Mubasher: Al Imtiaz Investment Group stated that its 50.69% owned subsidiary, has signed the contract covering the import of main and secondary heavy equipment for Kuwait Gulf Oil Company at a total value of KWD 11.497 million.

The contract will carry a maturity period of five years, while the works will take place in Wafra oil field in the neutral zone shared between Kuwait and Saudi Arabia, according to a bourse filing on Wednesday.

The subsidiary is forecast to generate a profit margin ranging from 2% to 4% of the contract’s value. The profit percentage is an estimated and unfixed rate, subject to any changes in some factors, including the project workflow and the execution period.

Al Imtiaz Investment further noted that its 50.69% ownership in the subsidiary shall represent its share in the net profit as per the estimated percentage of completion.

It is worth noting that during the third quarter of 2019, Al Imtiaz Investment’s financials showed a 70% year-on-year decline in profit to KWD 1.431 million from KWD 4.766 million in Q3-18.