PADICO HOLDING Records Profits of USD 7.33 million during the First Quarter of 2014
Total Consolidated Revenues Registered a Growth Rate of 16.2%, while Operational Revenues from of Subsidiaries Increased by 19.9%
Munib Rashid Masri: The excellent revenues during the first quarter of 2014 are an indicator of further promising results during the upcoming period, especially in light of the recent reconciliation.
Samir Hulileh: The remarkable growth in revenues is an indicator of improved financial performance for a number of projects and subsidiaries.
Ramallah - 30/4/2014 - PADICO HOLDING has achieved significant rise in profits for the first quarter of 2014, as consolidated net profit reached USD 7.33 million, in comparison to USD 6.51 million during the same period last year, recording an increase of 12.7%, while operating profits (EBIT) increased by 12.5% to reach USD 10.45 million during the first quarter of 2014 in comparison to USD 9.29 million during the same period last year.
Mr. Munib Rashid Masri, Chairman of the Board of Trustees, expressed his contentment with the excellent financial performance, while praising the wise investment strategies of the board of directors of PADICO HOLDING which focuses on the diversification of investments into a variety of vital sectors. Mr. Masri also pointed out that these profits coincide with PADICO HOLDING celebration of its 20 years anniversary in Palestine. He also affirmed that the process of construction and development will always be the goal of PADICO HOLDING in order to rise up with the Palestinian economy to a level that is capable of supporting its independence and national sovereignty. Mr. Masri also predicted further increase in profits in the upcoming period.
Going back to the political situation, Mr. Masri praised the signing of the reconciliation agreement and said that it has renewed the hopes of the Palestinian people and reinforced the spirit of brotherhood and national unity amongst them. He also sees it as a sign of the political maturity of Palestinian factions, as they worked onupholdingnational reconciliation above any other interest. He also believes that ending the Palestinian division will help set the appropriate setting to rearrange the internal Palestinian reality, making 2014 a memorable year on the path to the realization of Palestinian statehood which includes all parties and factions in Palestine, as the internal division was the primary concern of the Palestinian people during the previous period, and now after this historical achievement, the direction of the Palestinian people has become clearer.
Mr. Samir Hulileh, CEO of PADICO HOLDING, said that this increase in profits comes as a result of the ongoing improvement in financial performance for a number of PADICO HOLDING projects and subsidiaries. He also added that there are a number of projects that are still in the establishment stage, as their ongoing constituent expenses weigh on the consolidated income statement like Rabiyat Al-Quds Project, Al-Ghadeer Project, Executive Club Project, Jericho Gate Project and the Solid Waste Recycling Project, which contributed to limiting growth in operational profits during the first quarter in 2014. He went on saying that he expects that these projects will result in a significant increase in profits in the near future once they become operational.
Total consolidated revenues registered a growth of 16.2%, going up from USD 25.37 million during the first quarter in 2013 up to USD 29.47 million during the first quarter of 2014. This increase can be attributed to a number of reasons, as operating revenues of subsidiaries witnessed a significant increase during the first quarter of the current year to reach USD 17.30 million, in comparison to USD 14.43 million during the same period of 2014, marking an increase of 19.9%. This increase mainly came due to an increase in rising operating revenues of Palestinian Industrial Investment Company (PIIC), Palestine Exchange (PEX) and Nakheel Palestine.
PADICO HOLDING's share of associates' results of operations increased by 14.70%, going from USD 10.35 million during the first quarter of 2013 up to USD 11.87 million during the first period of 2014. This mainly resulted from the increase in PALTEL Group's net profit by 11.9% from JD 23.20 million during the first quarter of 2013 up to JD 25.97 million during the first quarter of 2014.
On the other hand, gains from the financial assets portfolio witnessed a decrease during the first quarter of the current year in comparison to the same period of 2013, going from USD 0.59 million during the first quarter of 2013 down to USD 0.30 million during the first quarter of 2014.
Operating expenses increased from USD 11.14 million during the first quarter of 2013 up to USD 12.97 million during the first quarter of 2014, marking a 16.4% increase. This increase in operating expenses was in conjunction with a greater increase in operating revenues (19.9%), which indicate an increase in efficiency and production capacity for many subsidiaries.
At the same time, administrative costs and consolidated general expenses increased by 8.8%, going from USD 3.63 million during the first quarter of 2013 up to USD 3.95 million during the first quarter of 2014. Consolidated financial costs also increased from USD 2.65 million during the first quarter of 2013 up to USD 2.88 million during the same period of 2014, coinciding with an increase in average total debt from USD 224.33 million during the first quarter of 2013 up to 229.37 million during the first quarter of 2014.
No change occurred in terms of depreciation expenses and amortization between the first quarter of 2014 and the same period of 2013, as they remained at USD 2.09 million.
Total assets increased from USD 808.67 million by the end of 2013, up to USD 831.86 million at the end of the first quarter of 2014, marking an increase of 2.9%.
Equity attributed to equity holders of the parent company also increased from USD 418.84 million by the end of 2013, up to USD 443.23 million by the end of the first quarter of 2014, marking an increase of USD 24.39 million (5.8%).
Total liabilities mounted up at USD 287.06 million by the end of the first quarter of 2014, in comparison to USD 288.11 million by the end of 2013, going down by USD 1.1 million (0.4%). Bonds, bank loans and credit facilities constituted 81% of total liabilities, and reached USD 232.62 million by the end of the first quarter of 2014, in comparison to USD 226.12 million by the end of 2013, marking an increase of 2.9%. These debts include the bonds that were issued by PADICO HOLDING in 2011 with a nominal value of USD 85 million.
Main Recent Developments for Projects
Jericho Gate Project
PADICO HOLDING is implementing Jericho Gate Project in partnership with PALTEL Group and Palestine Real Estate Investment Company (PRICO). The project is the first of its kind in Palestine and includes the development of a variety of tourist and entertainment facilities on an area of 3,000 dunums in the southern entrance of Jericho. The company has commenced with work on the infrastructure of the project and preparing the main streets that connect it to Jericho. It has also finished preparing the public square for the project on an area of 45 dunums, which will be used during the upcoming period for a number of events and activities. The company also launched the promotional campaign for the project.
Executive Club Project
PADICO HOLDING will be inaugurating the Executive Club Project during next month. This project is the first of its kind in Palestine and is implemented by Jerusalem Development and Investment Co. Ltd. (PADICO Tourism), PADICO HOLDING's investment arm in the tourism sector. The project is located on 2,600 square meters in the Tal Al Safa neighborhood of Ramallah, and with a total investment value of over USD 6 million. Additionally, it includes three restaurants of various styles, an indoor swimming pool with outdoor gardens, support services, a multipurpose hall, a spa, and a gym.
Rabiyat Al-Quds Project
PADICO HOLDING is preparing for launching the promotional campaign for "Rabiyat Al-Quds" Project. Selling apartments for the project will also start in the upcoming period. The project is being implemented in South of Jerusalem and consists of the construction of 22 residential buildings. The land on which the project will be established lies to the south of Jerusalem, around 5 kilometers from the Old City, in Hawd Al-Alami area near Beit Safafa, in Al-Sharfat area near Gilo Street overlooking the most prominent sites in Jerusalem.
The general assembly is scheduled to be held for its annual meeting on 19/5/2014 in Amman/ Jordan while holding a video conference communication with Ramallah. The board of directors recommended in its meeting, which was held on 5/3/2014, that cash dividends should be distributed on shareholders by the amount 6% of the nominal capital, at an actual value of 6 cents per share.