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Kipco profit increases 182pc

DUBAI - The Kipco (Kuwait Projects Company) Group has announced net profit of KD18.2 million ($61.8 million), or 18.02 fils (6.1 cents) per share, for the year ended December 31, 2003, a spectacular 182 per cent increase compared to the KD6.45 million ($21.9 million), or 6.38 fils (2.2 cents) per share earned in 2002. The board of directors has recommended a cash dividend of 15 per cent of the share face value, or 15 fils (5.1 cents) per share.

"2003 proved to be a banner year for Kipco, and one in which careful strategies put in place in recent years began to bear fruit," said Kipco managing director and chief executive officer Faisal Al Ayyar.

"These strategies, with twin goals of building sustainable profits and growing the real value of the Group, have resulted in substantial increases in profits and underlying value. It is gratifying that this performance has been recognised by investors with a sharp increase in the price of Kipco shares, and we are extremely optimistic that Kipco is poised to continue from strength to strength," he said.

Total revenues for 2003 increased by 70 per cent to KD68.1 million ($231.1 million) from KD40.1 million ($136.2 million) in 2002. Total assets were KD685 million ($2.3 billion) compared to KD579.1 million ($1.96 billion), a rise of 18.3 per cent, and shareholders' equity grew by 14.6 per cent to KD160.5 million ($544.6 million) from KD140 million ($475.1 million) in 2002.

During the year, the market value of Kipco's investments in core listed subsidiaries and associated companies rose by KD141.5 million ($480.2 million), an increase of 53 per cent from KD266.9 million ($905.8 million) in 2002, to KD408.5 million ($1.4 billion). This increase in market value translates into KD209.7 million ($711.6 million) of unrecognised appreciation in Kipco's book value.