The Arab Petroleum Investments Corporation (APICORP), a multilateral bank, reported a net income of $47 million for the first six months of 2010, a 95 percent rise over the same period last year, according to a statement.
APICORP is owned by the 10 member states of the Organization of Arab Petroleum Exporting Countries (OAPEC), with the government of Egypt owning a 3 percent stake.
Ahmad Bin Hamad Al-Nuaimi, chief executive and general manager of APICORP, said, “The surge in net income reflects the sound financial fundamentals the organization 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 for H1 2010 points to the viability of its business model.”
The bank will now focus on optimizing its “funding mix and diversify[ing] investments in new sectors within the oil and gas industry.”
At the end of June 2010, APICORP total income reached $52 million, a 75 percent rise over the same period last year. Assets climbed to $4.3 billion from $4.1 billion on.
Total shareholders’ equity 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,” Al Nuaimi said.
“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 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 authorized capital of $1.2 billion and a fully paid-up and subscribed capital of $550 million.
