07/04/2007 – The General Assembly of Arab Petroleum Investments Corporation (APICORP) – an affiliate of the Organisation of Arab Petroleum Exporting Countries (OAPEC) – held its 31st Ordinary Meeting on Saturday 7th April, 2007 in Cairo, Arab Republic of Egypt.
The meeting was chaired by Mr. Abdullah Al-Zaid, Chairman of the Board of Directors, and was attended by representatives from other member states namely: Arab Republic of Egypt, Syrian Arab Republic, United Arab Emirates, Kingdom of Bahrain, Democratic and Popular Republic of Algeria, Republic of Iraq, State of Qatar, State of Kuwait and the Socialist People’s Libyan Arab Jamahiriya. The meeting was also attended by Mr. Ahmad Bin Hamad Al-Nuaimi, Chief Executive and General Manager of (APICORP).
Mr. Ahmad Al-Nuaimi declared that the General Assembly approved the 31st Annual Report and the audited Financial Statements for 2006. The Financial Statement disclosed that the company operations for 2006 achieved a net profit of US$51 million, compared to US$35.8 million for 2005 (before the addition of US$58.8 million – net profit achieved from the selling of the Egypt Fertilizers Company in 2005). As a result, net profit for 2006 surpassed that of 2005 by 42%. It worth mentioning here that these good results were achieved through the generous profits received from the company’s equity participation in 2006, coupled with the rise in interest income.
Total assets rose to US$2.6 billion, compared to US$2.3 billion in 2005, a 13% increase; while total shareholders also rose to US$897 million, compared to US$848 million in 2005, or an approximately 5.8% increase.
In accordance with the Statute of the Corporation, the equivalent of 10% from the net profit was transferred to the legal reserve. The General Assembly endorsed the Board of Directors recommendation for the distribution of US$20 million as cash dividends to the shareholders for the 2006.
Mr. Al-Nuaimi added that, the value of the Corporation’s direct equity investments rose by 9.4% above their 2005 level of US$234 million to around US$257 million in 2006. On new equity participation’s front, APICORP, together with Dana Gas of Bahrain and the Egyptian Natural Gas Company (GASCO), agreed to establish the Egyptian Bahrain Gas Derivatives Company (EBGDCO), with a US$23 million capital of which APICORP owns 20%. APICORP also took a 7% equity in the US$430 million capital of the Egyptian Emthanex Methanol Company.
Mr. Al-Nuaimi continued that APICORP’s Board of Directors held its 1st meeting for 2007 on Friday April. It considered matters on the agenda related to the Corporation’s investment and financing activities. He added that the project and trade finance activity was robust in the Arab region during 2006, where APICORP played leading and major roles in the arrangement of project finance loan facilities totalling US$13 billion, with APICORP underwriting and commitment totalling US$2.4 billion, compared to US$10 billion in 2005 and a final take of US$ 800 million.
Mr. Al-Nuaimi went on to say that in support of Arab oil exports during 2006, APICORP participated in trade finance facilities amounted to US$1.1 billion, with its final take of US$175 million, compared to US$685 million in 2005 and a final take of US$53 million.
As far as project and trade finance activities as concerned, during the period from January to March 2007, APICORP participated in the financing of petroleum and petrochemical projects totalling US$1.9 billion, with APICORP’s final take of US$100 million. Also during the same period, APICORP was mandated to provide financial advisory services in Saudi Arabia for project finance transactions amounted to around US$1 billion.
At the close of the session, members of the Board of Directors expressed their thanks and gratitude to the shareholder governments for the support and assistance they have given to the Corporation since its establishment back in 1977. The Board of Directors also commended the special care the Corporation receives from the government of the Custodian of the Two Holy Mosques, Kingdom of Saudi Arabia, the host country, which has been conducive in achieving the Corporation’s objectives.
In conclusion, members of the General Assembly, Chairman and members of the Board of Directors expressed their thanks and appreciations to the Arab Republic of Egypt for the cordial reception and generous hospitality extended to them during their stay in Egypt.