Changes in currency values cause
KUWAIT CITY, Dec 29: In response to a parliamentary question, Kuwait Petroleum Corporation (KPC) said the profit of its investment portfolio declined by 38 percent in fiscal 2018/2019 compared to the previous year, reports Al-Qabas daily.
KPC revealed the amount of withdrawal is $1.6 billion – from $19.2 billion to $17.6 billion, indicating the net profit decreased from $1.44 billion in fiscal 2017/2018 to $391 million in fiscal 2018/2019. It also confirmed the reply to the comment of the State Audit Bureau (SAB) in this regard, pointing out that the investment portfolio was established in 1997 with the aim of benefiting from the available cash at the time as part of enhancing total revenues and using them in the best way until the launching of major projects.
It added the investment profits were used to finance projects; hence, the decline of investment in the portfolio by the end of fiscal 2018/2019. It pointed out that the commitment to refund profits of the previous years to the State contributed to reducing cash and increasing expenses.
It also attributed decline of revenues to the reconstruction of the investment portfolio in the previous year – 2017/2018 – which increased the profits by $806 million, clarifying that if such amount was deducted, the decline would have been $243 million only. It went on to say that part of the decline is due to changes in the value of currencies against the US dollar