Kuwait's KIPCO first half profit rises sharply

AFP , Tuesday 2 Aug 2011

Emirate's biggest private holding firm sees 295 per cent rise in profits, a welcome revival after being hit hard by the global financial crisis


Kuwait Projects Co, the biggest private holding firm in the Gulf state, said on Tuesday its net profit for the first half of 2011 rose sharply thanks to good performance by its affiliates. 
KIPCO posted a net profit of 16.6 million dinars (US$61m, 43m euros), a massive increase of 295 per cent over the 4.2m dinars ($15.4m) posted in the same period last year.
Net profit in the second quarter rose five percent to $31.2 million from $29.7 million, the company said. 
Like most Kuwaiti investment companies, KIPCO and its affiliates have been hit hard by the global financial crisis. 
KIPCO chief executive officer for investment Tariq Abdulsalam said the results were in line with the company's expectations. 
"Our first half results -- and the growth trends underpinning them -- have met our expectations ... This is an indication perhaps that regional and local markets are beginning to stabilise and recover some momentum," he said.
Total revenues for the first six months of 2011 rose nine per cent to $656.6 million from $601.2 million. 
KIPCO consolidated assets dropped five per cent to $19.75 billion on 30 June this year from $20.8 billion at the end of 2010. 
KIPCO has significant ownership interests in a portfolio of more than 70 companies operating across 26 countries. 
It focuses on financial services, insurance and media. It also has interests in the real estate, manufacturing, aviation, education and management advisory sectors.
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