Arab Petroleum Investments Corporation (APICORP), the multilateral development bank owned by the ten member states of the Organization of Arab Petroleum Exporting Countries (OAPEC), has announced a net income of $ 51 million for the first half of 2012 compared to $ 41 million for the same period of last year, representing an increase of 24 percent. APICORP's assets rose 18 percent in the first half to reach $ 5.12 billion compared to $ 4.33 billion over the same period last year. The Saudi government owns a 17 percent stake in APICORP.
First half results were bolstered by a 2012 second quarter net income of $ 20 million compared to $ 2 million recorded in Q2 2011, achieved on the back of APICORP's ability to continue reducing its funding costs while increasing lending activity, amid the withdrawal of European banks from financing regional projects.
Commenting on the announcement, Ahmad bin Hamad Al-Nuaimi, chief executive and GM of APICORP, 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 announced a series of key initiatives and transactions in the first half of this year, which included its collaboration with J.P. Morgan to expand its energy trade finance services to the Arab World and beyond, and APICORP's first ever SR 2.5 billion Shariah-compliant term loan facility, which was oversubscribed by leading Saudi banks.
Moody's rates APICORP A1 for long term and Prime 1 for short term, with a stable outlook.
