nd ANNUAL REPORT 2017 - Heisco · HEISCO Shipyard is one of the sponsors at the Seatrade Maritime Awards Middle East,Indian Sub-continent & Africa held on 9 October 2017 at Joharah

ANNUAL REPORT2017

42nd

ANNUAL REPORT 2017

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 2017

ANNUAL REPORT 2017

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 2017

CONTENTS

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

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

INDEPENDENT AUDITOR'S REPORT ................................................................. 17-22

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 2017 ...................... 23

CONSOLIDATED STATEMENT OF INCOME 2017 ............................................. 24

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 2017 ............ 25

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 2017 ...................... 26

CONSOLIDATED STATEMENT OF CASH FLOWS 2017 ................................... 27

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2017 ................ 28-49

HEISCO AT A GLANCE 2017 .............................................................................. 52-65

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BOARD OF DIRECTORS

ADNAN MUSAED KHALIFA AL KHARAFIChairman

TALAL JASSIM AL-KHARAFIVice Chairman

HUSSAIN MURAD BEHBEHANIDirector

AZZAM ABDUL AZIZ AL FULAIJDirector

GHAZI AHMAD AL MIJREN AL ROUMIDirector

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BOARD OF DIRECTORS REPORT FOR 2017

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 42nd Annual Report which sets out the activities and performance of the Company during the Year 2017, 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 31.12.2017.

SHIPYARD OPERATIONS:

Projects Completed During the Year 2017 :-

● Construction and Fabrication of Steel Floating Pier complete with all utility items, as a subcontractor for M/s Gulf Dredging, at HEISCO Shipyard for US Army Corps of Engineers-Umm Qasr Project.

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

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

● Dry-Docking and Repairs of Oil Tankers (4 Nos.) at HEISCO Shipyard for M/s Coral Shipping Company, (Greece).

● Modification of Navigational Systems at HEISCO Shipyard for US Army’s (LCU Class Vessels), with M/s Scientific Research Corp. (USA).

● Special Survey Docking & Repairs of Anchor Handling Tug Vessels (3 Nos.) at HEISCO Shipyard for M/s Smit Lamnalco, (Netherlands).

Projects Ongoing During the Year 2017:-

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

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

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

● 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.

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

Construction and Fabrication of Steel Floating Pier for M/s Gulf Dredging,for US Army Corps of

Engineers (USACE) - Umm Qasr Project

Major Rehabilitation Works of "SPM Buoy", for M/s Saudi Aramco Chevron Inc., - Kuwait

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Agreements & Other Achievements During the year 2017:-

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

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

● HEISCO Shipyard participated in SOMWME (Seatrade Offshore Marine & Workboats Middle East), Exhibition from 25 - 27 September 2017 in Abu Dhabi National Exhibition Centre, Abu Dhabi, United Arab Emirates.

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

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

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

Projects Awarded During the Year 2017:-

● 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 Oil Tankers (4 Nos.) at HEISCO Shipyard for M/s Coral Shipping Company, (Greece).

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

● Modification of Navigational Systems at HEISCO Shipyard for US Army’s (LCU Class Vessels), with for M/s Scientific Research Corp. (USA).

● Special Survey Docking & Repairs of Anchor Hadling Tug Vessels (3 Nos.) at HEISCO Shipyard for M/s Smit Lamnalco, (Netherlands).

HEISCO Shipyard built-up Stand at SOMWME in Abu Dhabi National Exhibition Centre, United

Arab Emirates

HEISCO Shipyard at the Seatrade Maritime Awards Middle East, Dubai, United Arab Emirates

HEISCO Shipyard at the Seatrade Maritime Awards Middle East, Dubai, United Arab Emirates

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● HEISCO Shipyard is one of the sponsors at the Seatrade Maritime Awards Middle East,Indian Sub-continent & Africa held on 9 October 2017 at Joharah Ballroom, Madinat Jumeirah, 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 & Marine Services Brochure and Shipyard Persian Language Brochure.

● HEISCO Shipyard reserved space and registered for the SMME (Seatrade Maritime Middle East) Exhibition from 29-31 October 2018 in Dubai International Convention and Exhibition Centre, UAE.

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

OIL & GAS OPERATIONS:


● Structural, Mechanical, Piping, Painting and Electrical & Instrumentation Works for North LPG Tank Farm (NLTF) Project with the Main Contractor for Kuwait National Petroleum Company.

● Supply of Pressure Vessels & Structural Steel for Clean Fuel Project MAA Package with the Main Contractor for Kuwait National Petroleum Company.

