Mubasher: Heavy Engineering Industries and Shipbuilding (HEISCO) has renewed contracts worth nearly $21 million with Kuwait Oil Company (KOC) and the US army. 

Valued at KWD 3.27 million ($10.5 million), the first contract with the Kuwaiti firm has been extended for one year starting as of 1 February 2020 until 31 January 2021, according to a stock exchange filing on Monday.

Under the mentioned deal, HEISCO will provide specialized labour to the KOC naval fleet.

The second one-year contract is valued at $10.28 million, running from 29 March 2020 to 28 March 2021.

HEISCO will provide maintenance to the US army ships situated in the Muhammad Naser Al Ahmad Naval Base.

As for the material impact, both transactions will generate operating profits that will reflect on HEISCO’s financial statements for 2020 and 2021.

It is worth pointing out that in the nine-month period ended 30 September 2019, HEISCO’s profits rose by 13.31% to KWD 8.05 million, compared with KWD 7.11 million in the same period last year.