The Arab Petroleum Investments Corporation (APICORP), a multilateral financial institution, has disclosed its financial results for the first six months of the year ending on 30 June, 2022.
APICORP continued its post-pandemic growth with major financial and operational achievements against a backdrop of market volatility and inflation concerns that have sparked significant rates hikes and asset pricing fluctuations globally.
At the end of the first half of 2022, the firm recorded a net income of $52mn, a 67% y-o-y increase. Its balance sheet marginally grew by 3% y-o-y to $8.26bn. Net income from operations grew significantly to $97.9mn in H1 2022 from $40.7mn in H1 2021.
Growth in Treasury and Capital Markets
APICORP’s treasury assets reached $2.9bn, representing an increase of $712mn or a 32% y-o-y rise. This was attributed to good opportunities available in money market placements and lower cost of funding for short-term borrowings.
Moreover, the company noted that the treasury income grew by $31.6mn mainly due to restructuring of the investment book and higher gross interest earnings and capital gains from sale of fixed income securities as average price of LIBOR reached 100 bps compared to 18 bps in H1 2021.
“All business units of APICORP’s has continued to deliver growth”
Commenting on the results, Dr Aabed Al-Saadoun, chairman of the APICORP’s Board, said: “The company has continued to deliver robust and consistent results in the first half of 2022, despite growing market volatility and inflation concerns. Our structural and strategic resilience has facilitated exceptional performance in all our business segments as we continue to showcase our economic and community impact and cement our legacy of financing for impact.”
Meanwhile, Khalid Ali Al-Ruwaigh, the CEO of APICORP, added: “Even as the global and regional financial markets are facing economic headwinds, the company recorded an increase in balance sheet and income y-o-y during the first six months of 2022. All business units continued to deliver growth showcasing alignment with our growth strategy.
“The treasury business unit in particular showcased growth led by better money market performance of our investments. Our goals continue to define our ongoing operational and financial performance as we work towards achieving a balanced energy transition and providing financial services and solutions for the energy of tomorrow.”
