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									                                                                                                                                                                                                                                              ARAB TIMES, THURSDAY, AUGUST 9, 2012
     BUSINESS                                                                                                                                                                                                                                                                                       37

                                                           Industries Qatar Q2 profit inches up                                                                                                                    Dubai builder Arabtec posts Q2 loss

    Industries Qatar, the Gulf’s second-           2.09 billion riyals, in a Reuters poll.          Qatar Petrochemical Co (QAPCO) –                          Dubai builder Arabtec, which secured          Arabtec to post an average profit of 78      lion dirhams.
    largest petrochemicals firm, posted a             The company said it had first-half            which is 80-percent owned by                              one of its largest contracts to build part    million dirhams.                                Change in the fair value of available
    slight rise in second quarter profits on       net profit of 4.04 billion riyals, down          Industries Qatar and 20 percent held                      of Abu Dhabi’s main airport in June, on           Revenue for the quarter rose to 1.3      for-sale investments, which include the
    Wednesday, falling in line with ana-           slightly from 4.17 billion in the same           by France’s Total – began operating                       Wednesday reported a loss in the sec-         billion dirhams from 1.2 billion dirhams     company’s holdings of sukuk issued by
    lyst estimates.                                period last year.                                its polyethylene 3 plant during the                       ond quarter as costs and expenses             in the prior-year period.                    big real estate developer Nakheel,
       The Qatari firm had net profit of              Petrochemical         prices    have          second quarter.                                           increased.                                        However, contract costs increased        added 51.8 million dirhams to the bot-
    2.14 billion riyals for the quarter            strengthened in recent months, but                  “The marginal improvement in prof-                        The largest builder in the United          to 1.2 billion dirhams from 1 billion        tom line.
    ended June 30, according to Reuters            worries persist over the impact of a             itability was a result of the group post-                 Arab Emirates by market value made a          dirhams. Administrative expenses                Arabtec, along with Turkey’s TAV
    calculations based on financial state-         global slowdown on industry earn-                ing stronger revenues, given the                          net loss of 11.6 million dirhams ($3.16       jumped 62 percent to 154.2 million           Insaat and Athens-based Consolidated
    ments. T                                       ings in the world’s top oil exporting            addition of Qafco-5 and QAPCO’s                           million) compared to a profit of 29 mil-      dirhams. The builder said it acquired        Contractors Co, won a 10.8 billion
       hat compared with profit of 2.08 bil-       region.                                          LDPE 3 during the quarter,” Egyptian                      lion dirhams a year earlier.                  the remaining 45-percent stake held by       dirham contract from the Abu Dhabi
    lion riyals a year earlier.                       In February, IQ inaugurated Qafco             brokerage Beltone Financial said in a                        The earnings missed forecasts by           three separate partners in its sub-          government to build a terminal at the
       Analysts forecast average profit of         5, a 1 million tonne urea facility while         research note. (RTRS)                                     three analysts, who had expected              sidiary Gulf Steel Industries for 18 mil-    emirate’s airport. (RTRS)

Commercial Bank of Kuwait net KD 0.45m
                      Approval seen as sign of growing Sino-Saudi ties                                                                                               Non-performing loans fall; CAR clocks 18.79 pct
                                                                                                                                                          KUWAIT CITY, Aug 8,                                                                                CBK has endured steep declines in quar-

ICBC wins Saudi branch licence                                                                                                                            (Agencies): Commercial Bank of
                                                                                                                                                          Kuwait announced an operating
                                                                                                                                                          profit before provisions for the
                                                                                                                                                                                                                                                          terly profits for more than a year. Its first
                                                                                                                                                                                                                                                          quarter profits slumped 75 percent while it
                                                                                                                                                                                                                                                          second-quarter numbers in 2011 showed a
RIYADH, Aug 8, (RTRS): Saudi Arabia                                                                                                                                                                                                                       91-percent fall in profit due to impair-
has decided to let Industrial and                                                                                                                         period of KD 47.277 million                                                                     ments.
