GIH posts net profit of US$ 56.5 million for 2006
Gulf Investment House (GIH) announced today the recording of KD 16,345,027 (US$ 56.5 million) in net profits for the fiscal year ending December 31, 2006.
Operation revenues stood at KD 22.492 million in 2006. GIH delivered earnings per share (EPS) of 40.26 fils with a return on equity of 23 percent. Total assets grew by 14 percent to KD 94.8 million in comparison with last year’s KD 83.1 million.
GIH Chairman, Faisal Abdullah Al-Khazam said the company distinguished itself in a difficult operating environment caused by the latest downturn in Gulf equity markets. “I believe GIH’s performance in 2006 has reinforced its position as one of the GCC’s leading firms of investment and financial services,” Al-Khazam said. “GIH has demonstrated its strong and competitive performance.”
“GIH remains committed to its strategy of identifying direct investment opportunities in the industrial, energy, health and education sectors. With economic fundamentals in the region remaining strong, we believe there are significant opportunities ahead for our shareholders and investors.”
He stated that GIH would continue to expand its activities in the Middle East. “Our direct investments include some of the region’s leading companies in their fields and we are proud of their achievements.”
Al-Khazam commented on the establishment of Afkar Holding Co., a Kuwaiti shareholding company, as being one of the major GIH companies established in 2006. “GIH and its strategic partners believe Afkar will be well positioned to take advantage of long-term investment opportunities in the petrochemical and industrial services sectors in the GCC, the Middle East, India and Turkey.”
The year 2006 also saw the listing of Arkan Al-Kuwait Real Estate Co, in which GIH holds a 21 percent share of capital.
GIH’s diversified portfolio, including investments in the residential and health care sectors in the U.S., was a key to the company’s success in 2006. “Our Funds Portfolio delivered excellent returns on investments, while Innovest Capital Inc., GIH’s wholly owned U.S. subsidiary, has expanded it’s activities by entering new markets such as the Canadian real estate market,” Al-Khazam said.
Innovest Capital Inc. is the originator of real estate investment opportunities in Canada. “As GIH grows, the company is continually striving to recruit and develop the best available national talent and to support the development of Kuwait’s skilled national workforce base,” he added.
“GIH will not stop at the achievements of recent years. We intend to work diligently on behalf of our shareholders and clients to deliver even greater successes in the future,” Al-Khazam concluded.