Kuwait Projects Company (KIPCO), one of the largest and most diversified private sector companies in Kuwait, has announced record net profit of KD 38 million (US$ 130 million), or 37.20 fils (12.74 cents) per share, for the year ended December 31, 2005, a 51 per cent increase compared to the KD 25.24 million (US$ 85.64 million) or 25.05 fils (8.5 cents) earned per share in 2004.
The board has recommended a cash dividend of 25 per cent (25 fils per share) for 2005, up from 18 per cent (18 fils per share) in 2004.
KIPCO, with a portfolio of some 55 companies in financial services, media & telecommunications, management & advisory, real estate and industry throughout the Middle East and North Africa, also posted a 32 per cent rise in total consolidated assets, up to KD 1,064 million (US$ 3.644 billion) from KD 807 million (US$ 2.738 billion) in 2004. Total revenue was up 65 per cent to KD 119 million (US$ 407 million) compared to 2004’s KD 72 million (US$ 244 million).
The record figures - KIPCO’s 14th year of unbroken profitability – exceeded 2005 profit and cash dividend targets set by KIPCO managing director and chief executive officer Faisal Al Ayyar early in the year at the second annual KIPCO “Shafafiya” (Transparency) Financial Outlook Forum.
“These record figures reflect the focus of the group’s core listed companies each of which is a leader in its respective industry sector. The value of our operating companies is in the way they enrich the lives of their customers through offering innovative products and services and continually harness the latest technologies,” said Al Ayyar.
During the year, the market value of KIPCO’s investments in core listed subsidiaries and associated companies rose by KD 239 million (US$ 819 million), an increase of 69 per cent from KD 348 million (US$ 1.18 billion) in 2004, to KD 587 million (US$ 2.01 billion) at the end of 2005. These results are not reflected in the profit and loss account nor in shareholders equity due to accounting standards.
KIPCO inaugurated the series of “Shafafiya” forums in 2004 to detail the financial performances and forecasts of KIPCO and its core listed group companies to fund managers, analysts, shareholders and clients, and respond openly to their questions.
The results of KIPCO’s core companies underpinned the strong performance of the group. All KIPCO listed core companies met or exceeded the targets announced at the “Shafafiya” Financial Outlook Forum.
United Gulf Bank achieved record earnings of KD 23.65 million (US$ 81 million) a jump of 87 per cent over the previous year; Gulf Insurance Company’s net profit grew 21 per cent to KD 6.99 million (US$ 24 million); Burgan Bank’s net profit rose 43 per cent to KD 42.38 million (US$ 145 million); and Wataniya Telecom’s net profit increased 32 per cent to KD 52.83 million (US$ 181 million).
KIPCO is one of Kuwait’s largest private sector companies with more than US$ 15 billion of group assets. The group employs more than 12,000 people internationally and its shares are among the most actively traded on the Kuwait Stock Exchange.
