Surge in net income

The Arab Petroleum Investments Corporation (APICORP), a multi-lateral bank owned by the 10 member states of the Organisation of Arab Petroleum Exporting Countries (OAPEC), reported an above-budget net income of $47 million for the first six months of 2010, a 95 per cent rise over the same period last year.

The Government of Bahrain owns a three per cent stake in APICORP.

Ahmad Bin Hamad Al Nuaimi, chief executive and general manager of APICORP said: "The surge in net income reflects the sound financial fundamentals the organisation maintained despite the current economic environment that has adversely affected credit and capital flows.

"Not only have we remained self-sufficient in meeting our financial obligations at the height of the crisis, but the fact that APICORP exceeded budgeted estimates points to the viability of its business model.

"The excellent results for the first half of this year give us a stable foundation for implementing APICORP's next phase in its business plan to optimise its funding mix and to diversify its investments in new sectors within the oil and gas industry."

At the end of June 2010, APICORP total income jumped to $52 million, a 75 per cent rise over the same period last year. Assets climbed to $4.3 billion from $4.1billion on 31 December 2009. Total Shareholders' Equity also reached $1.069 billion at the end of June 2010, from $1.002 billion at the end of 2009.

"APICORP is well-positioned to benefit from the turnaround in energy investments that will accompany economic recovery," Mr Al Nuaimi added. "Hydrocarbon and energy assets are expected to outperform others as the global economy recovers. Large oil and gas projects expected to be implemented in the Arab world over the coming years represent exceptional investment opportunities. We expect APICORP to play a meaningful role in these opportunities."

Earlier this year, APICORP obtained a strong backing for its credit profile when it received a first-time issuer rating of A1 from Moody's Investors Service for long-term debt and Prime-1 for short-term debt.

APICORP has an authorised capital of $1.2 billion and a fully paid-up and subscribed capital of $550 million.

APICORP is a multilateral bank created in 1975 and wholly owned by OAPEC with a mandate to assist the development of member states' hydrocarbon sectors through project loans, trade finance and direct equity investments.

OAPEC governments of Saudi Arabia (17 per cent), the United Arab Emirates (17 per cent), Kuwait (17 per cent), Libya (15 per cent), Iraq (10 per cent), Qatar (10 per cent), Algeria (5 per cent), Bahrain (3 per cent), Egypt (3 per cent) and Syria (3 per cent) are shareholders in APICORP. The corporation has its headquarters in Al-Khobar/Dammam, in the Eastern Province of Saudi Arabia and operates a banking branch in Manama.