MADRID, 21 February 2008 — Spanish utility Iberdrola said yesterday its net profit rose 41.8 percent in 2007 to 2.35 billion euros ($3.45 billion) owing largely to its purchase of Scottish Power. The results were within the upper range of analysts’ forecasts and they come amid interest in the firm, the world’s largest owner of wind-energy parks, from French company EDF, Europe’s largest power producer. The Bilbao-based utility said earnings before interest, tax, depreciation and amortization (EBITDA) rose 42.4 percent from the 2006 figure to 5.53 billion euros on sales which leapt 58.6 percent to 17.46 billion euros. “The integration of Scottish Power as of April 23 and the good behavior of our activities in Latin America led to strong growth,” Iberdrola’s chief financial officer, Jose Sainz Armada, told a news conference.

Airlines Owners Back Saudi Investor

Reuters

VIENNA — Some key stakeholders in Austrian Airlines voiced support yesterday for a major Saudi investor’s bid to buy 150 million euros ($220.8 million) in shares in the national carrier. Austrian said earlier this month that intensive negotiations were under way on Mohamed Bin Issa Al-Jaber’s approach, calling it a strategic investment that would back the airline’s expansion strategy in the Middle East. A syndicate of Austrian state holding company OeIAG, insurers and banks now holds a controlling stake in Austrian Airlines, and will meet today to discuss the Saudi plans for the first time. “I see the entrance of Jaber as a positive thing because I feel Austrian has earned a chance for a Middle East connection,” said Guenter Geyer, chief executive of Vienna Insurance Group, which holds 1.5 percent in the airline and is a member of the syndicate.

Samsung Wins $254m Saudi Plant Order

Reuters

SEOUL — South Korea’s Samsung Engineering said yesterday it had secured a 239.2 billion won ($253.5 million) order from Saudi Kayan Petrochemical Co. to build a chemical factory. Samsung told the Korea Exchange in a filing that the turn-key project would be completed by the end of August, 2009.

BMI Posts $12.9m Net Profit

Walid Mazi, Arab News

MANAMA — Bahrain-based BankMuscat International (BMI) yesterday announced a net profit of $12.9 million for the year 2007. The return on equity for the year was 14.5 percent. Net interest income increased 32 percent to $5.9 million as compared to 2006 with strong growth in both retail and corporate banking. The bank’s total assets grew by 41 percent to $1,353 billion as compared to $960m in 2006 while total deposits grew by 29 percent to $1,077 billion as compared to $833 million in 2006. Net loans and advances grew by 16 percent to $867 million as compared to $751 million in 2006. “Overall we have made good progress in growing our assets and liabilities, marking a steady increase in our business in terms of customer numbers and product penetration. We saw significant improvement from 2006 in terms of customer reach, with new and expanded access points for our customers,” said BMI Chief Executive Officer Andrew Bainbridge.

Shuaa Retains View on SABB Bank

Reuters

DUBAI — Shuaa Capital retained its estimates and general outlook on Saudi Arabia’s SABB Bank for 2008 and said the bank is expected to revert to positive growth from 2008, even in the face of intensifying competition in its domestic market. The third-largest lender by market value had reported 14 percent fall in full-year net profit, primarily due to the impact of a slowdown of market-related activities on the bank’s revenues. This underperformance was slightly weaker than Shuaa’s expectations, the investment bank said in a note.