KAFCO fuels more than 54,000 airplanes annually, with an average of 148 flights daily.
In the realm of Kuwait's energy sector, two key players, the Kuwait Oil Tanker Company (KOTC) and the Kuwait Aviation Fueling Company (KAFCO), have seen significant operational growth in the past year.
Last year, KOTC transported a staggering 32.7 million metric tons of goods, including 25.5 million tons of crude oil, 2 million tons of liquefied natural gas (LNG), and 5.2 million tons of petroleum products. Meanwhile, KAFCO serviced 54,371 aircraft with jet fuel during the same period, averaging 148 flights daily.
Jet fuel production at KAFCO reached 10.217 million metric tons, accounting for 25.2% of the Kuwait National Petroleum Company's (KNPC) total output. Notably, oil tankers accounted for 18% of Kuwait's total exports and 55% of KPC's export volume via delivery and unloading.
The Maritime Agency managed the arrival of 1,521 oil tankers, including 1,346 foreign tankers and 175 Kuwaiti tankers. Kuwait also exported 13,400 tons of low-sulfur (500 ppm) jet fuel abroad from the Shuaiba wharf at the Mina Abdullah refinery.
However, despite this operational growth, KAFCO's net profits declined by 24.5%, falling from 26.024 million dinars in 2023/2024 to 19.647 million dinars in 2024/2025. This decline is likely due to cost or pricing challenges that erode margins, even as volumes increase.
In a positive note, KAFCO has signed four new international fuel supply contracts with companies in Turkey, Yemen, Nepal, and a private aviation firm. Kuwait Airways aircraft are now receiving Kuwaiti jet fuel at four international airports - Sri Lanka, Istanbul, Kathmandu, and Najaf. Additionally, Kuwait's Ministry of Defense aircraft are being supplied with jet fuel at global airports.
It is worth noting that the Kuwait Oil Tanker Company (KOTC) does not appear to have been involved in servicing aircraft or supplying jet fuel to Kuwait Airways or the Ministry of Defense aircraft.
In conclusion, while both KOTC and KAFCO have seen operational growth, KAFCO's net profits have declined. This suggests that despite increased volume, financial or market conditions may have impacted profitability. The focus for these companies in the coming years will likely be on addressing these challenges to ensure sustainable growth and profitability.
[1] Source: Al-Rai Newspaper, Kuwait Times, and Kuwait Petroleum Corporation Annual Reports.
The Kuwait Oil Tanker Company (KOTC) and the Kuwait Aviation Fueling Company (KAFCO), while expanding their operations, operate differently within Kuwait's energy sector. While KOTC focuses on transporting crude oil, liquefied natural gas, and petroleum products, KAFCO services aircraft and produces jet fuel. Despite KAFCO's operational growth, its net profits declined, possibly due to financial or market challenges, indicating a need for attention towards finance within the industry and technology for cost optimization.
