KIPCO announces record 79 per cent increase in net profits for first quarter

Total revenues for the first three months of 2006 also increased by 57% compared to the first quarter of 2005, to KD 37.9 million (US$ 129.8 million) from KD 24.2 million (US$ 82.9 million).

The increase in profits was due mainly to continued solid performances from KIPCO's core operating companies - including United Gulf Bank which saw its best ever first quarter profits for 2006. In addition to these strong performances, a subsidiary of KIPCO Group also sold a non-core investment which added to the results.

Mr Faisal Al Ayyar, KIPCO's Managing Director and Chief Executive Officer said:

"Our first quarter results are truly excellent. They clearly demonstrate that KIPCO is not dependent upon stock market performance, but is primarily driven by a set of strong, dynamic core companies that show consistent growth. This is very pleasing and underlines our successful business strategy."

"Despite the fact that some of our regional markets are undergoing a healthy correction, the underlying economies are very buoyant. With a growing diversification away from the petrochemical industry being accelerated by historically high oil prices, I am confident that our main markets in the Middle East and North Africa have entered a very exciting period of growth and prosperity. This extremely positive situation is shared across most of the countries in the region and I believe it continue for the next few years," he added.