KNPC‘s first KD1 bln net profit

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BRAVO to our Kuwaiti refining company for its first ever onebillion- dinar net profit for the year ending March 2023, since its inception. Kuwait began its venture in refining in the early 60s. Back then, Kuwait was the first OPEC member and national oil company to invest in refining. About 60 percent of it was owned by the government, and 40 percent by the private sector. Followed by other oil producing countries, Kuwait National Petroleum Company (KNPC) had set examples for joint ventures between government and private owners with courage in using their monies in such an unknown venture.

Today after 60 years, we are rewarding ourselves with the first billion-dinar profit. We owe the fully dedicated employees and management of our two refineries of Mina Abdullah and Al Ahmadi in every sector for such success under the severe diligent environment that is surrounded by all sorts of danger, in every unit and on every inch of the refinery’s premises 24/7.

Last year, with the increased oil prices, the refining margin was pushed to a new level of more than $30 a barrel in some refineries outside the Arabian Gulf region that yields much higher percentages of light products like gasoline, diesel, and kerosene. In our case, we just managed to complete the upgrade of our two refineries to become the most modern, meeting all the advanced market requirements and product specifications, in order to be rewarded with high profits per barrel of refining. On the other hand, Kuwait owns a third new refinery – Al-Zour, which has a production capacity of 615,000 barrels per day and will be onstream soon.

Unfortunately, this one does not belong to KNPC. It is the replacement of Shuaiba refinery, the 1st national one in the region and with all national companies. Such an unwise decision taken by the KPC board just does not make any sense. The board must promptly switch its decision to put Al-Zour refinery back to where it belongs, which is to KNPC, instead of wasting resources, diverting our experienced staff, and duplicating the same function into two separate entities. Time has come for the KNPC board to take the necessary action, and stop such madness of having two separate companies for refining activities. Well done to the KNPC staff and management. Thank you for your efforts, determination, and quality of work. Kuwait is proud of you. We may ask for a profit of KD 1.5 billion for next fiscal year ending on March 24. Congratulations to all of us.

By Kamel Al-Harami
Independent Oil Analyst

email: [email protected]

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