The Arab Petroleum Investments Corporation (Apicorp), a multilateral development bank established in 1975 by the 10 member states of the Organization of Arab Petroleum Exporting Countries (Oapec), has announced its full year consolidated financial results for the period ending Dec. 31, 2015 which showed that it continued to perform strongly, with total income increasing to $162.04 million in 2015, compared with $156.28 million in 2014. Its net profit before provisions grew to $124.38 million from $118.51 million for the previous year. In a press statement Sunday, the company said it has maintained its prudent approach, setting aside an investment provision of $16.78 million, which was slightly higher than in 2014 and reflects continuing geopolitical and economic uncertainty in several parts of the MENA region. This resulted in an adjusted net profit of $107.60 million for 2015, compared with $105.03 million in the previous year. As of Dec. 31, 2015, total assets were $5.65 billion and shareholders' equity increased to $1.91 billion. During the year, Apicorp continued to implement its strategy of rebalancing its lending and equity investment portfolios, through increasing the level of equity investments. This saw Apicorp make a significant investment in Saudi Mechanical Industries (SMI), in addition to Apicorp's participation in TAQA's capital increase. Total direct equity investments, were $922.53 million as of Dec. 30, 2015, 6.5% higher than 12 months previously. The year 2015 also witnessed the establishment of a $3 billion sukuk program, followed by the successful placement of a five year $500 million sukuk in October 2015. Becoming a regular issuer of sukuk in global markets represents a significant strategic step for Apicorp, and positions the company's credit alongside its multilateral development banks peers. In February 2015, Apicorp participated in a successful $200 million refinancing arrangement for National Petroleum Services Group (NPS) – Apicorp's stake is 29%- in conjunction with HSBC, Emirates NBD and Al Hilal Bank. Net interest income for the year came in at $44.91 million, 12% higher than in 2014, a better yield and better return on capital, testimony to a highly effective management of the loan book and a reduction in funding costs. — SG
