Firms Ready To Maximize Opportunities, Says Group's Vice-Chairman

KUWAIT CITY, March 31

During it's annual Transparency Investors Forum, KIPCO announced on Sunday afternoon that it expected its core companies to achieve great increases in revenue. "We enter 2013 with a portfolio of solid operational assets," stated KIPCO Vice Chairman Faisal Al Ayyar. "We believe most of the companies within the KIPCO group will continue -- and indeed accelerate -- the growth they have achieved over the last two years. "As a result, we expect to see double digit revenue growth from all out core companies in 2013. We also sense that 2013 could be a turning point in the outlook for regional and local economies and our companies are ready to maximize the opportunities from this potential improvement in their respective markets," he continued.

Further, the forum saw KIPCO's shareholders approve a cash dividend of 20%, as well as a stock dividend of 5%. Additionally, they authorized the Board of Directors to buy no more than 10% of the company's shares, and to sell them in accordance with the law. Moreover, the meeting saw the amendment of Article 6 of the Company's Memorandum of Association and Article 5 of its Articles of Association to increase capital from KD 133,657,388 to KD 140,340,257 through the distribution of a 5% shareholder bonus.

As part of its review of the last 12 months, KIPCO said 2012 was its twenty-first consecutive year of profitability and that it had met its 2012 objectives by continuing its regional expansion, repaying debt and reducing costs. The company also highlighted key performances of Group companies during 2012.  KIPCO said that considering market circumstances, all its companies were performing well and that the prospects for an increase in revenues over the next twelve months looked very promising.

KIPCO expects Burgan Bank Group and OSN to increase their revenues by 25% or more during the year while Gulf Insurance Group -- the MENA region's leading insurance group -- is likely to increase its premiums written by 10% or more in 2013. The company also said its food manufacturing and real estate businesses were expecting to see revenue growth of 15% and 10% respectively during the next twelve months.

Speaking at the Forum, KIPCO's Vice Chairman, Faisal Al Ayyar, said: "At last year's Investor's Forum, we set ourselves three key objectives: continue regional expansion, repay debt and reduce costs. Just like we have done each year since we started our Shafafiyah event, we have delivered the promises we made. In 2012, we expanded our geographical presence through acquisitions in the insurance markets of Iraq and the UAE and by buying Eurobank Tekfen in Turkey. During the year, United Gulf Bank, UIC and KAMCO also repaid a total of KD 120 million of debt and cut their operating costs. This demonstrates our commitment to shareholders and our ability to drive our businesses in the right direction."

© Arab Times 2013