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Kuwait signs two contracts to export oil, fuel to Ethiopia

KUWAIT: Kuwait Petroleum Corporation (KPC) signed two contracts to export consignments of diesel oil and aircraft fuel to Ethiopia. KPC’s International Marketing Sector, said in a statement on Monday, that the three-year contracts will provide most of Ethiopia’s need of aircraft fuel and nearly third of the country’s requirement of diesel oil. Increasing the supplies of oil and fuel are subject to change in the future, the statement pointed out. The contract-signing ceremony took place in Kuwait with the attendance of the International Marketing sector Managing Director Nasser Al-Mudhaf and his deputy Yousef Al-Qabandi. The Ethiopian side, however, included Chief Executive Officer (CEO) of the Ethiopian Petroleum Enterprise, number of officials and the Ethiopian Ambassador to Kuwait Halima Mohammad.

BUSINESS

tuesdAY, april 17, 2012

m ar ket watc h KUWAIT

DUBAI

QATAR

OMAN

ABU DHABI

0.34% 6196

1.6% 1649

0.1% 8727

0.9% 5949

0.5% 2500

OIL MARKETS BAHRAIN

EGYPT

0.1% 1139

NO CHANGE

SAUDI

1.0% 7278

US Crude $102.89 $0.06 London Brent $121.83 $0.11 Kuwait Crude $116.32 $0.00 Information Courtesy: KAMCO

NBK reports net profit of KD 81 million for Q1 2012 CAPITALS: National Bank of Kuwait (NBK), the largest Kuwaiti bank and the highest-rated in the Middle East, reported net profits of 292 million US dollars (81.0 million Kuwaiti dinars) for the first quarter (Q1) of 2012 compared with $291 million (KD 80.8 million) for the same period in 2011. First quarter 2012 net profits came 5.5 percent ahead of the fourth quarter of 2011. This was stated in a press release on Monday. As of end of March 2012, NBK Group’s total assets reached $ 51.8 billion (KD 14.4 billion) up 3.5 percent compared to March 2011, while total shareholders’ equity increased by 5.5 percent year-on-year to $8.1 billion (KD 2.3 billion). Profitability indicators remained among the highest in the region with return on assets (ROA) of 2.33 percent and return on equity (ROE) of 15.0 percent. NBK’s net operating income continued to improve in Q1 2012 reaching $481.4 million (KD 133.7 million). Ibrahim Dabdoub, NBK’s Group Chief Executive Officer (CEO), said, “NBK’s strong financial position underpins the bank’s ability to generate solid performance despite the challenging operating environment”. “Our focus on core banking operations in and outside Kuwait remained a differentiator as our regional operations delivered resilient performance and contributed to the strong profitability achieved in the first quarter. This along with the strengthening of Boubyan Bank’s (47.3 percent owned by NBK) market position and profitability continued to support NBK’s efforts to better diversify its income sources.” Dabdoub added. Dabdoub

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CURRENCIES US Dollar

British Pound

Saudi Riyal

Qatari Riyal

Indian Rupee

Euro

Japanese Yen

UAE Dirham

Bahraini Dinar

Philippine Peso

Buy 0.2783 Sell 0.2784 Buy 0.3639 Sell 0.3641

Buy 0.441 Sell 0.4413

Buy 0.003437 Sell 0.003442

Buy 0.0742 Sell 0.0742

Buy 0.07577 Sell 0.07582

Buy 0.07646 Sell 0.07642 Buy 0.7382 Sell 0.7385

Buy 0.005402 Sell 0.005398 Buy 0.006542 Sell 0.006527

Prices in Kuwaiti fils as of April 15, 2012 Courtesy: KAMCO

Dubai’s Nakheel posts 33% rise in 2011 profit DUBAI: Indebted Dubai state-owned developer Nakheel Properties reported a 33-percent rise in 2011 profit on Monday and said that it anticipated an improvement in the struggling real estate sector. Nakheel reported a net profit of 1.3 billion UAE dirhams (353.93 million US dollars) last year, up from one billion dirhams in 2010. Revenues rose to 4.1 billion dirhams, a company statement said. Total liabilities fell to 41 billion dirhams last year from 61 billion dirhams in 2010. “The market is picking up so there was no need for impairments (in 2011),” Chairman Ali Rashid Lootah told reporters. Assets at the end of 2011 totalled 24 billion dirhams, up from eight billion in the prior-year period. Lootah attributed this to a restructuring, improved market conditions and a revised business plan.