● Supply of Structural Steel for New & Existing Conveyors for Sulphur Handling Facilities Project at Mina-Al-Ahmadi Refinery with the Main Contractor for Kuwait National Petroleum Company.

● Piping Fabrication Works for Clean Fuel Project MAB area1 Package with the Main Contractor for Kuwait National Petroleum Company.

● Manufacturing and Supply of Desalter Feed Heaters for New Gathering Centre GC-30 in North Kuwait with the Main Contractor for Kuwait Oil Company.

● Supply of barge crane for maintenance of South Pier Exchangers during shutdown at Mina Al-Ahmadi Refinery for Kuwait National Petroleum Company.

● Piping spool fabrication and painting works for New Gathering Centre GC-29 project in North Kuwait with the main contractor for Kuwait Oil Company.

● Piping fabrication works for New Gathering Centre GC-30 project in North Kuwait with the main contractor for Kuwait Oil Company.

● Supply of pressure vessels & carbon steel columns for Az-zour Refinery Project (EPC Package 1) with the main contractor for Kuwait Integrated Petroleum Industries Company.

● Supply of Columns for Gas Train 5 Project with the main contractor for Kuwait National Petroleum Company.

● Structural steel fabrication for New Water Center (NWC) project in North Kuwait with the main contractor for Kuwait Oil Company.

Projects Ongoing During the Year 2017 :-

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

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

Desalter Feed Heaters for Gathering Centre GC-30

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● 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.

● 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.

● Pipeline works in MGT(Manifold Group Trunk Line System) Project for GC 29, 30 & 31 in North Kuwait with Main Contractor for Kuwait Oil 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 at Shuaiba South Power Station & Az-zour South Power Station for the Ministry of Electricity And Water.

● Professional Manpower Supply Services for M/s Khafji Joint Operations.

● Mechanical Maintenance Services for M/s Joint Operations at Wafra.

● Secondment Manpower Supply Services for Kuwait National Petroleum Company.

● Reconditioning of Plate Heat Exchangers for M/s EQUATE Petrochemical Company.

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

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

● 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.

● 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.

STF Area Tank Roof Lifting - Lower Fars Heavy Oil Development Programme Phase-1

Pipeline works for Manifold Group Trunk line (MGT) System for GC-30

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● Mechanical, Electrical, Instrumentation and Telecom Works for Azzour 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 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.

● SPM Buoy Refurbishment and Chain Replacement at Mina Saud for M/s Chevron Saudi Arabia.

Projects Awarded During the Year 2017 :-

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

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

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

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

● Hydro Blasting activities during Turnaround – 2017 for M/s EQUATE Petrochemical Company.

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

● Fabrication & supply of Deaerator tank in OL2K project for M/s EQUATE Petrochemical Company.

● Mechanical Manpower Supply for M/s EQUATE Petrochemical Company.

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

● Seawater valve replacement project – Turnaround-2017 for M/s EQUATE Petrochemical Company.

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

● Mechanical and Structural Works for Seawater Returnline Bypass Provision Project for M/s EQUATE Petrochemical Company.

● Structural, Mechanical and Piping works for Clean Fuel Project MAB2 with 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.

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

CNC Beam Drill Line Machine

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OFFSHORE OPERATIONS:


● Construction, Completion & Maintenance of Police Officers Club Marina at Abu Al Hasaniya for the Ministry of Interior.

● Shore Protection works for Sulphur Handling Facilities Revamp and New project at MAA Refinery with main contractor for Kuwait National Petroleum Company.

● Dredging works at Kuwait Naval Base project with the main contractor for United States Army Corps of Engineers.


● 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.

● 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 &

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

Civil Works for the MGT (Manifold Group Trunk Line) System for New GCs 29, 30 & 31

at North Kuwait

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

Construction, Completion & Maintenance of Police Officers Club Marina at Abu Al Hasaniya

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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.

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

● 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.

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

Projects Awarded during the Year 2017:-

● Dredging works at Kuwait Naval Base project with the main contractor for United States Army Corps of Engineers.

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

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

● Shore Protection works for Sulphur Handling Facilities (Revamp and New) project at MAA Refinery with main contractor for Kuwait National Petroleum Company.

● 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.

Offshore Works for Single Point Mooring (SPM) Buoy Refurbishment & Chain Replacement

at Mina Saud

Steel Floating Pier - Design, Build, Piers & Dredging Project at Umm Qasr Port -

Republic of Iraq

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

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● 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.

