KIPCO 2004 half year profit surges 63 per cent to KD 13.1 million

2004 first half revenues were KD 36.6 million (US$ 124.2 million), an increase of 29 per cent from KD 28.4 million (US$ 96.4 million) in the first half of 2003. Second quarter net profit in 2004 was up 14 per cent to KD 6.4 million (US$ 21.7 million, or 6.35 fils (2 cents) per share, compared to KD 5.6 million (US$ 19 million), or 5.54 fils (1.9 cents) in the 2003 second quarter.

KIPCO has now edged ahead of its target to reach net profit of KD 25 million (US$ 85 million) and a cash dividend of 18 fils (6.1 cents) per share in the full year 2004, as predicted by managing director and chief executive officer Faisal Al Ayyar during the landmark KIPCO Financial Forum at Kuwait Stock Exchange (KSE) in March. KIPCO's net profit in 2003, its 12th year of unbroken profitability, was KD 18 million (US$ 61 million).

"Our growth momentum has gained real traction, and we continue to meet and exceed expectations," said Mr. Al Ayyar. "These results are further proof that our established strategies to build sustainable profit and grow the real value of the Group have us on course to reach our financial targets not only for 2004, but for years to come," he said.

KIPCO, with assets of US$ 10 billion under management or control and a portfolio of some 70 companies, has 10,000 employees throughout its operations and its shares are the most actively traded on the KSE.

KIPCO's core operating companies are United Gulf Bank (UGB), its investment banking subsidiary; Gulf Insurance Company (GIC), a regional leader in commercial and personal insurance; Burgan Bank, Kuwait's leading technology-driven commercial bank; Wataniya Telecom, the dynamic and fast-growing regional mobile telephone services provider; and Showtime, the hugely-popular digital pay-TV service spanning the Middle East and North Africa.