KUWAIT CITY, Feb 22: KIPCO - the Kuwait Projects Company - has announced net profit of KD 46.3 million ($161.4 million) for the year ended Dec 31, 2009, an increase of 92.1 per cent on the KD 24.1 million ($87.3 million) profit reported in 2008. KIPCO’s earnings per share increased by 100 per cent in 2009 to 43.65 fils ($15.2 cents) per share from 21.82 fils ($7.9 cents) per share in 2008. KIPCO’s 2009 results represent the company’s eighteenth consecutive year of profitability. KIPCO’s Board of Directors is recommending a cash dividend of 25 per cent (25 fils per share) and a 5 per cent stock dividend for 2009, subject to approval by the company’s General Assembly and regulatory authorities. This compares to the 40 percent (40 fils per share) cash dividend made in 2008.

KIPCO said its 2009 results were achieved while applying conservative accounting practices across Group companies. KIPCO’s consolidated accounts include over KD 92 million ($320.8 million) in provisions taken against assets. The results reflect KIPCO’s strict financial discipline and its sound financial position in difficult market conditions.
KIPCO’s total revenues for 2009 increased by 6.8 per cent to KD 470.3 million ($1.64 billion) from KD 440.3 million ($1.6 billion) in 2008. The company also reported an increase of 64.3 per cent in operational profit to KD 138.3 million ($482.2 million) for 2009 — from KD 84.2 million ($305.1 million) in 2008.

KIPCO posted a 2.7 per cent increase in total consolidated assets for 2009, up to KD 5.34 billion ($18.6 billion) from KD 5.2 billion ($18.8 billion) in 2008.
KIPCO’s fourth quarter profit (for the three months ended Dec 31, 2009) was KD 0.7 million ($2.44 million) compared to a loss of KD 59.4 million ($215.22 million) for the same period in 2008.
KIPCO said it had ended 2009 with over KD 314 million ($1.1 billion) in liquidity and low leverage at parent level consisting mainly of medium term debt. The company remains the highest rated corporate in the MENA region by Standard & Poor’s and Moody’s, despite many rating downgrades in Kuwait and the region.
Commenting on the 2009 results, KIPCO’s Vice Chairman, Mr Faisal Al Ayyar, said: “Back in March last year, at our annual Shafafiyah Investors Forum, we said that if market conditions did not get any worse, we expected to double our 2008 profits. We came very close to achieving that target, despite the continued challenges faced by global and local economies during 2009. These conditions have affected the performance of our operating companies, but overall, we are pleased with the results they have delivered and the profit we have been able to report.”

Downturn
“2009 was our eighteenth consecutive year of profitability. In the context of the global downturn, the difficulties in our local markets and the continued need to make provisions, this is a remarkable track record. Although there are signs of a gradually improving economic outlook in 2010, we will continue to be conservative, vigilant and opportunistic as we strive to maintain our position as the region’s premier holding company.”
“The dividend distribution we are recommending reflects the balance we make between shareholder expectations, preserving the company’s financial health and our ability to capture the investment opportunities we anticipate will occur during the next twelve months,” he added.