Riyadh – Mubasher: The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, generated a gross operating income of $144.7 million and a net profit worth $54.8 million during the first half (H1) ended 30 June 2020.
Though down by 20% and 22%, respectively, from the year-ago period’s results, the achieved net profits are notable, given the current market conditions, according to a press release on Sunday.
Revenue was largely affected by the drop in dividends from portfolio companies and revaluations in the equity investments portfolio due to the pandemic.
“Notwithstanding the triple crisis of COVID-19, oil price volatility, and economic downturn, APICORP continued to go from strength to strength ... [with] a historic callable capital increase, a highly successful benchmark bond issuance, a $500 million countercyclical support package, being assigned a second rating of ‘AA’ with a stable outlook from Fitch, and forging new partnerships with other leaders in key projects within the energy space,” said CEO of APICORP, Ahmed Ali Attiga.
“The robust financial and risk metrics, as well as profit-generating ability during challenging times of the first half of 2020, demonstrate APICORP’s ability to navigate unprecedented economic challenges. In particular, the liquidity metrics have shown tremendous resilience to withstand market shocks due, in part, to our deep and diverse funding base, while the capital adequacy ratio of 29.2% reflects the high-quality nature of our portfolio,” remarked Chief Financial Officer (CFO) of APICORP, Sherif Ayoub.
Key highlights from H1-20
APICORP’s callable capital was increased to $8.5 billion while the authorised capital and subscribed capital were raised to $20 billion and $10 billion, respectively. Moreover, the company issued a benchmark $750 million dollar-denominated bond in June that attracted a robust and diverse investor demand.
Furthermore, APICORP acquired a 20% equity stake in Jordan Wind Project Company and provided $40 million in financing to the $245 million state-of-the-art Dammam Independent Sewage Treatment Plant (ISTP), the first ISTP in Saudi, a key project that will help underpin the sustainability of the national utilities network.
