APICORP Reports net profit of USD54.8 million in first half of 2020
The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, announced its half-year results for the six months ended 30 June, 2020. Gross operating income for the period stood at USD144.7 million while net profit reached USD54.8 million. While down from the corresponding period last year at 20% and 22%, respectively, the net profit results are notable under the current market conditions due to the COVID-19 pandemic and oil price fluctuations. The revenue was mainly affected by the decrease in dividends from portfolio companies as well as revaluations in the equity investments portfolio due to the pandemic.
Income from APICORP’s Treasury and Capital Markets rose to USD60.4 million, a 38% increase compared to the corresponding period of last year. Income over LIBOR from Corporate Banking for the period remained the same as compared to the first half of last year, reaching USD50.3 million. Moreover, the Corporation maintained its annualized efficiency ratio at 25.6% for the period, the same as for the 2019 financial year.
Over the period, APICORP’s balance sheet grew 10% to reach USD 8.1 billion, due in large part to the growth in the size of its Treasury and Capital Markets portfolio which was funded mainly by the issuance of a benchmark USD750 million bond in June 2020. This has contributed to APICORP’s readiness to fund its future business needs.
APICORP also further bolstered its financial sustainability by increasing the share of its liabilities whose maturity is beyond two years to 45% of its total liabilities and shareholders’ equity, up from 40% in December 2019.
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