Company's Operational Revenues Grow Significantly In 2012

KUWAIT CITY, March 31

KIPCO Asset Management Company - KAMCO, announces its financial results for the year ending on Dec 31, 2012.KAMCO posted a Net Loss of KD 11.6 million (Earnings per Share of -48.9fils); compared to a Net Loss of KD 6.0 million in 2011 (Earnings per Share of -25.8fils). The losses incurred in 2012 are primarily attributable to the financial restructuring of KAMCO's balance sheet. The restructuring resulted in a reduction of assets by KD 70 million to KD 77 million in 2012 from KD 147 million in 2011. This was achieved through distributions and investment exits with debtfalling by KD 22 million to KD 40 million at December 2012 from KD 62 million at December 2011. The year saw KAMCO optimizing its capital structure and focus on its core activities of asset management and advisory services.

Significant 
Operational Revenues (excluding the revenues/losses related to Available for Sale Assets, Associates and Subsidiaries) grew significantly in 2012, resulting inOperational Profits in 2012 as against Operational Losses in 2011 -- a significant improvement, considering the stale capital market conditions that faced the financial & investments sector. It is also worthy to note that total Assets Under Management (AUM) grew to KD 2.41billion (USD 8.4 billion) in 2012, compared to KD 2.17 billion ($7.6 billion) in 2011, posting a growth of 11%.

On this occasion Faisal M. Sarkhou, Acting CEO at KAMCO, said, "Despite the restructuring based losses we incurred for 2012, our operating performance growth for this year was very positive and we expect it to continue in 2013. Our operating revenues increased significantly as we participated actively in key capital markets transactions. During this year KAMCO raised over KD200 million in three bond issuances for clients, one of which was the largest corporate bond in Kuwait's history with the longest tenure seen.  KAMCO also advised on a number of restructuring and advisory transactions, including one of the largest successful education sector transactions in Kuwait and the GCC. For 2013, we aim to continue focusing on our core activities and to launch a number of new products and services to our clients as the Kuwaiti economy begins to rebound."

Sarkhou continued, "A new chapter is being written for KAMCO, which will establish us as a market leader in asset management and advisory services in Kuwait and the region in the near future." Established in 1998 with the mission to become a local and regional player, KAMCO is one of the leading, Kuwait basedinvestment company based in Kuwait. A subsidiary of United Gulf Bank (UGB) - the investment banking subsidiary of Kuwait Projects (Holding) Company (KIPCO) - KAMCO was listed on the Kuwait Stock Exchange (KSE) in 2003.

Over many years of conducting business in Kuwait's dynamic investment industry, KAMCO has established a robust reputation for performance and solidity, characterized by its prudent, conservative investment philosophy which has consistently commanded the goodwill of a wide patron-base. KAMCO's main activities are Investments and Asset Management.  Its Investments Division specializes in providing investments, financial and advisory services, supported by investment research which tracks the latest directions and trends across regional and local economies as well as equity markets. The Asset Management Division concentrates on providing customized portfolio management, access to IPOs, and local and international fund management in addition to maximizing returns, mitigating risks, and maintaining capital appreciation for individual and institutional clients.

© Arab Times 2013