APICORP net profit rises 31 percent in first half of 2013
Arab Petroleum Investments Corporation (APICORP), the Multilateral Development Bank owned by the ten member nations of the Organisation of Arab Petroleum Exporting Countries (OAPEC), including Qatar, today announced that its net profit for the first half of the year grew 31 percent to USD66 million (QAR240 million) from USD51 million (QAR186 million) for H1 2012.
APICORP’s assets reached USD5.12 billion (QAR18.6 billion) at the end of H1 2013, of which the government of Qatar owns a 10 percent stake in APICORP.
The Multilateral Development Bank also announced that global ratings agency Moody’s has affirmed its issuer rating and senior unsecured rating at Aa3 with a stable outlook. Moody’s also retained its Prime-1 rating for APICORP’s short-term debt.
Ahmad Bin Hamad Al Nuaimi, chief executive officer and general manager of APICORP said, “Our strong profit growth reflects our ability to continuously expand our income streams while ensuring the optimal funding composition that supports sustainable growth. We will continue to widen our investment and financing horizons by exploring new opportunities with a key focus on growing trade finance activities in the region. In the fourth quarter of this year, APICORP will be conducting an extensive exercise to develop a new five-year strategic plan for 2014-2018 that will further support our mandate of raising capital access and enhancing the financial performance of the Arab energy industry.”
APICORP’s investment diversification this year was spearheaded by its first Fund, the APICORP Petroleum Shipping Fund, a USD150 million (QAR546 million) Fund aimed at leveraging growth opportunities in the petroleum product tanker charter market. The initiative, which captured significant interest from the shipping industry, was the first fund in the region aimed at a specific vessel category. At the same time, APICORP continued to rapidly grow its trade and structured commodity finance activities, which since 2011 have complemented its historically strong project finance franchise. Trade and structured commodity finance services and loans provided by APICORP over H1 2013 helped finance hydrocarbon transactions involving the world’s largest hydrocarbon commodity traders transacting with Arab-based refiners.
Since its founding in 1975, APICORP has invested, as an equity owner, in a total of 22 oil and gas joint venture projects worth in excess of USD16 billion (QAR57.7 billion).