APICORP posts highest-ever net comprehensive income of $108.7 mln in H1 2023

Khalid Ali Al-Ruwaigh, CEO of APICORP

The Arab Petroleum Investments Corporation (APICORP), a multilateral energy-focused financial institution, today announced its financial results for the period ending June 30, 2023.

APICORP reported strong results, recording its highest-ever half year net comprehensive income of USD 108.7mn, a significant 87% year-on-year (YoY) compared to June 2022. Net operating income increased 32% YoY to USD 129mn, capitalizing on operations efficiencies, rising interest rate environment, and funding optimization.

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. This includes APICORP recording better than expected capital gains from its successful exit from Ashtead Technology.

Total assets for the period registered a notable growth of 10.3%, due primarily to long-term external funding (USD 600mn) taken in Q1 2023 to replace the aged borrowings in Q4 2022.

In addition to its record financial performance, APICORP also maintained its high credit rating from Moody’s (Aa2) and Fitch (AA) on the strength of sustained robust profitability and strong governance and risk management.

Moreover, the Corporation finalized its five-year business strategy which maximizes its impact role to accelerate the energy transition. It has also initiated a rebranding exercise to reflect its broader role in the energy sector.

Dr. Aabed Al-Saadoun, Undersecretary for Oil and Gas Affairs, KSA Ministry of Energy and Chairman of APICORP, stated, “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. We look forward to continue this robust momentum with more meaningful impact-driven investments which support the energy transition agenda of our member countries and broader MENA region.”

Commenting on the results, Khalid Ali Al-Ruwaigh, CEO of APICORP, said, “Our strong performance in the first half of the year demonstrates that we have successfully delivered on our mandate to create value for our stakeholders while building for the future. Taking advantage of the favorable interest environment, we continued to optimize our business structure, operations, and expand our range of innovative impact-driven financial and investment solutions. Not only do we carefully observe the short-term results, but also we plan for the future of APICORP, hence we have finalized our five year corporate strategy and launched the rebranding exercise. In doing so, we strive to further cement our legacy as a leading enabler of a secure and sustainable energy future for the region.”

Business Line Highlights

Investments

The Corporation’s investment portfolio increased for the period from USD 1.2bnto USD 1.3bn, with the successful exit from Ashtead Technology recording better-than-expected capital gains.

Corporate Banking

The Corporate Banking portfolio grew 5% YoY to USD 4.3bn and recorded a 10% increase in net interest income to USD 45.9mn for the period, benefiting from a favorable interest rate environment.

Treasury & Capital Markets

The Treasury & Capital Markets portfolio increased by USD 1bn YoY to reach USD 3.9bn, recording a net income of USD 11.9mn.