Commercial Bank of China, the largest                                             Outlook stable                                                          (1H2011: KD 52.333 million).                                                                       Provisions have crimped earnings at
Chinese commercial bank, open a branch                                                                                                                                                                                                                    other Kuwaiti banks, with Burgan Bank
                                                                                                                                                          This was allocated as specific                                                                  saying on Tuesday that impairments rose
in the country, a sign of growing eco-
nomic ties between the world’s top oil
exporter and second-biggest oil con-
sumer, local media said.
                                                  Fitch affirms Ahli Bank                                                                                 and judgemental provisions
                                                                                                                                                          against the loan and investment
                                                                                                                                                          portfolios resulting in a net prof-
                                                                                                                                                                                                                                                          16 percent year-on-year in the second quar-
                                                                                                                                                                                                                                                             National Bank of Kuwait, (NBK) the
   “The cabinet approved the licence...to                                                                                                                 it attributable to shareholders of                                                              country’s largest lender, was forced to take
open a branch in the kingdom and autho-
rised the finance minister to decide on
any subsequent request to open other
                                                  SAOG rating at ‘BBB+’                                                                                   the parent bank for the six
                                                                                                                                                          months to 30th June 2012 of KD
                                                                                                                                                                                                                                                          a $96.4-million provision in the second
                                                                                                                                                                                                                                                          quarter, against potential deterioration in its
                                                                                                                                                                                                                                                          operating environment.
branches of the bank,” the Saudi Press            LIMASSOL, Aug 8, (RTRS): Fitch                     may be possible if ABO is able to devel-             0.451 million (1H2011: KD 1.461                                                                    That operating environment — a refer-
Agency quoted Information Minister                Ratings has affirmed Ahli Bank S.A.O.G’s           op its funding profile, improve liquidity            million).                                                                                       ence to political deadlock and slumping
Abdulaziz al-Khoja as saying on                   (ABO) Long-term Issuer Default Rating              and reduce concentrations.                              Commenting on the bank’s financial                                                           stock market — drew a rare public rebuke
Tuesday.                                          (IDR) at ‘BBB+’ with a Stable Outlook,                ABO’s VR is enhanced by its relatively                                                                                                            from NBK’s chief executive as the political
                                                  Short-term IDR at ‘F2’ and Viability               strong management, solid risk manage-                results, Fowzi Al Ateeqi,          GM                                                           paralysis cripples investor confidence and
   The report only gave a version of the
bank’s name in Arabic but it was identi-          Rating (VR) at ‘bb+’. A full list of rating        ment systems and practices ensuing                   Investments & Secretary to the Board                                                            economic development in the major oil
                                                  actions is at the end of this rating action        from being part of the AUB group. In                 and the bank’s official spokesman said           Fowzi Al-Ateeqi, GM Investments &
fied as ICBC by local media on                                                                                                                                                                                   Secretary to the Board.                  producer.
                                                  commentary.                                        Fitch’s opinion, ABO could also look for             “The bank continues a prudent policy                                                               Members of parliament again boycotted
Wednesday. A public relations company                ABO’s Support Rating and Support                support from its 35%-owner Ahli United
representing the bank in the Gulf said it         Rating Floor reflect the high probability of       Bank       BSC,        Bahrain      (AUB;            towards building up a strong provision           lowest cost/income ratios in Kuwait with       a session of the country’s assembly on
would be unable to confirm the report             support from the Omani authorities, if             ‘BBB+’/Stable), although this is currently           base and consolidating its balance               23.77 percent for 1H2012.                      Tuesday, foiling an attempt to swear in a
until ICBC had been officially contacted          needed, given the government’s strong              not factored into the ratings.                       sheet. Further progress is noted on the             “Asset quality indicators showed            new cabinet and making new elections —
by the Saudi Arabian Monetary Authority           supportive stance towards the domestic                Operating profit continued to rise in             bank’s review of processes for effi-             improvement with non-performing loans          Kuwait has had eight governments in just
(SAMA), the central bank.                         system.                                            2011 and H112 – a trend that should con-                                                              falling during the period ended 30th June      six years — more likely.
