Mubasher: The Arab Petroleum Investments Corporation (APICORP) posted a 17% annual increase in its net recurring income over fiscal year (FY) 2019 at $112 million from $96 million, excluding non-recurring items, by 2018 year-end.
APICORP’s strong profitability in 2019 was backed by corporate banking and treasury, whose gross income surged by 32% and 24%, respectively, on an annual basis to reach $201 million and $80 million, respectively, according to a press release on Tuesday.
In the meantime, the corporation’s balance sheet growth remained strong and resilient in 2019, recording a 5.7% rise at $7.35 billion from $6.95 billion a year earlier.
The debt-to-equity (D/E) ratio remained in check and reached 2.13 in December 2019, compared to 2.07 in the same month a year ago, whilst the capital adequacy improved slightly to 29.6% from 29.34%.
In October 2019, Moody’s upgraded APICORP’s overall credit rating to ‘Aa2’ from ‘Aa3’, with a ‘Stable’ outlook, owing to its steady improvement in liquidity and funding profile, high-quality assets, amongst other factors. This has made APICORP the only financial institution with an ‘Aa2’ rating across the MENA region.
Commenting on the results, chairman of the board of directors, Aabed bin Abdulla Al Saadoun, said, “As the world enters an unprecedented period of economic uncertainty, I am reassured by the fact that we have closed out the past year on a strong note. Our business lines exhibited exceptional resilience on the back of challenging market conditions presented by both geopolitical, financial, and industry developments in 2019.”
Meanwhile, the CEO of APICORP, Ahmed Ali Attiga, added, “I believe that the work that we have put into diversifying our portfolio in terms of sectors and geography as well as our broad investor base, coupled with our strong financial position, will serve us well in the coming years and allow us to address the current challenges.”
“When the world eventually begins to recover from the dual impact of the coronavirus pandemic and oil price fluctuations, we will most likely see changes in the region,” he concluded.
It is noteworthy that in 2019, APICORP finalised its 2020-2024 corporate strategy in a bid to align with the evolving energy landscape. The strategy is underpinned by a more integrated and agile model, with sustainability embedded in all aspects of operations.