Apicorp posts $162m income in 2015

Apicorp has continued to perform strongly and has made excellent progress in implementing a five-year strategy, says chairman Dr Aabed bin Abdulla Al Saddoun.

Arab Petroleum Investments Corporation, or Apicorp, announced its full-year consolidated financial results for the period ending December 31, 2015, showing that total income increased to $162.04 million in 2015 compared with $156.28 million in 2014.
Net profit before provisions grew to $124.38 million from $118.51 million in the previous year.
The company maintained its prudent approach, setting aside an investment provision of $16.78 million, 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 $107.60 million for 2015, compared with $105.03 million in the previous year. As at December 31, 2015, total assets were $5.65 billion and shareholders' equity increased to $1.91 billion.
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, in addition to Apicorp's participation in Taqa's capital increase. Total direct equity investments, were $922.53 million as at December 31, 2015, 6.5 per cent higher than 12 months previously.
"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. Apicorp has grown both income and profits year-on-year, which, in the context of a continuing low oil price and geopolitical tensions in several parts of the region, is a thoroughly creditable performance," Apicorp chairman Dr Aabed bin Abdulla Al Saddoun said.
In February 2015, Apicorp participated in a successful $200 million refinancing arrangement for National Petroleum Services Group - Apicorp's stake is 29 per cent - in conjunction with HSBC, Emirates NBD and Al Hilal Bank.
Net interest income for the year came in at $44.91 million, 12 per cent 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 $995 million and a very healthy capital adequacy ratio of 28.65 per cent. This was supported by a report issued by Moody's in October 2015, which pointed to Apicorp's strong capital adequacy, which is well above regulatory requirements, and which stated that its relatively low leverage, solid track record of profitability, and increasingly diverse equity investments, all contribute to the agency's view on Apicorp's "high intrinsic financial strength".
In recognition of this financial strength and to reflect its long-term confidence in the company's growth prospects, Apicorp's extraordinary general assembly has approved to increase the company's subscribed share capital to $2 billion. It also declared a dividend payable to the company's shareholders of $40 million in respect of 2015.
- business@khaleejtimes.com

• Saudi Arabia