                                                     As the bank’s IDRs are at their Support         tinue over the medium term – driven by               ciencies and preparation to benefit              2012 to 7.02 percent (1H2011: 12.97 per-          Banks in Kuwait are also suffering the
                  Operate                         Rating Floor, the IDRs, the Support                healthy core earnings and solid cost con-            from any growth opportunities in the             cent) with provision coverage of 88 per-       fallout from the collapse in the country’s
   SAMA lists only 11 foreign banks on            Rating and Support Rating Floor would              trol. Performance is supported by net                future and to ensure superior customer           cent (1H2011: 54 percent)” added Al            investment sector, where many firms bor-
its website that are already licenced to          be sensitive to a change in Fitch’s per-           interest income (the main contributor to
                                                  ception of the willingness or ability of the       earnings), which benefitted from stronger            services”.                                       Ateeqi.                                        rowed cheaply in the mid-2000s to invest
operate in the kingdom.
   State-owned ICBC is the world’s largest        state of Oman to support ABO, if                   business volumes and broadly stable                                 Strategy                             Commercial Bank’s total assets at the       in local stocks and real estate projects.
                                                  required.                                          funding costs. Loan impairment charges,                 Al Ateeqi went on to explain that the         end of June 2012 reached KD 3.7 billion           However, the global financial crisis
bank by stock market capitalisation. It has          ABO’s VR takes into account its rising          although rising, remain low. ABO has one                                                              (12/2011: KD 3.7 billion) with sharehold-      meant loans could not be refinanced and
branches in Abu Dhabi and Qatar, as well          profitability and sound asset quality. This        of the lowest cost/income ratios in the              bank has set a balanced strategy aiming
                                                                                                                                                          to add further improvements to its oper-         ers equity of KD 537.8 million (12/2011:       asset values plummeted - the Kuwaiti stock
as a subsidiary in Dubai. It has also been        is offset by high concentrations on both           sector (30% in 2011), which it will                                                                   KD 530.5 million). The capital adequacy        market has dropped more than 60 percent
seeking a licence to operate in Kuwait; the       sides of the balance sheet, the domi-              endeavour to maintain.                               ating activities along with reducing non-        ratio (CAR) at June 2012 is 18.79 percent      since its June 2008 peak — forcing local
country’s state news agency KUNA                  nance of institutional customer deposits              Non-equity funding is mainly com-                 performing loans within the bank’s short
                                                  in the bank’s funding structure and pres-          prised of customer deposits (86% of non-                                                              (12/2011: 18.58 percent) which exceeds         banks to restructure debt and provision
reported earlier this year that its central                                                                                                               and long term business plans that will           the minimum 12 percent required by the         accordingly.
bank had given “initial approval” for             sure on liquidity caused by fast loan              equity funding at end-H112), the majority
                                                  growth.                                            of which are institutional. Accordingly,             focus on studying available growth               Central Bank of Kuwait. The bank contin-          Shares in CBK have fallen 7.6 percent
ICBC to set up a branch there.                       Erosion of capital ratios and further           depositor concentration (albeit falling) is          opportunities according to the current           ues to have a strong capital base with more    year-to-date.
   ICBC’s Middle East operations made a           pressure on liquidity could have a nega-           high: larger deposits are mainly from gov-           economic situations with a particular            than twice the international ratio required       Commercial Bank of Kuwait provides
2011 pre-tax profit of $32 million, more          tive impact on the VR. Upside potential            ernment and related entities and ABO’s               emphasis on core business activities that        by Basel II.                                   its corporate and retail customers with
than double the $15 million it recorded in        for the VR is limited given the high con-          pension fund shareholders, hence                     help the bank return back to high prof-             Commercial Bank of Kuwait took the          wide spectrum of banking products and
the previous year, the bank said in March.        centrations and limited franchise, but             regarded by the bank as stable.
