Our long-term strategy of portfolio diversification pays off: Al-Ayyar
KUWAIT: KIPCO - the Kuwait Projects Company (Holding) - has announced a net profit of KD 28.3 million ($93.3 million) for the year ended 31 December 2018, an increase of 20 per cent on the KD 23.6 million ($77.8 million) reported in 2017.
Earnings per share was up 30 per cent from 11.5 fils ($3.8 cents) per share reported in 2017 to 15 fils ($4.9 cents) per share at the end of 2018.
KIPCO's Board of Directors is recommending a cash dividend of 12 per cent (12 fils per share) subject to approval by the company's General Assembly and regulatory authorities. Total revenue from continuing operations in 2018 increased by 13 per cent to KD 774 million ($2.55 billion) compared to the KD 686 million ($2.26 billion) reported in 2017.
KIPCO's consolidated assets stood at KD 10.4 billion ($34 billion), compared to KD 10.3 billion ($34 billion) reported at year-end 2017.
Faisal Al-Ayyar, KIPCO's Vice Chairman (Executive), said that the business environment continued to be difficult in 2018, but the company was able to perform well despite these circumstances:
"The performance we achieved in 2018 reflects our sound operations and long-term strategy of portfolio diversification. We predicted earlier that we will face challenges that are not structural, but rather the result of external elements such as competition, weakened operating environment, as well as regional economic and political struggles. Despite all this, the performance of our core businesses has exceeded our expectations thanks to the internal discipline we adhere to and our focus on streamlining our operations."
He added: "During 2018, our banking operations reported record profits and strong growth in revenue and net income. Meanwhile, our insurance network successfully increased its profit, gross written premiums and shareholder equity. While we look to 2019 with caution, we believe that our prudent internal practices and strategy of diversified investments will guide us towards a more positive outcome this year."