What has been the outcome since Shamal Az-Zour completed its IPO in 2019?

Since the completion of our IPO in 2019, we have achieved significant milestones. The IPO concluded at the end of 2019, and in August 2020, we were successfully listed on the Premier Market of the Kuwait Stock Exchange (Boursa Kuwait). As a result, we have been able to declare slightly over KWD63 million in dividends to our shareholders. The transition from a private to a public company required diligent efforts from the Shamal team to manage the additional audit, reporting, and compliance requirements. Despite the challenges posed by the pandemic, our operations were minimally impacted because the demand for utilities remained steady, if not higher. Our operations and maintenance teams at the Az-Zour North Phase One plant played a crucial role in meeting the increased demand. The dedication and sacrifices of our teams ensured the uninterrupted generation of power and water. It is worth noting that Shamal Az-Zour Al-Oula is the only company listed in the utility sector of the Boursa Kuwait and the only independently owned water and power project in Kuwait. Our customer, the Ministry of Electricity & Water, heavily relies on us, and we make a significant contribution to Kuwait’s power and water supply. Typically, we meet around 10% and 20% of Kuwait’s total demand for power and water, respectively, and there are times when our contribution exceeds these percentages. This reflects the high availability and reliability of our plant and the commitment of our project and site teams.

How would you assess the need to increase the privatization of the utility sector in Kuwait?

The privatization of the utility sector in Kuwait has progressed at a slower pace than initially anticipated. Despite the contract for the Az-Zour project being signed in 2013 with the expectation of a broader privatization rollout, Shamal remains the only independent power and water project in Kuwait after nine years. Several factors may have contributed to this slower rollout, including the low adoption of the public-private partnership (PPP) framework by foreign investors and the global pandemic. Investors typically seek political stability, which is an area where Kuwait faces challenges. However, there is positive news as the bidding documents for Az-Zour North Phase Two and Three have been prepared and published, indicating progress in increasing privatization efforts in the utility sector.

What has Az-Zour recently worked on regarding the digitalization of systems?

We prioritize operating efficiencies and increasing our profits, and digitalization plays a crucial role in achieving these goals. We have implemented digital tools to assist our on-site operators, including mobile field technologies that enable them to gather data from the operating plant. This data is stored, analyzed, and reviewed to provide early warning signs of any potential issues, facilitating maintenance planning and cost management. At the governance level, we have introduced digital board software, which aids in managing board meetings and minutes. We are open to exploring opportunities to digitize business processes to gain efficiencies. With our expertise and the utilization of digital technology, we are confident in introducing measures to enhance industrial process efficiency.

What is Az-Zour doing to promote Kuwait’s Vision 2035?

Kuwait’s Vision 2035 aligns with the United Nations’ Sustainable Development Goals (SDGs), particularly in the areas of infrastructure development and advancing human capital. As a plant primarily fueled by gas, we are mindful of emissions and prioritize minimizing them by adopting the best available technology. Our plant adheres to all regulatory standards, including Kuwait’s Environment Protection Agency standards. We continuously monitor our emissions and hold a license based on compliance with these standards. Furthermore, we invest in our human capital by providing comprehensive training to our staff and adhering to the latest health and safety standards. We actively support education initiatives and strive to create employment opportunities that contribute to Kuwait’s Vision 2035.