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