Heavy Engineering Industries and Shipbuilding K S C P : AnnualReport2023English

48 th ANNUAL REPORT 2023

ANNUAL REPORT 2023

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ANNUAL REPORT 2023

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ANNUAL REPORT 2023

CONTENTS
BOARD OF DIRECTORS	4
BOARD OF DIRECTORS REPORT	5-15
INDEPENDENT AUDITOR'S REPORT	17-20
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 2023	21
CONSOLIDATED STATEMENT OF INCOME 2023	22
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 2023	23
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 2023	24
CONSOLIDATED STATEMENT OF CASH FLOWS 2023	25
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023	26-55
HEISCO AT A GLANCE 2023	56-73

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ANNUAL REPORT 2023

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ANNUAL REPORT 2023

BOARD OF DIRECTORS REPORT FOR 2023

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

TO OUR SHAREHOLDERS,

The Board of Directors of the Company conveys its greetings and expresses its deep appreciation to the esteemed shareholders for thier continued interest in the achievements of the Company in all sectors.

The Board of Directors is pleased to submit the 48th Annual Report which sets out the activities and performance of the Company during the Year 2023, which also contains the main indicators of the consolidated Financial Statements of Heavy Engineering Industries & Shipbuilding Company K.S.C (Public) and its subsidiaries, Gulf Dredging and General Contracting Company K.S.C (Closed) and HEISCO for Technical Specialized Manpower Supply Co. (W.L.L) for the year ended on 31/12/2023.

SHIPYARD OPERATIONS:

Projects Completed During the Year 2023:-

1. Dry-Dockingand Repairs of various vessels 17 Nos. for Kuwait Oil Company.
2. Dry-Dockingand Repairs of various vessels 2 Nos. for Kuwait Coast Guard,Ministry of Interior.
3. Dry-Dockingand Repairs of various vessels 10 Nos. for Kuwait Coast Guard, Ministry of Interior.
4. Dry-Dockingand Repairs of various vessels 20 Nos. for Kuwait Navy Force,Ministry of Defence.
5. Dry-Dockingand Repairs of various Fire Fighting Vessels 8 Nos. for Kuwait Fire Force.
6. Dry-Docking& Afloat Repairs of various vessels (i.e. Barges, Tugs, Crew Boats, Dipper Dredger & Jack-up Barge) 13 Nos. for M/s Gulf Dredging and General Contracting Company, Kuwait.
7. Dry-Dockingand General Repairs of various vessels i.e. Barges, Tugs and Crew Boats of 6 Nos. for M/s Hyundai Engineering & Construction Co. & Hyundai Engineering & Steel Industries, Kuwait.
8. Dry-Dockingand Repairs of several Pleasure Boats, Yachts 9 Nos. for various Clients.

Preservation Works of Various Vessels at the Repair Bays

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ANNUAL REPORT 2023

Alongside Repairs of Various Vessels for Local and International Clients

9. Underwater Diving Assistance for Stop Log Installation at Doha West Power Station for M/s Al- Dhow Engineering General Trading & Contracting Company,Kuwait, for the Ministry of Electricity & Water and Renewable Energy.

10.Dry-Docking and Periodic Overhaul of various vessels 2 Nos. for M/s Al-Khafji Joint Operations, KSA.

11.Dry-Docking and General Repair Works of various vessels i.e Ocean Going Tug Boat M.V. "Challenger" and Tug Boat M.V. "Response" for M/s Jawharat Al Khaleej Shipping, UAE.

12.Dry-Docking and General Repair Work of vessels Catamaran "Umm al Khair" and Ro-Ro Ferry "Obu al Khair" for IKARUS United Marine Services, Kuwait.

13.Dry-Docking and General Repair Work of M.T. "FMT EFES" for M/s SIA FMT Shipmanagement, Latvia.

14.General Repair Works of various vessels 7 Nos. for

KOC vessels for M/s Grandweld Shipyard, UAE.

15.Dry-Docking and General Services of M.V.

"Almostakshif" for M/s Kuwait Institute for Scientific

Research,Kuwait.

16.Supply of Marine Fleet Staff for Kuwait Oil Company towards Operation, maintenance and general upkeep of Kuwait Oil Company Marine Fleet.

17.Maintenance, Installation & Supply of Spare Parts for Vessel "Beeah-1" for Environment Public Authority (EPA), Kuwait.

18.Supply of Wartsila Special Tools for Kuwait Oil Company.

Projects Ongoing During the Year 2023:-

1. Dry-Dockingand Repairs of Various Vessels for Kuwait Oil Company.
2. Dry-Dockingand Repairs of Various Vessels for Kuwait Fire Force.
3. Repair and Maintenance of the supporting Equipment on Navy Force Boats (Kuwait Navy), for Ministry of Defence, Kuwait (4 Years Contract).
4. Dry-Docking,Installation of new Systems and Equipment of private Yacht named Magellan, Kuwait.
5. Underwater Strainer Cleaning for Marine
   Maintenance Services at MAA Refinery for HEISCO
   Oil & Gas Operations for KNPC.
6. Diving Operations for the underwater Survey of Intake Channel at Az-zour South Power Station with HEISCO Oil & Gas Operations for Ministry of Electricity and Water & Renewable Energy.

