Business & Finance Club - Dubai : The Arab Petroleum Investments Corporation (Apicorp), a multilateral bank owned by Arab states, has reported an above-budget net income of $47 million for the first six months of 2010, up 95 per cent over the same period last year.

Apicorp is a multilateral bank owned by the ten member states of the Organization of Arab Petroleum Exporting Countries (OAPEC). The UAE government owns a 17 per cent stake in the bank.

Ahmad Bin Hamad Al-Nuaimi, Apicorp chief executive and general manager said, 'The surge in net income reflects the sound financial fundamentals the organization maintained despite the current economic environment that has adversely affected credit and capital flows.'

'Not only have we remained self-sufficient in meeting our financial obligations at the height of the crisis, but the fact that Apicorp exceeded budgeted estimates for the first half points to the viability of its business model,' he explained.

Al Nuaimi pointed out that the excellent results for the first half of the year have given Apicorp a stable foundation for implementing its next phase in its business plan to optimize its funding mix and to diversify its investments in new sectors within the oil and gas industry.

'At the end of June 2010, Apicorp's total income jumped to $52 million, registering a 75 per cent  rise over the same period last year. Assets climbed to $ 4.3 billion from $4.1 billion on December 31,  2009.

Total shareholders’ equity also reached $1.069 billion at the end of June from $1.002 billion at the end of 2009.

“Apicorp is well-positioned to benefit from the turnaround in energy investments that will accompany economic recovery,” Al Nuaimi said.

“Hydrocarbon and energy assets are expected to outperform others as the global economy recovers. Large oil and gas projects expected to be implemented in the Arab world over the coming years represent exceptional investment opportunities. We expect Apicorp to play a meaningful role in these opportunities.”

Earlier this year, the bank obtained a strong backing for its credit profile when it received a first-time issuer rating of A1 from Moody’s Investors Service for long-term debt and Prime-1 for short-term debt.

Apicorp has an authorized capital of $1.2 billion and a fully paid-up and subscribed capital of $550 million.