The Arab Petroleum Investments Corporation (Apicorp), the multilateral development bank owned by the ten members of the Organisation of Arab Petroleum Exporting Countries, said it has registered a net profit of $109 million for 2012, the highest-ever in the organisation’s 37 year history.

The 2012 record profits represent a growth of over 3 per cent from the previous year and further highlight Apicorp’s successful track record in generating sustainable returns while effectively supporting the Arab energy industry, said a statement from Apicorp.

The bank's total assets rose to over $5 billion, an increase of 9.6 per cent from 2011 while net asset value per share jumped over 7 per cent to $1,744, it added.

Commenting on the performance, Apricorp CEO and GM Ahmad Bin Hamad Al Nuaimi said, "We are delighted to have achieved record financial results for a third year in a row. Apicorp has a successful history in facilitating the availability of capital for the Arab energy sector, and despite the continued economic headwinds in 2012, it has continued to play a strong counter-cyclical role in supporting its clients across the Arab world."

"Apicorp remains committed to driving efficiency, innovation, enterprise and value creation in the Arab energy industry and these robust set of results have come in a year in which we further increased our investment in supporting the industry’s development," he added.

Apicorp’s strong fundamentals were endorsed by Moody’s upgrade of the multilateral development bank’s issuer and senior unsecured rating from A1 to Aa3 in October last year.

At a time when substantial credit upgrades for financial institutions remain rare, the upgrade distinguished Apicorp as a strong performer in the global banking sector, said Al Nuaimi.

“Apicorp has continued to maintain a very high asset quality and ensure sustainable growth through continued diversification of its business streams and funding portfolios, while also ensuring continued discipline around maintaining strong banking fundamentals. In 2012, we were able to reduce our funding costs, while at the same time increase our lending activity,” he added.

The bank maintained a strong focus on diversifying its funding composition and expanding its services for clients in 2012. In February last year, it closed a three-year SR2.5 billion ($667 million) syndicated Shari’ah-compliant facility aimed at increasing its medium term funding while in October, it partnered with JP Morgan to widen its energy trade finance services.
 
Another key strategic focus in 2012 was the development of specialised investment funds in vital energy sectors, a strategy that resulted in the establishment of the landmark $150 million Apicorp Petroleum Shipping Fund.

"In 2013, Apicorp remains committed to building on its track record of successfully catalysing value creation in the Arab energy industry and to contributing to the economic development of Arab countries. As part of our current five-year strategy, we will continue to investigate opportunities to diversify our investment and financing portfolios into new oil and gas and utility sectors," said the top official.

"We are particularly looking at supporting projects that will boost the region’s midstream and downstream capabilities, which are crucial for Arab countries to maximize economic benefits from energy resources,” stated Al Nuaimi.

Over the last 37 years, Apicorp has invested, as an equity owner, in a total of 22 oil and gas joint venture projects worth in excess of $16 billion.-TradeArabia News Service