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ANNUAL REPORT 2023

Underwater Propeller Polishing

1. Dry-dockingand Repairs Block Agreement for KOTC Nakilat Service Boats for M/s Kuwait Oil Tanker Company, Kuwait.
2. Marine Construction and Repair Kuwait Navy Base, contract with M/s Gulf Dredging & General Contracting Company K.S.C., Kuwait (End User - United States Marine Inc. - USMI, USA).
3. Provision of Offshore Support Services for Marine Operations (For 5 years) for M/s Kuwait Oil Company, Kuwait.

10.Underwater Diving Services at Doha East Power Station for M/s KCC Engineering & Contracting Company (KCCEC), Kuwait.

11.Maintenance, Repair, Installation and Supply of Spare Parts for Maritime Patrol Boats, for M/s Kuwait Coast Guard, Ministry of Interior.

12.Dry-Docking and Periodic Overhaul of various vessels 2 Nos. for M/s Al-Khafji Joint Operations, KSA.

13.General Repair Works for New Generators Cooling System Sea Tubes for M/s Grandweld Shipyard, UAE.

Projects Awarded During the Year 2023:-

1. Rehabilitation of Marine Unit Trailing Suction Hopper Dredger "Tahreer", for M/s General Company for Ports of Iraq, Iraq.
2. Provision of Marine Fleet Staff for Marine Operations, (for 5 years) for M/s Kuwait Oil Company, Kuwait.
3. Operation & Maintenance Support Services for KOC Offshore Facilities Vessel, (for 5 years) for M/s Kuwait Oil Company, Kuwait.

1. Maintenance, Repair, Installation and Supply of Spare Parts for Maritime Patrol Boats, for M/s Kuwait Coast Guard (Ministry of Interior).
2. General Repair Works for New Generators Cooling System Sea Tubes for M/s Grandweld Shipyard, UAE.
3. Dry-Dockingand Periodic Overhaul of Vessels, Contract No. HQ755TM22 for M/s Al-Khafji Joint Operations, KSA.
4. Dry-Dockingand General Services of M.V.
   "Almostakshif" for M/s Kuwait Institute for Scientific
   Research,Kuwait.
5. Additional Funding and 6 months extension of Contract No. 2020/2019/33 for Dry-Docking and Repairs of Various vessels for M/s Kuwait Fire Force.
6. Underwater Diving Services at Doha East Power Station for M/s KCC Engineering & Contracting Company (KCCEC), Kuwait.

10.Dry-Docking and General Repair Works of various vessels i.e Ocean Going Tug Boat M.V. "Challenger" and Tug Boat M.V. "Response" for M/s Jawharat Al Khaleej Shipping, UAE.

11.Dry-Docking and General Repair Work of M.T. "FMT EFES" for M/s SIA FMT Shipmanagement, Latvia.

12.Underwater Diving Assistance for Stop Log Installation at Doha West Power Station for M/s Al- Dhow Engineering General Trading & Contracting Company,Kuwait.

13.Dry-Docking and General Repair Work of vessels Catamaran "Umm al Khair" and Ro-Ro Ferry "Obu al Khair" for IKARUS United Marine Services, Kuwait.

Repair and Maintenance of Various Vessels at the

Floating Dock

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ANNUAL REPORT 2023

HEISCO Shipyard showcased its Built-up Stand at the Seatrade Maritime & Logistics Middle East Exhibition

which took place from 16-18 May 2023 at the World Trade Center in Dubai

Agreements & Other Achievements during the Year 2023:

1. New Representative Agreements/ Service Agreement with Local and International Companies.

2. Renewal/ Amendments of Representative Agreements with Local and International C o m p a n i e s .

1. Membership Renewal of International Marine Contractors Association (IMCA).
2. HEISCO's Shipyard renewal of registration with the US Federal Government's in the System for Award Management (SAM).
3. New Non-Disclosure Agreement/ Pre-Bid Agreement/ Memorandum of Understanding with Local and International Companies for the existing/ upcoming potential projects.
4. Renewal/ Amendments of Non-Disclosure Agreement/ Teaming Agreement/ Memorandum of Understanding with Local and International Companies for the existing/ upcoming potential projects.

1. Marketing Campaign carried out by publishing HEISCO Shipyard advertisements in various local/ international magazines, handbooks and websites. Also, updating the company website regularly.
2. HEISCO Shipyard successfully participated as an exhibitor in the Seatrade Maritime & Logistics Middle East Exhibition held on 16-18 May 2023 at World Trade Centre, Dubai (UAE).
3. HEISCO Shipyard will participate for the upcoming 31st SMM (Shipbuilding, Machinery and Marine Technology) Exhibition, the world's leading International Maritime Industry Trade Fair that will be at Hamburg, Germany on 03-06 September 2024.

10.HEISCO Shipyard reserved stand space for the upcoming SMLME (Seatrade Maritime & Logistics Middle East) Exhibition that will take place at the Dubai World Trade Centre, UAE on 6-8 May 2025.

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