KIPCO Financial Outlook Forum opens at Kuwait Stock Exchange

The opening session of the Forum was the first in a series of three presentations involving KIPCO and its directly-held listed subsidiaries and associates.

Organised by KIPCO Asset Management Company (KAMCO) the Forum is aimed at presenting financial details and outlooks of these companies to enhance the principle of financial transparency for investors. The Forum, the first large-scale event of its kind in Kuwait, also features free and open dialogue between company management and investors. The presentations on the first day of the Forum were attended by an audience of investors, observers, financial analysts and representatives of the local and international media.

Gulf Insurance Company opened the first session with a presentation by Khaled Al Hassan, managing director and chief executive officer, covering an overview of the company, a summary of its main activities and a review of its 2003 results, together with achievements made and challenges met. The presentation also covered GIC's outlook for 2004 with projected business results for the year and the major initiatives GIC intends to launch to enhance its leading position in local and regional insurance markets.

In his presentation, Al Hassan highlighted the exceptional operating results of GIC during 2003. As well as expanding its domestic branch network to be the largest in the local market, GIC enhanced its regional presence through its subsidiaries in Saudi Arabia (Saudi Pearl Insurance Company Ltd) and in Lebanon (Fajr Al Gulf Insurance and Reinsurance Company). At the forefront of the major highlights of 2003 was GIC's net profit, with a growth of 9.52 per cent to KD 5.5 million, compared to KD 5 million for 2002, and with earnings per share rising to 50.11 fils from 45.7 fils for 2002.

Shareholders' equity grew by 31.3 per cent to KD 53.36 million, while total assets grew by 19.9 per cent to KD 108.1 million.

Al Hassan's presentation covered a forecast of projected business results in 2004, including projected total premiums in 2004 of KD 34 million, an increase of 9.32 per cent from the KD 31.1 achieved in 2003; and 2004 net profit of KD 6 million, a rise of 9.1 per cent over KD 5.5 million in 2003.

The Wataniya Telecom presentation by Ahmed Haleem, financial controller, reviewed the evolution and growth of Wataniya over the past four years since its inception, attracting a market share of 50 per cent of the mobile telecommunications market in Kuwait. Haleem also highlighted Wataniya's successes across the Middle East and North Africa region. Having consolidated its leading position in Kuwait market, Wataniya moved forward to expand in other regional markets. Acquiring a 50 per cent share in Tunisiana in October 2002, the Company won a license to operate a mobile telecommunications network in northern Iraq in October 2003, then won the license for operating a third network in Algeria, in December 2003.

Reviewing Wataniya's financial achievements during 2003, Haleem focused on major financial highlights of the year. Total revenues increased to KD 125.6 million, up by 48 per cent compared to 2002, while net profit grew by 61 per cent to KD 33.5 million, with earnings per share of 93.4 fils. Shareholders' equity also increased to KD 94 million, and return on shareholders equity also rose to 43 per cent compared to 41.7 per cent for 2002. At the same time, the subscribers base in Kuwait grew by 171,000 subscribers during 2003 to reach around 800,000 subscribers at the year-end.

Concluding his presentation, Haleem gave a briefing on the financial outlook for Wataniya during 2004, with a 48 per cent rise in total subscribers from 1,063,000 in 2003 to 1,581,000; and a 37 per cent increase in net profit to KD 46 million from KD 33 million in 2003.

The second session of the Forum will be held on Monday March 22, 2004, with presentations from Burgan Bank and United Gulf Bank, and the final session on Monday March 29 will showcase the KIPCO Group.