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Apicorp’s net profit rockets 90% in Q3

DUBAI - The Arab Petroleum Investments Corporation, or Apicorp, the multilateral development bank owned by the ten member states of the Organisation of Arab Petroleum Exporting Countries, maintained its robust growth momentum this year with its third quarter net profit almost doubling from last year.

Net profit rose 90 per cent to $12.67 million from $6.68 million posted in the third quarter of 2011. The third quarter results were approved at Apicorp’s quarterly board meeting, held recently in Cairo. The government of the UAE owns a 17 per cent stake in Apicorp.

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.

“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,” Apicorp chief executive and general manager Ahmad bin Hamad Al Nuaimi said.

Earlier this month in Cairo, Apicorp’s board ratified a five-year term loan worth SR440 million ($117 million) towards financing the multilateral development nank’s operations. Earlier this year, the board also approved a five-year term loan worth SR500 million ($133 million), and approved Apicorp’s first ever three-year SR2.5 billion ($667 million) Shariah-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 JPMorgan 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, in a total of 22 oil and gas joint venture projects worth in excess of $16 billion.

business@khaleejtimes.com