27th Annual General Assembly and 1st Board of Directors Meetings for the year 2003 in Cairo

The Annual General Assembly of Arab Petroleum Investments Corporation (APICORP) – an affiliate of the Organisation of Arab Petroleum Exporting Countries (OAPEC) held its 27th meeting on Saturday 3rd May, in Cairo, Arab Republic of Egypt.

The shareholders General Assembly approved the 27th annual report and the audited financial statements for the year 2002, which disclosed that the corporation’s operations during 2002 generated a net income of US$ 29.8 million compared to US$ 42.8 million in 2001. Total assets rose to US$ 1,872 million, compared to US$ 1,584 million in 2001.

The shareholders General Assembly also endorsed the Board of Directors recommendation of a US$ 20 million dividend for 2002.

To strengthen the corporation’s capital base and financial adequacy, the shareholders General Assembly approved in their 6th extra-ordinary meeting for 2003, the Board of Directors recommendation raising the corporation’s paid-up capital from US$ 460 million to US$ 550 million by the capitalisation of the retained earnings.

In spite of the economic and political climate prevalent over the region, APICORP has continued to support the hydrocarbon industries in the Arab region, maintaining the leading role it has been playing by participating in the financing transactions for the oil and gas sector. That was achieved through its significant participation and the major roles it assumed in the arrangement of these financings, resulting in an increase in the total loan balances from US$863 million to US$ 1,064 million in 2002. APICORP participated in loans of US$ 5.2 billion during the year with a final take of US$ 436 million, compared to US$ 4.3 billion in 2001 and a final take of US$ 428 million.

APICORP has continued to support Arab oil exports by participating during 2002 in trade finance transaction of over US$ 679 and a final take of about US$ 120 million.

The Board of Directors also held its first meeting for 2003 on Saturday 3rd May. The Board reviewed the corporation’s investment and financing activities for the first four months of 2003. APICORP has participated in project and trade finance transactions totaling US$ 2 billion so far in 2003. These facilities were arranged for oil and gas related projects in member states.

The Board of Directors thanked the member states for their continued support to the corporation, particularly the government of the Custodian of the Two Holy Mosques, the host country of APICORP’s head office.

At the end of the session, the Chairman and members of the Board of Directors expressed their appreciation to the government of the Arab Republic of Egypt and the Egyptian public for the cordial reception and generous hospitality extended to them and to the members of the shareholders General Assembly during their stay in Cairo.