Total Assets Reach KD 219.2 Mln During Year
KUWAIT CITY, May 15
Noor Financial Investment Company held its annual general assembly meeting for the financial year ended 31 December 2012 on May 14, 2013. Abdullatif A. Al-Asfour, Noor's Chairman and Managing Director, declared that 2012 was a turning point for Noor, as a result of executing a clear plan and governance framework developed in line with the highest international standards that included restructuring of all administrative, financial, and investment units. In 2012, Noor successfully finalized the restructuring of all of its bank debt to lower cost facilities. Al-Asfour also noted that Noor has succeeded through the year 2012 to sell a number of assets which led to achieving positive results during the year and for the first year since the beginning of the global financial crisis in 2008.
Al-Asfour added that Noor achieved a net profit of KD 4.5 million for the year 2012, compared to a net loss of KD 15.2 million for the year 2011, that had contributed positively to the book value per share, which had increased by 18% and stood at 111 fils per share as at 31 December 2012, compared to 94 fils per share for the previous year (post capital reduction). Due to scheduled repayment of debt and lowering the borrowing cost, the Company had recorded a 16% decrease in its finance costs compared to 2011. The comprehensive profit for the year 2012 was KD 6.8 million up from a loss of KD 23.6 million last year. Regarding Noor's balance sheet, Al-Asfour stated that it now stands at KD 219.2 million in terms of total assets down from KD 234.1 million in 2011, and total shareholders' equity of KD 40.8 million is up from KD 34.3 million in 2011.
Al-Asfour continued: as a result of the Company's restructure of its various units, including updating its policies and procedures in accordance with global best practices and new laws and regulations, the Company is focused and poised to succeed in three main business lines, Marketable Securities, Alternative Investments and Real Estate. Under this new phase and current economic environment, it was necessary to adjust our vision and develop plans to adapt to current changes and build a strong entity. In spite of the rise of Kuwait Stock Exchange indices from end of last December and the increases since the beginning of the current year, Al-Asfour said that the vision adopted by the Board of Directors to reduce market risk is what will make Noor withstand the current situation. The Company will continue to seize opportunities while maintaining a cautious approach by adopting balanced principles between risk and return.
Al-Asfour also stated that Noor's largest investment outside of Kuwait, Meezan Bank, where Noor owns a 49.1% equity stake has continued its positive progress in terms of profit, growth and contribution to Noor's bottom line. Meezan Bank has a 310 branch network covering 90 cities in Pakistan, which enabled it to achieve 35% growth in total deposits in the year 2012. Continuously, Meezan Bank has achieved growth in its net profit from 2008 until 2012, with a CAGR in net profit of 54%. Additionally, it continued to make a cash and stock dividend distribution for a second year. Meezan Bank has been recognized with various awards for its business activities as the best Islamic bank in Pakistan, as well as for its social responsibility contributions.
In the hospitality sector, Noor has completed the major renovation works of Amman Airport Hotel in 2012 and witnessed growth in operations leading to good results during the year. Additionally, Noor has acquired a stake in a hotel in Saudi Arabia. Noor continued strengthening strategic relationships to develop new businesses in Kuwait and the region in the energy sector. Al-Asfour said that Noor is liquidating non-strategic subsidiaries and fostering active subsidiaries and associates, such as Noor Telecommunications Company, a 51% subsidiary of Noor in the telecom and technology sector, where the Company had actively participated in its financial restructuring. Noortel posted positive results for the year 2012 and recently concluded an attractive acquisition in the information and communications technology services space.
Also, Noor Kuwait LBO Fund achieved appreciation of 2.8 times its original investment in AutoMAK through a capital increase with the participation of InvestCorp, Bahrain. Through its focus on expanding investment in real estate in Kuwait, Al-Asfour mentioned that Noor continues to give special attention to its subsidiary, Noor Salhiya Real Estate Company, which provides attractive yields to the Company and is considered to be Noor's Real Estate arm since the activation of its real estate business. Its portfolio includes Noor Salhiya building, which is one of the most significant properties located in elite area of Salhiya, which is fully rented and has favorable returns.
At the international level, Al-Asfour added that development has started on a residential project in Egypt in the prime Cairo suburb of 6th October. Noor is also developing strategic partnerships in the real estate sector to create opportunities in the GCC and abroad.
With respect to Noor goals for 2013, Al-Asfour ensured that Board of Directors and Executive Management will continue the implementation of the new strategic plan focusing on expanding its yielding real estate and private equity investments, with a focus on the hospitality, oil & gas and financial services sectors and expects more profitable exits. Al-Asfour added that in the current environment, the Company is focusing more on managing risks while selecting the most promising investment opportunities in order to increase shareholders equity and reduce the risk of losses. Al-Asfour concluded: Noor is working on developing feasibility studies with other investors in strategic alliances in the Company's targeted sectors, especially as Noor possesses experienced and high caliber financial, technical and administrative teams that will enable the implementation of the plan set for the coming years.
© Arab Times 2013
