KUWAIT: Chairman of the Board of Gulf Cable and Electrical Industries Co Bader Nasser Al-Kharafi said the company is always considering expansion opportunities, and gets involved in feasible ones. He said it is currently considering involvement in a copper factory project in Jordan. Kharafi, who was speaking after the company’s general assembly, said the company is committed to paying its debts, and at the same time it is going through an expansion even if there is a need to borrow, affirming that the company has a clean sheet and does not face any hurdles.
Kharafi said the company’s products meet the highest specifications and quality. He said Gulf Cable is exerting its best efforts to have its products included with the subsidized construction material. Kharafi said the company sent a request in this regard to the ministry of commerce which expressed its readiness and cooperation through Minister Abdelmohsen Al-Mudej, adding that it is looking forward to getting the final approval as soon as possible. Kharafi commended the minister’s interest and his positive response to support national products, and anything that supports the national economy. Kharafi called for hastening the establishment of local projects and speedy decisionmaking on them as well as awarding tenders. He said the period for awarding tenders takes too long and should be shortened, so that “we can go along with the development plan in Kuwait”.
In his remarks in the board of directors’ report, Kharafi said: “Future prediction, providing suitable circumstances for success and presenting training programs and the abundant knowledge in the fields of manufacturing and customer service contributed to the company ending the year with success. A new article in the housing care law grants a person who receives a building loan subsidized material that includes all construction needs, and we hope the commerce ministry and the minister include our national product in the subsidized material list.” He said, “production during 2013 was nearly 62.77 tons, compared with 54.58 tons in 2012, which is an increase of 8.1 tons (15 percent), bearing in mind that the 2013 production included a higher quantity of aluminum cables from 2012 (5,850 tons in 2013 compared to 5,056 tons during 2012), and this explains the increased production. Aluminum cables are lesser in weight and cheaper than copper, and demand in both local and Gulf markets determines the type of material used.” Kharafi said sales during 2013 reached nearly KD 97.87 million, compared to KD 90.47 in 2012, an increase of 8.18 percent despite increased competition in addition to a drop in the average prices of metals during 2013.
As for investments, Kharafi said the company underwrote KD 0.69 million due to the application of accounting standard 39 on the income data of 2013, due to the drop in the value of some investments put up for sale. As for revenues of investment for the same year, they reached around KD 8.61 million in 2013, compared to KD 7.11 million in 2012. He said net profits for 2013 reached around KD 9.97 million, compared to KD 11.42 million in 2012, after deducting around KD 0.55 million for the company’s contribution to the Kuwait Foundation for the Advancement of Sciences, national labor support tax, zakat and board member bonuses. Meanwhile, the general assembly approved all items, including the board’s report and the approval of distributing cash profit for the year ending 31/12/2013 at 30 percent cash, and authorizing the board to buy or sell no more than 10 percent of its shares according to the law.