First Energy Bank (FEB) announced today a net profit of US$ 6.0 million for the first half of 2010, an increase over the US$ 5.6 million achieved during the same period last year. FEB also reported achieving a gross income of US$ 18.1 million in the first half, registering a boost over last year’s US$ 16.6 million for the same period, with total assets of US$ 1.21 billion of which 51% of assets were liquid.
Commenting on FEB’s results, Mr. Esam Yousif Janahi, Chairman - First Energy Bank, said, “We are extremely happy with our first half results, especially given the challenging market conditions we continue to experience in the region and globally. These results are testament to the dedication and the experience that the FEB family collectively has, and which contributes significantly to the continued confidence our shareholders, partners and investors have in the Bank.”
The end of June 2010 saw FEB’s capital adequacy ratio sustained at a high level of 73%, with placements acting as the prime source of income generation with US$5.6 million from banks and financial institutions, US$3.1 million from sukuk, US$5.1 million share in associates, and US$3.5 million from Islamic financing. The majority of the bank’s assets, 86%, are located within the GCC, additionally, 57% of the bank’s assets are from the financial sector while 34% are from the Energy sector.
On July 10, 2010, FEB successfully launched the floating of MENAdrill Hercules II, its second Friede & Goldman “Super M2” jackup offshore drilling rig, which is now scheduled to be delivered in the first quarter of 2011. The first rig, the MENAdrill Hercules I, is scheduled to be delivered in the last quarter of 2010. Both rigs, which have been under construction since 2008, are part of FEB’s inaugural project, MENAdrill.
Mr. Vahan Zanoyan, CEO of First Energy Bank, commented: “FEB remains focused on building a diversified portfolio of quality assets in the global energy sector, and even though the market remains sluggish, we have managed to accomplish much this year and are well on our way to meeting our strategic goals for 2010.”