Kuwait Projects Company (Kipco) said it was on track to meet its full-year income targets despite a 69.3 per cent drop in first-quarter net profit as margins were hit by the US dollar's appreciation against the dinar.

Net profit for the first three months to end-March plunged to KD9.2 million ($31.63 million) from KD30 million in the same period last year, the country's biggest investment firm said in a statement on Saturday.

'First quarter profit, at the parent level, was affected by the US dollar's recent sharp appreciation against the Kuwaiti dinar,' Kipco said in a statement.

The firm made a net revaluation loss of KD6 million on currency fluctuations in the first quarter, it said, without elaborating. It added that overall uncertainty in global and local economies was also weighing.

Kipco, which owns stakes in 50 companies and operates in 21 countries, was on track to double its profit this year and still aims to boost revenue by more than 10 per cent, a target it set for itself in March, spokesman Robert Hipkins told Reuters.

The firm made net profit of KD24.1 million in 2008. Kipco vice chairman Faisal Al-Ayyar said in the statement he expects the recovery of the local economy to have a 'positive effect' on the firm's results.

'Our core operations continue to deliver good performances, while maintaining prudent provisioning,' he said.

Earnings per share in the first quarter was 8.73 fils,compared with 27 fils per share in the year-earlier period, while total revenues fell to KD113.4 million after KD127.9 million a year ago, it said.

Total assets rose 5.8 per cent to KD5.5 billion in the first quarter, while shareholder's equity fell 4.7 per cent to KD518.4 million.

Kipco has been expanding in the Middle East, mainly in the banking and insurance sector, and plans to launch a $5 billion Middle East pensions product as part of its expansion in 2009, it said earlier.

Chief operating officer Samer Khanachet told Reuters in March the company had narrowed down talks to two European firms, aiming to attract assets under management worth $5 billion for pension products across the region within five to six years.-Reuters