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PADICO HOLDING Reports Profits of USD 23 Million

 

Published on : 01/11/2015

 

PADICO HOLDING Reports Profits of USD 23 Million

 For First Three Quarters of Fiscal 2015

Ramallah, PALESTINE , 1/11/2015

PADICO HOLDING reported profit before tax of USD 23.06 million for the first three quarters official 2015, an increase of 34%over the same period for the previous year.

“The growth of PADICO Holding’s profit is a clear indication of the company's ability to overcome extreme political and economic challenges,” said Chairman of the Board Munib Rashid Al-Masri, referring to the company’s rapid recovery from the economic impact of Israel’s military incursions on the Gaza Strip during 2014 and other economic constraints resulting from Israel’s occupation of the West Bank and the Gaza Strip.

Speaking to the political context, Al-Masri said that among the injustices experienced daily by Palestinians are extra-judicial executions by the Israeli government and attacks by Israeli settlers on Palestinians and their property. He said that attempts by Israel to undermine the integrity of Al-Aqsa Mosque constitute an existential threat to the Palestinian people . Al-Masri called upon the Palestinian government to unite with a clear strategy to withstand Israel’s aggression and to hold the international community to its obligations to protect the human rights of Palestinians.

CEO Samir Hulileh indicated that “the 34% rise in PADICO HOLDING’s profit is due to the growing profits of a number of our subsidiaries.”The Palestine Real Estate Company (PRECO) made USD 3.27 million before tax primarily through the sale of development property, representing a 457% increase over earnings for the same period the previous year. Profits of the Palestine Industrial Investment Company rose by 18.6% to USD 5.65 million.

  

PADICO HOLDING’S PROFIT, REVENUES AND EXPENSES DURING THE FIRST THREE QUARTERS OF FISCAL 2015(RELATIVE TOTHE SAME PERIOD IN 2014):

Net consolidated profit rose from USD 16.57 million to USD 21.94 million despite losses experienced across the tourism sector regionally due to political instability.

Consolidated revenues increased by 21.7% from USD 83.04 million to USD 101.10 million as a result of an increase of 35.6% in the operational revenues of subsidiaries, up from USD 51.62 million to USD 70 million. Operational revenues of the Palestine Real Estate Investment Company increased by212%to USD 21.15 million and of the Palestine Industrial Investment Company increased by14%toUSD 37.98 million.

Consolidated expenses increased by 19% from USD 66.78 million to USD 79.50 million primarily as the result of a 30% increase in the operational expenses of subsidiaries from USD 39.13 million to USD 50.86 million. This was, however, accompanied by an estimated increase of 35.6% in the operational revenues of subsidiaries.

Consolidated administrative and general expenses increased slightly from USD 11.88 million to USD 12.32 million.

Financing expenses decreased by 1.4% from USD 8.93 million to USD 8.81 million.

Consolidated depreciation and amortization expenses increased by 1.6% to USD 6.38 million.

Income Tax Expenses rose from USD 0.56 million to USD 1.13 million.

FINANCIAL POSITION OF PADICO HOLDING AT END OF Q3 2015(FROM 2014 YEAR END):

Total consolidated assets stand at USD 827.67 million (current assets: 13.5%, non-current assets: 86.5%).

Equity rights of shareholders stand at USD 437.97 million, up 1%from USD 433.58 million following the payout of USD 12.5 million in cash dividends for 2014 at5 cents per share.

Total consolidated liabilities stand at USD 288.3 million, a2.8% decrease resulting primarily from a USD 7.66 million drop in accounts payable. Borrowing (debt securities, loans, and credit facilities) represents 81%, down0.5% from USD 234.11 million at 2014 year end to USD 232.96 million.

PADICO HOLDING issued the first corporate bonds in Palestine in September 2015, paving the way for other companies to follow. These bonds, now worthUSD85 million, will mature on 15 September 2016. Building on its success, the company plans to issue new bonds ahead of this date.

CURRENT PROJECTS

Jericho Gate is a comprehensive development project located in historical Jericho which offers housing, tourism, recreational and cultural amenities on 300 hectares. It is the first and largest project of its kind in Palestine and was launched by PADICO HOLDING in partnership with the Palestinian Telecommunication Company (PALTEL) and the Palestine Real Estate Company (PRECO). Al-Tarifi Company for Reconstruction and Contracting was contracted in August for the development of approximately 40 kilometers of roads by February 2016. Tenders will be announced for the development of other infrastructure components, including water, electricity, sanitation and irrigation, over the next two years. The project’s director, Al-Syed Ahmed, brings to the project over 25 years of experience in finance, project management and development of renewable energy projects in numerous countries across the Middle East and North Africa.

Rabeiat Al-Quds is a real estate project located in southern Jerusalem. A permit application for 82 units was filed with the municipality in 2014.Construction is expected to begin before the end of 2015 . Twelve additional units are planned for a second phase.

The planned capacity of the Power Generation Project in Jenin has been increased from 200 megawatts to 450 megawatts.  Arrangements to obtain natural gas from Israel have been cancelled and final plans are in place for the provision of natural gas by British Gas. The plant is expected to start operations in 2018.Capital for the project stands at USD 10 million and is expected to increase to USD 120 million over the next three years. The project’s capital has been restructured, with the Gaza Electricity Company reducing its share from 43% to 5% and the Palestinian Telecommunication Company, the Arab Bank and the Palestinian Investment Fund entering the shareholder base. PADICO HOLDING owns 20% of the project.

 

 
 
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