of Electricity and Water

GULF DREDGING & GENERAL CONTRACTING CO. K.S.C (Closed)

After the privatization of the Government of the State of Kuwait, GD became a subsidiary of the Heavy Engineering Industries & Shipbuilding Co. K.S.C (Public) – (HEISCO).

In the year 1999 GD Management established Civil Construction Division to carryout Civil and Infrastructure works and executed several complexes projects. Since then Gulf Dredging has been classified as Class-I Civil Contractor by the Central Agency for Public Tenders (CAPT) of the State of Kuwait.

Gulf Dredging & General Contracting Company K.S.C (Closed) was formed in 1975 as a Joint Shareholding Company of the Government of Kuwait and Ballast Nedam Company of the Netherland, to cater to the growing requirement of dredging in and around Kuwait. Starting off the business solely in dredging, Backhoe Dredger and Allied equipment, the Company concentrated in the Capital Dredging Projects in Kuwait. Later in 1980, the Company diversified into other areas of Marine Construction.

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Activities in Brief:

Offshore Operations:● Dredging and Reclamation

● Construction of Ports, Harbors & Marinas

● Construction of Wharfs and Berths

● Breakwaters and Revetments

● Offshore Pipelines and Intake/Outfall Structures

● Offshore Cable Pulling Works

● Bathymetric, Hydrographic and Topographic Surveys

● Piling Works

● Marine Transportation of Bulk Cargo

● Various Maintenance Services

Onshore Operations:● Construction and Infrastructure Works

● Steel Structure Works

● Soil Treatment

● Dewatering

● Piling Works

● Value Engineering

Gulf Dredging has its presence in the following Countries:

● Kingdom of Saudi Arabia

● State of Qatar

● Sultanate of Oman

● Republic of Iraq

Maintenance Dredging of Seawater Intake Channel at Subiya Power & Water Distillation Station for the Ministry of Electricity & Water.

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Resources

Offshore Equipment:

Gulf Dredging is well equipped with Offshore Equipment comprising of:

● Cutter Suction & Dipper Dredgers

● Tug Boats

● Work Boats

● Survey Boats

● Fuel Supply Boats

● Multicat Boat / 7 ton crane / fuel supply

● Jack-up Barge (Self Elevating Platform)

● Split Hopper Barges

● Cargo Barges (Flat Top) up to 14000 Mt

● Flat Top Barges (for Marine Construction)

● A Frame Barge for fuel supply and anchor handling

● Diving Barges

● Anchor Pontoons for Dredger Floating Pipelines

● Speed Boats

Certifications:

● Class-I in Civil Construction Works & Class-IV in Roads & Infrastructure works by Central Agency for Public Tenders.

● Approved Civil & Marine Contractor with Kuwait National Petroleum Company.

● Approved subcontractor for Seawater Intake and Outfall works by Ministry of Electricity and Water.

● Member of IMCA (International Marine Contractors Association)

● ISO 9001:2015

● OHSAS 18001: 2007

Jackup Barge

Cargo Barge

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Onshore Equipment (Crawler Cranes)

Onshore Equipment :

GD is well equipped with Land Equipment comprising of:

● Heavy Lifting Mobile & Crawler Cranes (Capacity from 50 ton to 280 tons)

● Earth Moving Equipment, Bulldozers, Wheel Loaders, Graders and Excavators

● Piling Rigs for Sheet, Concrete and Steel Tubular Piles with capacity to drive up to dia 2850 mm

● Auguring and Boring Equipment

● Dewatering Equipment

Logistics

● Capable of Sea Bulk Cargo Transport using Barges with Capacity up to 14000 Mt

● Capable of Land Transport using Fleet of Rock Body Trucks / Trailers

● Berthing and Offloading Facility at Shuwaikh Port

Onshore Equipments

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