Apicorp's net profit increases 76% to $182 million

Muscat: The Arab Petroleum Investments Corporation (Apicorp), a multilateral development financial institution, held its 43rd General Assembly for 2019 in Muscat, Oman. The meetings were attended by the shareholders of Apicorp representing its member states, the 10 Arab oil exporting countries.

The net profit for the Corporation in 2018 increased to US$182.3 million, a 76 per cent year-over-year increase and is the highest in Apicorp’s history. This was driven by returns from a capital gain of US$86.7 million on the sale of Apicorp’s equity stake in National Petroleum Services (NPS) as well as remarkable growth achievements of net interest income and dividend income at 67 per cent and 51 per cent, respectively. Indeed, all these factors resulted in total income at US$252.7 million, increasing by 78 per cent vis-à-vis the 2017 figures.

Commenting on the key financial highlights for the year, Dr Aabed bin Abdulla Al Saadoun, Chairman of the Board of Directors said: “This year was the strongest financial performance achieved by Apicorp with significant net profit increase to US$182.3 million and 11 per cent asset growth."

"Apicorp registered robust financial results across the business and increased profitability and sustainable earnings in line with its vision, while cementing its position as the leading multilateral development financial institution supporting the Arab world’s broader energy and sustainability industries,” he added.

Dr Ahmed Ali Attiga, Chief Executive Officer of Apicorp, said: “The annual results are testament to the resilient efforts of our entire team, and a strong indicator of our overall business strategy and robust risk and corporate governance framework. Notably, Apicorp’s 2018 total income increased by 78 per cent to US$252.7 million as compared with last year.”

The assets grew by 11 per cent to US$6.95 billion as of December 31, 2018. This was mainly due to an expanding corporate finance portfolio that reached US$3.49 billion (around 50 per cent of the balance sheet) and is well-diversified in the broader energy sectors. Notably, the non-performing loan (NPL) ratio has shown remarkable improvements from 2.05 per cent in 2017 to 0.34 per cent in 2018.

On the funding front in 2018, Apicorp successfully completed five medium-term funding transactions for a total amount of US$1.3 billion from the international markets and widened its investor base, with strong interest from the US, Europe, Asia and China.

In September 2018, Moody’s announced an upgrade to the rating outlook of Apicorp’s debt from Aa3 stable to Aa3 positive. This development comes in the wake of consistent improvement in Apicorp’s funding profile and corresponding improvements in its liquidity position.

Times of Oman Contribution Time: 22-Apr-2019 13:06 (GMT)
Times of Oman Last Update Time: 22-Apr-2019 13:06 (GMT)