Apicorp’s business results in 2022 (Arab Petroleum Investments Company) recorded strong financial results for the fiscal year ending on December 31 (2022), with comprehensive net income of $164 million.
Today, Wednesday, March 15 (2023), the multilateral financial institution announced recording strong financial results, in light of its investment and strategic decisions during the past year, which witnessed fluctuations that affected the economic scene, pushed global stock prices to decline, and raised interest rates, according to press release.
According to Apicorp’s business results in 2022, the general budget achieved a growth of 10.8% year on year, recording $8.85 billion, while net comprehensive income increased by 40%, recording $164 million, according to information seen by the specialized energy platform.
Operating income and general budget
The total operating income of the treasury and securities management assets amounted to $70 million, after recording losses of nearly $12.5 million in 2021, according to the data and information seen by the specialized energy platform.
At the same time, Apicorp’s business results in 2022 witnessed strong growth in the general budget, in light of a 48% increase in treasury and securities management assets, amounting to $3.27 billion by the end of 2022, which is growth due to the availability of good investment opportunities in the financial markets. And additional funding amounts not distributed by the Finance Department.
The total operating income from investment management in the Saudi company increased by 11%, exceeding $137 million in 2022, due to the increase in dividends to $121.5 million, in addition to more than $15.5 million in capital gains, resulting from the sale of shares of companies in the company’s investment portfolio. including Saudi Aramco.
In addition, the assets of Apicorp’s investment portfolio increased by $191 million, to reach $1.2 billion in 2022, on the back of upward revaluation of some investments.
Apicorp’s business results in 2022
Apicorp’s business results in 2022 made progress in the field of sustainability, as part of its endeavors for a balanced transformation in the energy sector, including the allocation of more than $335 million of the proceeds of its first green bonds for projects related to the environment, according to information seen by the specialized energy platform.
In addition, the company launched the first voluntary carbon offset financing, compliant with the provisions of Islamic law, in the Arab region, and the company became the first Arab financial institution to obtain a voluntary “A2” sustainability rating from Moody’s, which reflects its success in integrating environmental standards and good governance in its strategy, operations and risk management.
In terms of production lines, the Projects and Trade Finance Department contributed to enhancing the company’s total profits during 2022, given the volume of its business and the total revenues achieved, as the total operating income amounted to $198 million, an increase of 62% from 2021, and 8% from the budgeted income, as The administration’s assets at the end of December 2022 amounted to $4.2 billion.
Innovative financial and investment solutions
The company’s chairman, Dr. Abed Al-Sadoun, said that the results of Apicorp’s business in 2022 confirm its commitment to excellence in its work, achieving value for all parties, and confirms its position as a reliable partner for the energy sector in the Arab region.
He added, “The Arab Petroleum Investments Company has become an active party in supporting a balanced transformation in the energy sector, as it continued to develop more innovative financial and investment solutions, guided by its strategic priorities and its track record of supporting projects that have a positive and tangible impact on the economy and society.”
Al-Sadoun explained that the favorable environment for the average interest rate enhances the performance of the Project and Trade Finance Department and the Treasury and Securities Department, adding: “Despite the increase in the financing cost by about $54 million on an annual basis, to reach $128 million by the end of 2022.”
He pointed out that the increase in the cost of financing came as a result of the sharp increase in the average interest rate for a period of 3 months, as it jumped from 0.16% in 2021 to 2.38% in 2022. However, the assets of the Project and Trade Finance Department in Apicorp achieved a total operating income of $ 198 million. in 2022, compared to about $122 million in 2021.
In turn, the CEO of Apicorp, Khalid bin Ali Al-Ruwaij, said that the company was able to deal efficiently with market fluctuations, thanks to its high flexibility, which reflected positively on its income and its general budget, as the company’s vision was able to exploit the opportunities provided by market conditions to record exceptional results at all levels. departments.
He stressed that the high interest rate environment, on the other hand, had a significant positive impact on the company’s performance, although at the same time it imposed great challenges in terms of financing costs, which were compensated by developing the efficiency of financing solutions offered by Apicorp.
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