During the year, Nakheel delivered 820 units including land parcels. “Revenues were mainly driven by the handover of properties in several of the Group’s developments, mainly Palm Jumeirah, Jumeirah Village, International city, the World, and Al Furjann,” the company statement said. Nakheel, which overstretched itself late last decade with ambitious projects such as a man-made islands in the shape of palm trees, was brought under direct government control last August as part of the restructuring of its parent Dubai World Although there are some signs that Nakheel’s business is reviving - it launched a residential project on its Palm Jumeirah site this year, the first to be publicized since the real estate market collapsed - it still faces difficult business conditions and a multi-year process of paying down debt. -Reuters

Bourse drops 21.3 points at end of trading Most KSE-listed companies forecast to post limited profits, says experts

Ibrahim Dabdoub, NBK’s Group CEO

Mohammed Al-Bahar, NBK’s Chairman

also highlighted that NBK’s fundamental strengths, along with its clear strategic vision, robust risk management practices and sustainable financial performance helped the bank maintain its strong position through different crises and continued to earn it international recognition. In 2011, NBK maintained its top ranking among Middle Eastern banks and was named the ‘Best Bank in the Middle East’ by Euromoney, The Banker and Global Finance magazines. Additionally, NBK moved 14 positions to rank 33 in Global Finance’s list of the 50 safest banks in the world. NBK continues to enjoy the widest banking presence in Kuwait with 67 branches, which together with its growing international presence totals 176 branches

worldwide. NBK’s international presence spans many of the world’s leading financial centers including London, Paris, Geneva, New York and Singapore, as well as China (Shanghai). Meanwhile, regional coverage extends to Lebanon, Jordan, Iraq, Egypt, Bahrain, Qatar, Saudi Arabia, the United Arab Emirates (UAE), and Turkey. NBK continues to enjoy collectively the highest ratings among all banks in the Middle East from the three international rating agencies Moody’s, Fitch Ratings and Standard and Poor’s. The Bank’s ratings are supported by its high capitalization, prudent lending policies, and its disciplined approach to risk management, in addition to its highly recognized and very stable management team.

KUWAIT: Kuwait Stock Exchange (KSE) closed Monday in the red zone. The price index read 6,196 points at a drop of 21.3 points, while the weighted index came to 411.63 points, a drop of 1.43 points. Trades came to 3,832 transactions, worth 29.2 million Kuwaiti dinars, and volume reached 328.7 million shares. Meanwhile, according to economic experts, most companies listed in Kuwait Stock Exchange (KSE) are forecast to post modest profits for operations of the first quarter of 2012. The figures, interviewed by Kuwait News Agency (KUNA), attributed the prediction to lack of new market incentives and suspension of some development schemes; factors that boosted bearish trend of indices of the KSE listed sectors. Shedding further light on factors and circumstances that contributed to the downward trend, the economic figures noted that delay of some banks and major investment companies in revealing their regular financial statements came in favor of speculators’ activities of influencing the market. Mohammed

Al-Hajeri said the companies, judging by payment of cash dividends in the third and fourth quarters of 2011, did not post good outcomes, as anticipated, as a result of restructuring and altering status of some of the firms. Elaborating, he forecast identical performance of the companies in the first quarter of 2012, due to lack of enterprises and shortage of liquidity. Moreover, major banks are due to disclose their financial reports in the first quarter of 2012, and that would constitute major boost to the other sectors. The economic expert, Naif Al-Enezi, concurs, forecasting limited earnings by the listed companies, noting that they have been trying, in vain, to make some substantial profits, since start of the year. Some of these companies lack credibility and transparency, thus they may be suspended following expiry of the legal grace period, unless they alter their status, otherwise they are likely to join the list of the suspended ones, thus aggravating the existing problem in the market, particularly in the sector of investment companies, Al-Enezi added.

April 17, 2012  

Al Watan Daily - Kuwait

April 17, 2012  

Al Watan Daily - Kuwait

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