Qatar- Apicorp's subscribed capital to touch 2bn

Date

4/25/2016 1:29:55 PM

(MENAFN- The Peninsula)

DOHA: The Arab Petroleum Investments Corporation (Apicorp) a multilateral development bank established by the 10 member states of the Organisation of Arab Petroleum Exporting Countries (OAPEC) announced its full year consolidated financial results for the period ending December 2015 with total income increasing to $162.04m compared with $156.28m in 2014; and net profit before provisions growing to $124.38m from $118.51m from a year ago.

The company maintained its prudent approach setting aside an investment provision of $16.78m which was slightly higher than in 2014 and reflects continuing geopolitical and economic uncertainty in several parts of the Mena region. This resulted in an adjusted net profit of $107.60m for 2015 compared with $105.03m in the previous year.

As on December 31 2015 total assets were $5.65bn and shareholders’ equity increased to $1.91bn. During the year Apicorp continued to implement its strategy of rebalancing its lending and equity investment portfolios through increasing the level of equity investments. This saw Apicorp make a significant investment in Saudi Mechanical Industries (SMI) in addition to Apicorp’s participation in TAQA’s capital increase. Total direct equity investments were $922.53m as on December 31 2015 6.5 percent higher than 12 months previously.

The year 2015 also witnessed the establishment of a $3bn sukuk programme followed by the successful placement of a five year $500m Sukuk in October 2015. Becoming a regular issuer of sukuk in global markets represents a significant strategic step for Apicorp and positions the company’s credit alongside its multilateral development banks peers.

In February 2015 Apicorp participated in a successful $200m refinancing arrangement for National Petroleum Services Group (NPS) — Apicorp’s stake is 29 percent — in conjunction with HSBC Emirates NBD and Al Hilal Bank.

Net interest income for the year came in at $44.91m 12 percent higher than in 2014 a better yield and better return on capital testimony to a highly effective management of the loan book and a reduction in funding costs.

Apicorp’s balance sheet remains robust with significant liquidity of $995m and a very healthy capital adequacy ratio of 28.65 percent.

Apicorp’s Extraordinary General Assembly has approved to increase the company’s subscribed share capital to $2bn. It also declared a dividend payable to the company’s shareholders of $40m in respect of 2015.

Commenting on the results Apicorp’s Chairman Dr Aabed bin Abdulla Al Saddoun (pictured) said: “Apicorp has continued to perform strongly and has made excellent progress in implementing a five year strategy designed to achieve a stable balance between lending and equity investment.The Peninsula

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