About Us/ Message from the Chairman

Ahmad S. Al-Jemaz, Chairman

On behalf of KARO Board of Directors Members, I would like to present the Kuwait Aromatics Company annual financial report for the year 2013 which ended on 31st December 2013 The performance of TKAC during the elapsed year ended in December 2013 is considered the best performance ever achieved by TKAC since the end of 2009 when operation and production of KPPC and TKSC started. The performance of TKAC during the year 2013 can be summarized as follows:

Safety and Operational performance

A. Kuwait Paraxylene Production Company (KPPC)

2013 is considered the best period from day one in KPPC units meeting and exceeding All 2013 EH&S targets. Duringthis year no violations were reported related to local andinternational environmental, industrial and safety standards,policies, rules and regulation. Beside this great achievement,zero recordable injury was achieved with zero days away ofwork caused by injury in 2013.

In 2013, KPPC achieved 839,000 MT of Para-xylene production which represents 103% of the budgeted production compared to production of 868,555 MT in 2012. Benzene production in 2013 was 279,800 MT in comparison to 362,555 MT in 2012, this reduction in Benzene production was caused by the change of the unit’s operation mode for the benefit of Para-xylene production. This achievement could only be reached through the efforts made to improve the operation and Reliability of the plants and enhancing it on stream factor.

KPPC had a 14 days planned shutdown for executing small projects and essential repairs. Maintenance was completed on time successfully without safety issues.

B. The Kuwait Styrene Company (TKSC)

TKSC Operations during the year 2013 did not record any violations related to local and international criteria of environmental, industrial and safety rules and regulation. Besides that, zero recordable injury was achieved with zero days away of work caused by injury in 2013.

The company produced 507,650 MT of Styrene Monomer in the year 2013 which represented 108% of the budgeted compared to 97% achieved of 2012 budgeted quantity. This high production is considered a great achievement in comparison with 2012 production of Styrene Monomer which was 419,837 MT.

In February 2013, the Plant had a planned periodic The shutdown was successfully completed without any safety incidents.

C. The Financial Performance of KARO

TKAC Financial Performance achieved in 2013.

A total profit of 197.704 Million$ compared with a net profit of 35.844 Million$ in 2012

KPPC made a net profit of 95.218 Million$ compared to 0.603 Million$ in 2012.

TKSC made a net profit of 103.726 Million$ in 2013 compared to 33.913 Million$ in 2012.

It is worth to mention also that the company had suffered some losses of 1.24 Million$ resulted from the non-operating cash conversion of the existing currencies.

I would like to extend to you all my sincere thanks and gratitude for all your support which gave us confidence during 2013. We look forward to the continuation of your support for the coming years which will enhance and improve the financial and operational Performance of the organization to meet the expectations of all shareholders.