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Apicorp posts $54.8m net profit in first half of 2020

Staff Report/Dammam
Filed on September 6, 2020


The Arab Petroleum Investments Corporation (Apicorp) has announced its half-year results for the six months ended June 30, 2020, with gross operating income for the period standing at $144.7 million while net profit reached $54.8 million.

While down from the corresponding period last year at 20 per cent and 22 per cent, respectively, the net profit results are notable under the current market conditions due to the Covid-19 pandemic and oil price fluctuations. The revenue was mainly affected by the decrease in dividends from portfolio companies as well as revaluations in the equity investments portfolio due to the pandemic.

Income from Apicorp's treasury and capital markets rose to $60.4 million, a 38 per cent increase compared to the corresponding period of last year. Income over Libor from corporate banking for the period remained the same as compared to the first half of last year, reaching $50.3 million. Moreover, the corporation maintained its annualized efficiency ratio at 25.6 per cent for the period, the same as for the 2019 financial year.

Over the period, Apicorp's balance sheet grew 10 per cent to reach $ 8.1 billion, due in large part to the growth in the size of its treasury and capital markets portfolio which was funded mainly by the issuance of a benchmark $750 million bond in June 2020. This has contributed to Apicorp's readiness to fund its future business needs. Apicorp also further bolstered its financial sustainability by increasing the share of its liabilities whose maturity is beyond two years to 45 per cent of its total liabilities and shareholders' equity, up from 40 per cent in December 2019.

Dr. Ahmed Ali Attiga, CEO of Apicorp, said: "The results in the first six months of 2020 are a testament to the resilience of Apicorp in the face of a tough global business environment. Notwithstanding the triple crisis of Covid-19, oil price volatility and economic downturn, Apicorp continued to go from strength to strength, further bolstering its financial position and diversifying its portfolio as it continues its drive to support the energy transition in the region. This includes a historic callable capital increase, a highly successful benchmark bond issuance, a $500 million countercyclical support package, being assigned a second rating of 'AA' with a stable outlook from Fitch, as well as forging new partnerships with other leaders in key projects within the energy space." 

"We are looking forward to the coming period for a gradual recovery in our operating environment and the new opportunities it will bring. As the trusted financial partner to the Mena region's energy industry, we will continue to support our Member Countries and partners to alleviate the impact of Covid-19, with a focus on sustainable impact-driven energy projects and activities in the region," Dr. Attiga added.

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