                                                                                                                                                          itability levels.                                opportunity to thank the bank’s valued cus-    services through one of the largest full
Total assets jumped 146 percent to $3.06                                                                                                                    The bank continues to demonstrate its          tomers for their trust and confidence, the     service branch networks in Kuwait. For
billion.                                                                                                                                                  cost leadership with operational efficiency      Executive Management team and staff for        information on Commercial Bank of
   The bank has moved to benefit from             have a refining joint venture in the               while made headway in winning large                                                                   their hard work and loyalty and sharehold-
                                                                                                                                                          a competitive advantage for the bank                                                            Kuwait products or services please contact
China’s increased trade with Middle East          Chinese province of Fujian and plans for           engineering, procurement and construc-                                                                ers for their continued support and faith.
countries and a growing appetite for ren-         another in western Saudi Arabia. Saudi             tion contracts from Saudi Arabia in a                which continues to maintain one of the                                                          1-888-CBK or visit www.cbk.com.
minbi-denominated business. In addition           Basic Industries Corp has a world-scale            market once dominated by Western,
to Chinese imports of Saudi oil, the coun-        ethylene plant with Sinopec in China’s             Japanese and South Korean companies.
tries have set up a string of joint ventures      Tianjin, which the companies this year             China’s Sepco III Electric Power
in refining and petrochemicals.                   agreed to expand to produce polycarbon-            Construction Corp was awarded multi-
   Saudi Arabian Oil Co (Saudi Aramco)            ates.                                              billion dollar contracts to build two
and China Petrochemical Corp (Sinopec)               Chinese building firms have mean-               power plants in 2009 and 2010.

                                                  Total shareholders’                                   The total revenue from transactions
NIC earns                                            equity                 44,145,933 41,408,215    with related parties amount of KD 4,605
                                                     Total expenses from transactions with                             ❑       ❑        ❑
             Continued from Page 36               parties amounts to KD 447,731
                                                                                                        Al Salhia Real Estate Company
                                                                    ❑       ❑       ❑                reported that the Board of Directors met
parties amounts to KD 250,237
                                                     Kuwait Stock Exchange announced that            on Aug 8, 2012 and approved the interim
                  ❑       ❑       ❑               the Board of Directors of Dar Al Thuraya           financial statements for the H1 period end-
   Oual Fuel Marketing Company                    Real Estate Company (Thuraya) met on               ing June 30, 2012.
reported that the Board of Directors met          Aug 8, 2012, and adopted the interim                  For the three months ending June 30,
on Aug 8, 2012 and approved the interim           financial statements for the periods ending        2012, Salhia earned a profit of KD
financial statements for the H1 period end-       June 30, 2012, according to the following:         2,010,698, as compared to a profit of KD
ing June 30, 2012.                                   For the three months ending June 30,            1,697,759 for the same period ending
   For the three months ending June 30,           2012, Thuraya reported a profit of KD              2011.
2012, the company made a profit of KD             9,977 as compared to a loss of KD 8,501            Particulars                  June 30,    June 30,
1,006,152 as compared to a profit of KD           for the same period ending 2011.                   (6 months ending)               2012        2011
1,079,012 for the same period ending              Particulars                 June 30,   June 30,    Profit (KD)                 4,297,200   3,563,823
2011.                                             (6 months ending)              2012       2011     Earnings per share (fils)          8.7         8.3
Particulars                 June 30,   June 30,   Profit (KD)                    4,138     60,004    Total current assets       22,769,689 15,406,349
(6 months ending)              2012       2011    Earnings per share (fils)      0.028      0.409    Total assets              280,301,586 284,495,524
Profit (KD)                1,873,211  2,034,912   Total current assets       1,301,671  1,878,449    Total current liabilities 36,150,435 35,232,913
Earnings per share (fils)         5.5      6.25   Total assets              18,879,938 19,199,922    Total liabilities         154,206,101 155,389,676
Total current assets      19,518,161 17,182,950   Total current liabilities    323.024    311.484    Total shareholders’
Total assets              54,610,346 50,779,215   Total liabilities          1,194,919  1,436,671       equity                 123,576,521 128,440,680
Total current liabilities 10,262,721  9,196,438   Total shareholders’                                   Total expenses from transactions with
Total liabilities         10,464,413  9,371,000      equity                 15,886,313 15,858,341    parties amounts to KD 420,989

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