KIPCO profit soars 182 per cent to KD 18.2 million (USD 61.8 Million) in 2003

The board of directors has recommended a cash dividend of 15 per cent of the share face value, or 15 fils (5.1 cents) per share.

"2003 proved to be a banner year for KIPCO, and one in which careful strategies put in place in recent years began to bear fruit," said KIPCO managing director and chief executive officer Faisal Al Ayyar.

"These strategies, with twin goals of building sustainable profits and growing the real value of the Group, have resulted in substantial increases in profits and underlying value. It is gratifying that this performance has been recognised by investors with a sharp increase in the price of KIPCO shares, and we are extremely optimistic that KIPCO is poised to continue from strength to strength," he said.

Total revenues for 2003 increased by 70 per cent to KD 68.1 million (US$ 231.1 million) from KD 40.1 million (US$ 136.2 million) in 2002. Total assets were KD 685 million (US$ 2.3 billion) compared to KD 579.1 million (US$ 1.96 billion), a rise of 18.3 per cent, and shareholders' equity grew by 14.6 per cent to KD 160.5 million US$ 544.6 million) from KD 140 million (US$ 475.1 million) in 2002.

During the year, the market value of KIPCO's investments in core listed subsidiaries and associated companies rose by KD 141.5 million (US$ 480.2 million), an increase of 53 per cent from KD 266.9 million (US$ 905.8 million) in 2002, to KD 408.5 million (US$ 1.4 billion). This increase in market value translates into KD 209.7 million (US$ 711.6 million) of unrecognised appreciation in KIPCO's book value.

KIPCO Group companies previously announcing 2003 results have also demonstrated strong performances, with highlights including United Real Estate's (URC) record net profit of KD 13.1 million (US$ 44.4 million), a rise of 334 per cent; United Gulf Bank (UGB) also posting record earnings of KD 10.7 million (US$ 36.2 million); Gulf Insurance Company (GIC) announcing a 9.5 per cent growth in profit to KD 5.5 million (US$ 18.6 million); and Burgan Bank's net profit of KD 20.3 million (US$ 68.8 million), an increase of 59 per cent.

Other KIPCO Group listed companies due to announce 2003 results are Wataniya Telecom, KIPCO Asset Management Company (KAMCO), United Industries, and United Fisheries of Kuwait (UFK). The complete KIPCO portfolio of more than 60 subsidiary and affiliate companies includes high-profile industry-leading organisations such as Showtime, the hugely-popular satellite pay-TV service, a joint venture with Viacom International

KIPCO, with assets of US$ 10 billion under management or control, is one of the leading diversified holding companies in the Middle East and North Africa, and a major regional force in financial services and media & technology with further interests in real estate and industry. KIPCO is the largest private company in Kuwait and employs more than 10,000 people internationally. Its shares are the most actively traded on the Kuwait Stock Exchange.