(MENAFN- The Peninsula) DOHA: The Arab Petroleum Investments Corporation (Apicorp), a multilateral development bank established by the 10 member states of the Organization of Arab Petroleum Exporting Countries (Oapec), has reported a total profit of $55.1m for the six months ended June 30 2016, marginally lower than the $56.5m from the first half of 2015. The solid performance was achieved despite challenging market conditions resulting from the fall in oil prices, Apicorp stated yesterday.
Moody";s Investors Service has recently affirmed Apicorp";s foreign currency issuer rating at 'Aa3” with a 'Stable” outlook. In maintaining its rating status, Moody";s cited the increase of Apicorp";s callable capital in 2016 from $500m to $1bn. Moody";s also noted the improvement of the Company";s liquidity profile, with liquid assets significantly higher than liabilities. Other factors underpinning Apicorp";s credit rating were a strong capital adequacy position, moderate balance sheet gearing, conservative provisioning for non-performing assets and the company";s sources of funding becoming more diverse and enjoying longer maturity profiles.
Since the commencement of the second half of the year, Apicorp has been very active, working on a broad range of financing and investment opportunities. Three transactions have already been announced: in July, the Company launched a landmark shipping fund with the National Shipping Company of Saudi Arabia (Bahri), which will invest up to $1.5bn in 15 Very Large Crude Carriers (VLCCs). In October, Apicorp issued a $300m Formosa bond in the Taiwanese market; and, most recently, the Company arranged a 3-year $100mn Murabaha Financing Facility for Egyptian General Petroleum Corporation (EGPC).
Dr. Raed Al Rayes (pictured), Deputy CEO & General Manager of Apicorp, commented: 'Apicorp has continued to perform strongly, delivering value for its shareholders, achieving healthy levels of profitability and fulfilling its mandate to promote cooperation and economic integration in the Arab hydrocarbon and petrochemical industry.
'We remain financially strong, as demonstrated by the maintaining of our Moody";s Aa3 rating. I am especially pleased by this, as it is a result of the risk appetite framework which the Board has put in place to instill a culture of risk awareness throughout the organization. The fact that this has been achieved in a more challenging market than previously is all the more creditable.”
Apicorp is one of the five organizations established by OAPEC to promote cooperation and economic integration in the Arab hydrocarbon and petrochemical industry.
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