- 2012 net profits rise over 3% from 2011 to reach US$109 million, the highest in APICORP’s 37 year history
- Total assets for the period rise over 9.6% to reach US$ 5 billion
- Net asset value per share increases over 7% to US$ 1,744
Dammam, 20 May, 2013: The Arab Petroleum Investments Corporation (APICORP), the multilateral development bank owned by the ten members of the Organisation of Arab Petroleum Exporting Countries (OAPEC), today announced net profits of US$109 million for 2012, the highest-ever in the organisation’s 37 year history. The 2012 record profits represent a growth of over 3% from the previous year and further highlight APICORP’s successful track record in generating sustainable returns while effectively supporting the Arab energy industry.
APICORP’s total assets rose to over US$ 5 billion, an increase of 9.6% from 2011 while net asset value per share jumped over 7% to US$ 1,744. Ahmad Bin Hamad Al Nuaimi, Chief Executive and General Manager of APICORP said: “We are delighted to have achieved record financial results for a third year in a row. APICORP has a successful history in facilitating the availability of capital for the Arab energy sector, and despite the continued economic headwinds in 2012, it has continued to play a strong counter-cyclical role in supporting its clients across the Arab world. APICORP remains committed to driving efficiency, innovation, enterprise and value creation in the Arab energy industry and these robust set of results have come in a year in which we further increased our investment in supporting the industry’s development.”
APICORP’s strong fundamentals were endorsed by Moody’s upgrade of the multilateral development bank’s issuer and senior unsecured rating from A1 to Aa3 in October 2012. At a time when substantial credit upgrades for financial institutions remain rare, the upgrade distinguished APICORP as a strong performer in the global banking sector.
“APICORP has continued to maintain a very high asset quality and ensure sustainable growth through continued diversification of its business streams and funding portfolios, while also ensuring continued discipline around maintaining strong banking fundamentals. In 2012, we were able to reduce our funding costs, while at the same time increase our lending activity,” said Al Nuaimi.
APICORP maintained a strong focus on diversifying its funding composition and expanding its services for clients in 2012. In February last year, it closed a three-year SAR 2.5 billion (US$ 667 million) syndicated Shari’ah-compliant facility aimed at increasing its medium term funding while in October, it partnered with J.P. Morgan to widen its energy trade finance services.
Another key strategic focus in 2012 was the development of specialised investment funds in vital energy sectors, a strategy that resulted in the establishment of the landmark US $150 million APICORP Petroleum Shipping Fund aimed at leveraging growth opportunities in the petroleum product tanker charter market. Co-managed by Tufton Oceanic, the Fund is the first investment fund to be established by APICORP and the first fund in the region aimed at a specific vessel category.
“In 2013, APICORP remains committed to building on its track record of successfully catalysing value creation in the Arab energy industry and to contributing to the economic development of Arab countries. As part of our current five-year strategy, we will continue to investigate opportunities to diversify our investment and financing portfolios into new oil and gas and utility sectors. We are particularly looking at supporting projects that will boost the region’s midstream and downstream capabilities, which are crucial for Arab countries to maximize economic benefits from energy resources,” Al Nuaimi further said.
“APICORP is particularly keen to support cross border projects that facilitate collaboration between Arab countries. In the immediate pipeline are a number of opportunities including acquisitions and joint ventures. Though APICORP has traditionally invested largely with governments and their National Oil Companies, we are also seeking to significantly broaden our exposure with the private sector,” he added.
Over the last 37 years, APICORP has invested, as an equity owner, in a total of 22 oil and gas joint venture projects worth in excess of $16 billion. APICORP has also participated in direct and syndicated energy finance transactions worth in excess of US$130 billion. APICORP‘s aggregate commitments in these transactions, both in equity and debt, are valued in excess of US$11 billion.