Unaudited interim results at Arab Petroleum Investments Corporation (Apicorp) show strong earnings growth in the first six months of the year. Net profits of $26.4 million were posted, a 29 per cent improvement on the same period of last year.

A sharp contraction in the levels of provisioning – down 63 per cent at $2.2 million – released profit straight to the bottom line. Strong interest income growth further boosted the institution’s performance. An increase in Apicorp’s core lending business is clearly visible. Total loans and trade finance credit lines grew 29 per cent between 30 June 1999 and 30 June 2000, and now account for more than half of Apicorp’s total assets.

In the second quarter of the year, Apicorp participated in three major financing deals in the Gulf: the $105 million facility for Jubail Fertiliser United Company in Saudi Arabia;

the $600 million loan for Saudi Arabia’s Arabian Petrochemical Company (Petrokemya); and the $400 million facility for the phase two NGL-4 project of Qatar General Petroleum Corporation.

Apicorp’s balance sheet was boosted in June with the receipt of a $200 million, five-year syndicated loan priced at 40 basis points over Libor (MEED 23:6:00;