Net profits at The Arab Petroleum Investments Corporation (Apicorp) fell by 26 percent to $20 million in 1994. The Al-Khobar based corporation, which is primarily concerned with the finance of petroleum projects and industries in the Arab world, stated: ‘This decline is attributed to sharp gyrations in both interest rate levels and major currencies exchange rates which, jointly, adversely impacted the global equities and bonds markets, which negatively affected the corporation’s portfolio holdings of various securities.’

Total assets were up 3.5 percent on the previous year at $1,310 million. Apicorp has continued its financing of project and trade transactions, participating in 15 loans valued at $2,200 million in total, of which the corporation booked $180 million. Equity participation in petroleum and petrochemical projects remained at $66 million with Apicorp’s subscribed capital commitment to these projects amounting to $30 million. As in previous years, the total share dividend for 1994 was $20 million.

The board of directors has endorsed Apicorp’s participation in syndicating a $250 million loan to Qatar, in support of government petroleum projects (MEED 16:12:94). This policy is in line with the board’s strategy to co-finance – with other Arab and international financial institutions – petroleum and petro-chemical projects in parts of the Arab world.

The corporation is very highly capitalised, with shareholders’ funds remaining at $560 million, representing 43 per cent of total assets and liquid assets of $688 million representing 52 per cent of total assets. The board has stated that it is well positioned to exploit future opportunities as the world economic recovery takes hold.