KIPCO re­ports 8% rise in net profit for 9 months of 2016 Group is able to cope with chal­lenges: Ab­dul­Salam

Kuwait Times - - BUSINESS -

KIPCO - the Kuwait Projects Com­pany - has an­nounced a net profit of KD 40 mil­lion ($132.7 mil­lion) for the first nine months of 2016, an in­crease of 8 per­cent on the KD 36.9 mil­lion ($122.4 mil­lion) re­ported for the same pe­riod of 2015.

Earn­ings per share in­creased 11 per­cent in the first nine months of the year, stand­ing at 24.62 fils ($ 8.17 cents) from 22.11 fils ($7.3 cents) per share re­ported for the same pe­riod in 2015. KIPCO’s net profit for the three months ended Septem­ber 30, 2016, came to KD 12 mil­lion ($39.8 mil­lion) from the KD 11.8 mil­lion ($39.2 mil­lion), re­ported for the same pe­riod last year. The com­pany’s to­tal rev­enue for the first nine months of 2016 in­creased by 8 per­cent to KD 487.3 mil­lion ($1.6 bil­lion) com­pared to KD 451.4 mil­lion ($ 1.50 bil­lion) re­ported for the first nine months of last year.

KIPCO’s con­sol­i­dated as­sets in­creased in the first nine months of the year to KD 9.95 bil­lion ($33 bil­lion) from KD 9.58 bil­lion ($31.8 bil­lion) at year-end 2015.

Tariq Ab­dul­Salam, KIPCO’s Chief Ex­ec­u­tive Of­fi­cer - In­vest­ment, said KIPCO’s re­sults in the first nine months of the year demon­strate the abil­ity of the Group’s core com­pa­nies to cope with the global eco­nomic cir­cum­stances, as well as the chal­lenges that the re­gion is wit­ness­ing:

“The re­sults of the first nine months of the year are in line with our ex­pec­ta­tions for 2016. De­spite the dif­fi­cult eco­nomic con­di­tions we are ex­pe­ri­enc­ing lo­cally and re­gion­ally, the per­for­mance of our core com­pa­nies will al­low us to achieve the fore­casted high sin­gle digit growth by the end of the year.”

KIPCO re­cently re­paid its $500 mil­lion bond, is­sued un­der its EMTN Pro­gram in 2009. The bond re­pay­ment will re­sult in an an­nual in­ter­est sav­ing of ap­prox­i­mately KD 6 mil­lion (around $20 mil­lion). The com­pany will have no fixed term debt re­pay­ments to make un­til 2019.

The KIPCO Group is one of the big­gest hold­ing com­pa­nies in the Mid­dle East and North Africa, with con­sol­i­dated as­sets of US$ 33 bil­lion as at 30 Septem­ber 2016. The Group has sig­nif­i­cant own­er­ship in­ter­ests in over 60 com­pa­nies oper­at­ing across 24 coun­tries. The group’s main busi­ness sec­tors are fi­nan­cial ser­vices, me­dia, real es­tate and man­u­fac­tur­ing. Through its core com­pa­nies, sub­sidiaries and af­fil­i­ates, KIPCO also has in­ter­ests in the ed­u­ca­tion and med­i­cal sec­tors.

Tariq Ab­dul­Salam

BRE­MEN: Vin­tage cars of man­u­fac­turer Borg­ward are pic­tured in Bre­men, north­ern Ger­many yes­ter­day. Cars bear­ing the stamp of once-de­funct man­u­fac­turer Borg­ward will once again roll off an assem­bly line in north Ger­many from 2018, the firm said in a state­ment yes­ter­day. — AFP

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