Arab Petroleum Investments Corporation (Apicorp), a Saudi-based multilateral bank owned by the Arab states, said it has registered a first quarter net profit of $30.7 million for 2012.

The results comes close on the heels of Apicorp's record performance last year when the company posted an annual net profit of $105.4 million for 2011 – the highest net profit in the company's 36-year history.
 
According to Apicorp, the results surpassed the company’s 2010 profit of $95 million with a 11 per cent growth thus underscoring its rising presence in a challenging environment.

The multilateral development bank, founded in 1975 by the ten members of the Organisation of Arab Petroleum Exporting Countries (OAPEC), also announced total assets of $4.6 billion for 2011, up 7 per cent over its corresponding 2010 figure.

The governments of UAE, Saudi and Kuwait each own 17 per cent stake in Apicorp.

Speaking at the company's general assembly in Cairo, Ahmad Bin Hamad Al Nuaimi, the chief executive and GM of Apicorp said, 'Our success in balancing proactive business expansion with conservative fiscal management has helped it effectively navigate the challenges posed by the volatile global economy and credit environment of 2011.'

The bank's total assets and total shareholders’ equity during the first quarter reached $5.2 billion and $1.3 billion respectively.

In January this year, Apicorp continued to expand its funding mix with a highly successful oversubscribed debut Shari’a compliant club syndicated facility for $667 million, said a company statement.

The assembly outined its major plans for 2012 including Apicorp’s continued portfolio diversification, the success of its strategic divestment for re-investment plan, the expansion of its funding mix, and acquisition of secondary market loan assets from European banks.

The general assembly also discussed and approved the board's recommendation to distribute $45 million as dividends to shareholders, another record in its 36 year history.

According to Al Nuaimi, Apicorp's performance has enabled it to deliver value to its OAPEC shareholders, with net asset value per share increasing from $1,707 in 2010 to $1,824 in 2011.

“With the region’s infrastructure financing landscape being reshaped following the European debt crises, we believe Apicorp will play an even more significant role this year in supporting the Mena energy sector,” he added.
 
The top bank said its research shows that the real economy has continued to face tight credit markets and relatively high borrowing costs.

This is particularly the case in the Mena region where capital inflows, the bulk in the form of dollar loans, have collapsed after European banks reduced their country exposure limits or just pulled back from lending, it added.

According to Al Nuaimi, Apicorp continues to carry out its developmental role by acquiring Arab energy-based loan assets of withdrawing international banks.

Since its founding in 1975, the bank has played a vital role in fostering the development of the Arab energy industry. It has invested in 16 oil and gas JVs. It has also participated in direct and syndicated energy transactions worth an estimated $128 billion.

Apicorp‘s aggregate commitments in these transactions, both equity and debt, are valued in excess of $12 billion, he added.-TradeArabia News Service