‘Monitoring developments brought on by the COVID-19 pandemic’ says company’s Vice Chairman

 KIPCO – the Kuwait Projects Company (Holding) – has announced a net profit of KD 30 million (US$ 99 million) for the year ended 31 December 2019, an increase of 6 per cent on the KD 28.3 million (US$ 93.4 million) reported in 2018.

Earnings per share for 2019 came to 10.1 fils (US$ 3.3 cents), compared to 14.8 fils (US$ 4.9 cents) per share reported at the end of 2018. This is owed mainly to the company’s capital increase, as well as the one time increase in interest and other payments on perpetual capital securities held by a Group bank.

KIPCO’s Board of Directors is recommending a cash dividend of 10 per cent (10 fils per share) subject to approval by the company’s General Assembly and regulatory authorities.

Total revenue from continuing operations in 2019 came to KD 766 million (US$ 2.53 billion) compared to the KD 774million (US$ 2.55 billion) reported in 2018.

As a result of changes in KIPCO’s ownership of OSN over 2019 and Q1 2020, and in accordance with IFRS requirements, the pay-TV company has become a subsidiary of the Group. The details and impact are available in 2019 financial statements.

KIPCO’s consolidated assets stood at KD 10.3 billion (US$ 34 billion), compared to KD 10.4 billion (US$ 34 billion) reported at year-end 2018.

Mr Faisal Al Ayyar, KIPCO’s Vice Chairman (Executive), said that 2019 was a year of relative growth because of the rise in local public spending and the stability of oil prices:

“Our 2019 results reflect the positive performance our core companies achieved during the year, despite the geopolitical tension and economic struggles that our region is facing. This performance has exceeded our expectations in some areas, which is evident in the results that our banking and insurance sectors achieved.”

He added:

“In 2019, our banking operations reported positive growth in revenue and profits, while our insurance activities increased in profit and gross written premiums. We remain cautious about 2020, as we closely monitor the developments brought on by the COVID-19 pandemic. Our businesses are carefully evaluating the situation and taking measures to minimize its impact, while putting in place courses of action in order to ensure readiness once the pandemic has subsided.”