Dubai: The Arab Petroleum Investments Corporation (Apicorp), a multilateral development bank in which the UAE has a 17 per cent stake, yesterday said its net profit for the year increased 62 per cent to $95 million, compared with the year ago period, as it bene-fited from a strong capital position and low leverage.
Total assets for the period rose to $4.3 billion, a five per cent increase over their 2009 levels of $4.1 billion, while total shareholders' equity rose by 13 per cent to reach $1.1 billion.
Apicorp also posted a net income of $39.3 million in the first quarter of 2011, with total assets and total shareholders' equity reaching $4.42 billion and $1.16 billion respectively.
"The results for 2010 reflect our continued commitment to maintaining strong banking fundamentals by strategically and prudently managing our equity and debt portfolios," said Ahmad Bin Hamad Al Nuaimi, Apicorp's chief executive and general manager.
Last year the bank initiated a five-year plan to resolve asset-liability mismatches with more sustainable financing options and even restructure some of its investments to release funds for new investment opportunities.
In December last year the bank sold a 12 per cent stake in Egypt-based Alexandria Carbon Black Company (ACBC) to India's Aditya Birla Group — the majority shareholder of the company.
Al Nuaimi said yesterday that Apicorp 2010 results provide an impetus to its five-year plan of expanding its equity portfolio with midstream sector projects.
"Currently, we are investigating opportunities in shipping, petroleum tank farms, refining and related infrastructure investments. We are confident that Apicorp will meet its target of doubling its direct investment portfolio by the end of its 2010-2014 five-year plan," he said.
"The 2010 results provide an impetus to our five year plan of expanding our equity portfolio with midstream sector projects. Currently, we are investigating opportunities in shipping, petroleum tank farms, refining and related infrastructure investments," said Al Nuaimi.
The bank said yesterday that continued to maintain a strong presence in the project finance market with a robust debt portfolio.
Apicorp is now seeking to expand as well as develop new finance products.
Net income posted by bank in first quarter
Increase in total shareholders' equity