Mubasher: Advanced Technology Company (ATC) announced the signing of three contracts at a total value of KWD 7.4 million ($24 million).

The first contract was signed directly with Kuwait Oil Company (KOC) at KWD 2.23 million for the construction and maintenance of a field hospital in an effort to contain the coronavirus (COVID-19), according to an official statement on Sunday.

The deal has a maturity period of 11 days and a free guarantee period of three years. It is also likely to achieve a 3% profit margin.  

The second and third deals were signed with the Kuwaiti Ministry of Health at $6.8 million and KWD 2.9 million, respectively.

Under the second deal, the company will supply the necessary solutions and consumables for CX and LX 20 devices to meet the needs of all laboratories, the company disclosed to Boursa Kuwait.

Moreover, the third deal will provide solutions and consumables for AU devices, according to a separate bourse statement. 

The deals carry a maturity period of 18 months, each.

Moreover, each of the second and third contracts is expected to generate a profit margin of 4%, an estimated rate that is not fixed and is subject to change as per various factors, including supply stages and the contract's execution period.

In addition, the impact of the three transactions will reflect on the company's income statement starting from the delivery of the first shipment, which will be scheduled by the health ministry based on its needs, through to the end of their maturity period.

It is noteworthy that in fiscal year (FY) 2019, ATC) reported a 72.28% year-on-year (YoY) drop in its net profits at KWD 1.84 million from KWD 6.64 million.