Apicorp net profit jumps 90% in Q3

Arab Petroleum Investments Corporation (Apicorp), the multilateral development bank owned by the ten member states of the Organisation of Arab Petroleum Exporting Countries (Oapec), maintained its robust growth momentum this year with its third quarter net profit almost doubling from last year. Net profit of Q3, 2012 rose 90 per cent to $12.67 million from $6.68 million posted in Q3 2011. Apicorp’s cumulative net profit for the first three quarters of this year reached $63.2 million, a 33 per cent jump from the $47.5 million recorded over the same period last year. Total assets rose 13 per cent to reach $ 5.1 billion compared to $4.5 billion at the end of September 2011. The third quarter results were approved at Apicorp’s quarterly Board meeting, held in Cairo on Oct.5, 2012. The government of UAE owns a 17 per cent stake in Apicorp. Commenting on the results, Ahmad Bin Hamad Al-Nuaimi, CEO and General Manager of Apicorp said: “Our third quarter performance validates our strategic roadmap where we have maintained a balance between growth initiatives and risk management. Apicorp’s ability to enhance its lending capacity on the back of its capital base expansion and funding diversification not only makes it stand out in today’s tough banking environment, but is also delivering results for Apicorp’s shareholders and resulted in last month’s rating upgrade by Moody’s from A1 to a double Aa3.” Earlier this month in Cairo, APICORP’s Board ratified a five-year term loan worth SAR 440 million ($117 million) towards financing the Multilateral Development Bank’s operations. Earlier this year, the Board approved a five year term loan worth SAR 500 million ($133 million), and approved Apicorp’s first ever three year SAR 2.5 billion ($667 million) Shari’ah Compliant term loan facility, which was oversubscribed by leading Saudi banks. “In 2012, we expanded our array of value offerings aimed at supporting energy companies through a series of initiatives that included a partnership with JP Morgan to expand our energy trade finance services to the Arab World and beyond. At a time when international bank financing resources are getting scarcer in the region, we expect Apicorp to play an even more significant role in supporting energy-related transactions and being a growth-enabler for the Arab hydrocarbon industry,” said Al Nuaimi. In Cairo, the Board gave the go-ahead for Apicorp to extend loans worth $387 million; trade financing facilities worth $277 million; and letters of credit to institutions both within and outside the Arab region. Since its founding in 1975, Apicorp has played a vital role in fostering the development of the Arab energy industry. Over the last 36 years, Apicorp has invested, as an equity owner. From Gulftoday