Arab Petroleum Investments Corporation (Apicorp), the multilateral development bank owned by the 10 members of the Organisation of Arab Petroleum Exporting Countries, said first half year net profit increased nearly three-fold, buoyed by better performance of its corporate finance and investment divisions.
Net profit for the first half of the year surged to $150.3 million from $41.8m in the year earlier period, the company said in a statement on Wednesday. Total income nearly trebled rising to $169.9m from $60m for the same period last year.
Half year results demonstrated “continued progress” in implementing strategy to diversify business, both in terms of sectors and geographies, with adequate balance established between lending and equity investment, Apicorp chief executive Ahmed Ali Attiga said in a statement.
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Apicorp’s performance for the first half was driven by a 40 per cent increase in net interest income, which climbed to $45.9m. The company attributed this rise to an increase in yield and size of loan portfolio. Dividend income of $33.4m as well as gains realised from the sale of 29 per cent equity investment in Saudi energy firm National Petroleum Services also supported the first half performance.
Apicorp exited NPS, one of the region’s largest oil services companies, selling its equity stake to National Energy Services Reunited Corporation in July.
The firm said at the time the investment was crucial to ensure diversification into the oil and gas sector.
Apicorp’s total assets at the end of the first half stood at $6.6 billion, a 6.3 per cent increase over the same period last year.