APICORP posts $108.7m in half-year net profit

The Arab Petroleum Investments Corporation’s (APICORP) half-year net profit jumped by 87 per cent year-on-year (YoY) to $108.7m compared to the same period a year ago.

The multilateral energy-focused bank said its net operating income rose by 32 per cent YoY to $129m, driven by operations efficiencies, rising interest rate environment and funding optimisation.

“The corporation’s structural and strategic resilience also facilitated strong performance across all its main business lines as it continues to bolster its legacy of financing for impact,” APICORP said in a statement, adding that the bank’s record financial includes capital gains from its exit from Ashtead Technology.

APICORP’s total assets increased by 10.3 per cent, owing primarily to long-term external funding – $600m – taken in the first quarter of the year to replace the maturing borrowings in Q4 2022.

“The first six months of the year saw APICORP continue to strengthen its financial position with record results and notable achievements at the corporate and business unit levels,” said Dr Aabed Al-Saadoun, undersecretary for oil and gas affairs at Saudi Arabia’s Ministry of Energy and chairman of APICORP.

“We look forward to continuing this robust momentum with more meaningful impact-driven investments that support the energy transition agenda of our member countries and broader MENA region.”

The development bank also maintained its credit rating from Moody’s (Aa2) and Fitch (AA) during the period under review on the strength of sustained robust profitability and strong governance and risk management. Moreover, APICORP finalised its five-year business strategy which maximizes its impact role to accelerate the energy transition.

APICORP adopts new brand identity

The lender said it has commenced its rebranding exercise to reflect its broader role in the energy sector.

“Taking advantage of the favourable interest environment, we continued to optimise our business structure, operations and expand our range of innovative impact-driven financial and investment solutions,” said Khalid Ali Al-Ruwaigh, CEO of APICORP.

“Not only do we carefully observe the short-term results, but also we plan for the future of APICORP, hence we have finalised our five-year corporate strategy and launched the rebranding exercise.”

The multilateral lender’s corporate banking portfolio grew by 5 per cent YoY to $4.3bn while its net interest income rose by 10 per cent to $45.9m in the first six months of the year, buoyed by a favourable interest rate environment.

The bank’s treasury and capital markets portfolio jumped by $1bn YoY to reach $3.9bn, recording a net income of $11.9m.

Last year, APICORP signed a $75m Murabaha agreement with global energy and commodities firm Hartree Partners to fund high-quality voluntary carbon offsets, which will be used to develop environmentally friendly projects worldwide.

Read: APICORP, Hartree sign $75m Islamic facility for voluntary carbon offsets