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

Projects Awarded during the Year 2017:-

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

ONSHORE OPERATIONS:


● Civil works for New Booster Station Project (BS-171) at West Kuwait with the main contractor for Kuwait Oil Company.

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

Civil Construction Works for Clean Fuel Project at Mina Abdullah

Construction of 160 New Houses in South Ahmadi

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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 2017.

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 130.684 Million in

2016 to KD 170.273 Million in 2017, reflecting an increase of 30.29%.

● Gross Profit increased from KD 15.574 Million in 2016 to KD 17.748 Million in 2017.

● General and administrative expenses increased from KD 5,085,588 in 2016 to KD 5,920,205 in 2017.

● Net Profit decresed from KD 6,331,226 in the year 2016 to KD 6,065,604 in 2017.

● Earnings per share decresed from 35.13 fils in 2016 to 33.67 fils in 2017.

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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 2017

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2017(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 2017(All Amounts in Kuwaiti Dinars)

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - YEAR ENDED 31 DECEMBER 2017(All Amounts in Kuwaiti Dinars)


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CONSOLIDATED STATEMENT OF CASH FLOWS - YEAR ENDED 31 DECEMBER 2017(All Amounts in Kuwaiti Dinars)


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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - 31 DECEMBER 2017(All Amounts in Kuwaiti Dinars unless otherwise stated)


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(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 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.

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

Flowlines

Oil & Gas Operations

HEISCO AT A GLANCE

Flowline

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HEISCO executes its works from field survey and site investigation to 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, 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 large diameter pipeline construction and has completed a subcontract of Low Sulphur Fuel Oil (LSFO) project having 200 km of 48” pipelines and 600 km of different sizes up to 56” pipelines for Kuwait Oil Company. Another major pipeline project completed was Engineering, Procurement, Construction and commissioning of 2 X 20” Heavy Fuel Oil Pipelines of 120 km each from Mina Ahmadi Refinery Pumping Station to Doha Power Station for MEW.

Plants

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

Pipelines

Plants

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Civil Operations

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

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.

Tanks Operations

With decades of experience in manufacturing and successful installations of storage tanks, HEISCO is capable of manufacturing tanks of complex plate

Civil Operations

Electrical & Instrumentation Operations

Tanks Operations

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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. 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 a main provider 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 supports and solutions with high standards of quality and safety in a cost-effective way.

Maintenance Operations

HEISCO is competent in maintenance of oilfield upstream facilities, various insulation and cladding works, sludge treatment, etc. It is capable of undertaking services such as maintenance and trouble shooting 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 and reconditioning of engine components and repairing of heavy duty radiators and special machining of critical components by using CNC Machinery.

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

Industrial Maintenance

Maintenance Operations

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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 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 consistant improvements in the fabrication facilities to provide its clients with improved services.

Highlights:

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

● Design and engineering capabilities with latest software like 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.

Power Plant Operations

Fabrication Operations

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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 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.

Trading Operations

HEISCO’s dynamic sales and marketing force is 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.

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

Some of the products promoted are boilers 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

Trading Operations

Quality Control and Testing

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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.

Calibration Laboratory

HEISCO’s Calibration Laboratory, initially established to provide in-house calibration services, grew rapidly to cater its services to external customers as well with a wide range of testing and calibration services. The Calibration Laboratory, with highly qualified and trained engineers, technicians and state-of-the-art master calibrators, has the capability to provide calibration services that can be performed in-house or on-site and third-party calibrations of specialized instruments.

The Calibration Laboratory is functioning in accordance with ISO 9001:2015 Quality Management System and is accredited to International Standard ISO/IEC 17025 of American Association for Laboratory Accreditation (A2LA).

Calibration Laboratory

Quality Control and Testing

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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

● Sensor Test Machine

● 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

● Spray Guard Painting Pump (Graco Mortar Pump), GRACO, M680 Mortar Pump

Shipyard Workshops

Shipyard Operations:

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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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Jetty - C

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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 Tenders Committee 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

Offshore Equipment - (GDC 230)

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

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● 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

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

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 9001:2008

● OHSAS 18001: 2007

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

Offshore Equipment (Split Barges)

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Onshore Equipment (Crane)

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 Equipment (Bull Dozers)

Onshore Equipment (Wheel Loader)

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Documents

nd ANNUAL REPORT 2017 - Heisco · HEISCO Shipyard is one of the sponsors at the Seatrade Maritime Awards Middle East,Indian Sub-continent & Africa held on 9 October 2017 at Joharah