KIPCO announces first half net profit KD 16.6 million (US$ 60.5 million)

‘Growth signs continue’ says company’s CEO Investment

Kuwait : KIPCO - the Kuwait Projects Company - has announced a net profit of KD 16.6 million (US$ 60.5 million), or 14.04 fils (US$ 5.12 cents) per share for the first six months of 2011 - an increase of 295 per cent compared to the KD 4.2 million (US$ 14.4 million) profit, or 3.58 fils (US$ 1.23 cents) per share, for the same period last year.

KIPCO’s second quarter profit (for the three months ended 30 June, 2011) of KD 8.5 million (US$ 30.97 million) was an increase of 5 per cent on the KD 8.1 million (US$ 29.2 million) reported for the first three months of 2011.


KIPCO’s total revenues for the first six months of 2011 increased by 9 per cent to KD 178.8 million (US$ 651.5 million) compared to the KD 163.7 million (US$ 562.8 million) reported for the first half of 2010.



The company also saw a rise in operating profit to KD 34.4 million (US$ 125.34 million) for the first half of 2011 - an increase of 59 per cent from the KD 21.6 million (US$ 74.27 million) reported in the first half of 2010.

KIPCO’s consolidated assets decreased in the first half of 2011, to KD 5.38 billion (US$ 19.6 billion) from KD 5.66 billion (US$ 20.2 billion) for the year-end 2010.

Mr Tariq Abdulsalam, KIPCO’s Chief Executive Officer - Investment, said KIPCO’s second quarter results were in line with the company’s expectations:




“Our first half results – and the growth trends underpinning them – have met our expectations. For example, Burgan Bank Group - our regional commercial banking operation - has now achieved growth in its last four consecutive quarters, while our businesses in sectors such as insurance are also beginning to show some growth trends. This is an indication perhaps that regional and local markets are beginning to stabilize and recover some momentum.”





“While it may be too early to claim that the worst of the financial crisis is over and that we have passed a point where profits will begin to return to pre-crisis levels, perhaps the signs of growth we are seeing indicate a gradual recovery within local and regional markets. As a result, we continue to be optimistic that by year end, we will see an improvement in profitability across our key operations.”