Profit rises at Apicorp development bank

Saudi Arabia-based Arab Petroleum Investments Corp (Apicorp) posted a 2.4 per cent increase last year in adjusted net profit as the multilateral development bank continued to invest in the energy sector despite the oil price slump.

Net profit reached US$107.6 million, up from $105m a year earlier. Net interest income rose by 12 per cent to $44.9m from the year earlier.

Last year, Apicorp allocated an investment provision of $16.78m, higher than in 2014, because of “geopolitical and economic uncertainty in sev­eral parts of the Mena region”.

Apicorp was set up in 1975 by the 10 member states of the Organisation of Arab Petroleum Exporting Countries. It invests in equity, provides project loans, trade finance, advisory and research to the energy industry in the Mena region.

The bank said it would con­tinue to invest in the energy sector and is looking for deals.

“We can also point to a healthy pipeline of potential investments,” said Aabed bin Ab­dulla Al Saadoun, Apicorp’s chairman. “Volatile markets often unearth attractive opportunities and we are actively examining a number of them.”

Apicorp says that $611 billion in energy investments are planned up to 2020 in Mena and about $289bn has been committed to projects under execution, presenting investment opportunities for the bank.

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