Arab Petroleum Investments Corporation (Apicorp), the multilateral development bank owned by the 10 member states of the Organization of Arab Petroleum Exporting Countries (OAPEC), posted a net income of $ 51 million for the first half of 2012 or an increase of 24 percent compared to $ 41 million for the same period of last year, the company said in a statement Tuesday.

Apicorp’s assets rose 18 percent in the first half to reach $ 5.12 billion compared to $ 4.33 billion over the same period last year. The government of Saudi Arabia owns a 17 percent stake in Apicorp.

First half results were bolstered by a 2012 second quarter net income of $ 20 million compared to $ 2 million recorded in Q2 2011, achieved on the back of Apicorp’s ability to continue reducing its funding costs while increasing lending activity, amidst the withdrawal of European banks from financing regional projects.

Commenting on the announcement, Ahmad Bin Hamad Al-Nuaimi, Chief Executive and General Manager of Apicorp, said: "The first half results demonstrate the measured approach to growth practiced at Apicorp, which has allowed it to operate comfortably in carrying out its mandate amidst challenging global economic conditions, marked currently by the ongoing uncertainty of the European debt crisis. These results also provide a strong impetus for Apicorp to continue to diversify its equity, financing and funding portfolios."

He further said "this year, Apicorp has continued to increase the size of its medium term committed funding that has further strengthened its capital base while continuing to support new Arab oil and gas initiatives." Apicorp announced a series of key initiatives and transactions in the first half of this year, which included its collaboration with J.P. Morgan to expand its energy trade finance services to the Arab World and beyond, and Apicorp’s first ever SR2.5 billion ($ 667 million) Shari’ah-compliant term loan facility, which was oversubscribed by leading Saudi banks.

Moreover, Al Nuaimi said "Apicorp is committed to ensuring long term sustainable growth by balancing its continued diversification of business streams and funding portfolios with strong conservative banking fundamentals. As a result, Apicorp continues to enjoy one of the highest capital adequacy ratios for A-rated banks in the Middle East and North Africa region, coupled with one of the lowest leverage ratios. This in turn allows APICORP to withstand the impact of slow global recovery as well as any potential shocks in international markets."

Since its founding in 1975, Apicorp has played a vital role in fostering the development of the Arab energy industry. Over the last 36 years, Apicorp has invested, as an equity owner, in a total of 22 oil and gas joint venture projects worth in excess of $ 16 billion. At the same time, APICORP has participated in direct and syndicated energy finance transactions worth in excess of $ 130 billion. Apicorp’s aggregate commitments in these transactions, both in equity and debt, are valued in excess of $ 11 billion.

Moody’s rates Apicorp A1 for long term and Prime 1 for short term, with a stable outlook.