Apicorp reports boom in profits
Arab Petroleum Investments Corporation (Apicorp) has increased its income by 24% in H1 2012 due to its reduced funding costs and increased lending activity, according to the multilateral development bank.
Apicorp’s income for H1 2012 reached US$51mn compared to US$41mn for the same period last year. The bank’s assets also rose by 18% to total US$5.12bn compared to US$4.33bn in H1 2011.
Apicorp’s first half results were bolstered by a 2012 second quarter net income of US$20mn, compared to US$2mn recorded in Q2 2011.
Ahmad Bin Hamad Al-Nuaimi, chief executive and general manager of Apicorp says: “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 initiatives and transactions in the first half of this year, which include its collaboration with JP Morgan in June to expand its energy trade finance services to the Arab world and beyond.
The bank also issued its first ever syndicated shariah-compliant term loan facility. The three-year SR2.5bn (US$667mn) loan was oversubscribed by leading Saudi banks including Riyad Bank, Al Rajhi Bank, Banque Saudi Fransi and The Saudi British Bank.
Over the last 36 years Apicorp has invested, as an equity owner, in a total of 22 oil and gas joint venture projects worth in excess of US$16bn.
Additionally, the bank has participated in direct and syndicated energy finance transactions worth in excess of US$130bn; its aggregate commitments in these transactions, both in equity and debt, are valued in excess of US$11bn, the bank says.