APICORP H1 Net Income Reaches USD 51 Million, Up 24%

Doha, August 14 (QNA) - Arab Petroleum Investments Corporation (APICORP) Tuesday announced a net income of USD51 Million for the first half of 2012, an increase by 24% compared to USD41 Million for the same period last year. The assets of APICORP, the multilateral development bank owned by the ten member states of the Organization of Arab Petroleum Exporting Countries (OAPEC), rose 18% in the first half to reach USD5.12 Billion compared to USD 4.33 Billion over the same period last year. The Government of Qatar owns a 10% stake in APICORP. First half results were bolstered by a 2012 second quarter net income of USD20 Million compared to USD Million recorded in Q2 2011, achieved on the back of APICORP's ability to continue reducing its funding costs while increasing lending activity, amidst the withdrawal of European banks from financing regional projects. APICORP Chief Executive and General Manager Ahmad Bin Hamad Al Nuaimi said, "The first half results demonstrate the measured approach to growth practiced at APICORP which has allowed it to operate comfortably in carrying out its mandate amidst challenging global economic conditions, marked currently by the ongoing uncertainty of the European debt crisis. These results also provide a strong impetus for APICORP to continue to diversify its equity, financing and funding portfolios. Al Nuaimi added, "This year, APICORP has continued to increase the size of its medium term committed funding that has further strengthened its capital base while continuing to support new Arab oil and gas initiatives." APICORP had announced a series of key initiatives in the first half of 2012. This includes its collaboration with J.P. Morgan to expand its energy trade finance services to the Arab World and beyond, and APICORP's first ever SAR 2.5 Billion (USD 667 Million) Shari'ah compliant term loan facility, which was oversubscribed by leading Saudi banks. Al Nuaimi further stated "APICORP is committed to ensuring long term sustainable growth by balancing its continued diversification of business streams and funding portfolios with strong conservative banking fundamentals. As a result, APICORP continues to enjoy one of the highest capital adequacy ratios for A-rated banks in the Middle East and North Africa region, coupled with one of the lowest leverage ratios. This in turn allows APICORP to withstand the impact of slow global recovery as well as any potential shocks in international markets." 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, the Corporation has invested, as an equity owner, in a total of 22 oil and gas joint venture projects worth in excess of USD16 Billion. At the same time, APICORP has participated in direct and syndicated energy finance transactions worth in excess of USD130 Billion. Its aggregate commitments in these transactions, both in equity and debt, are valued in excess of USD11 Billion. Moody s rates APICORP A1 for long term and Prime 1 for short term, with a stable outlook. (QNA)