Author: pad1co@dm1n

Rawabi, May 15, 2024

PADICO disclosed its consolidated financial results and statements for the first quarter of 2024, registering a profit attributable to the company’s shareholders at $4.9 million, compared to $8.3 million for the same period in 2023, marking a 41% decrease.

These results were in line with PADICO’s expectations for the performance of its subsidiaries and affiliated companies for this quarter due to the sharp downturn of the Palestinian economy and the halting of operational activities in the Gaza Strip; the largest decline was observed in the tourism and telecommunications sectors, as PADICO’s share of the results from its companies operating in these sectors decreased by $3.1 million, or 60%, compared to the same period in 2023.

On the financial position front, the consolidated assets amounted to $731.1 million at the end of the first quarter of the current year, while consolidated shareholders’ equity amounted to $395.6 million, of which $333.4 million were equity attributed to PADICO’s shareholders.

Palestine Development and Investment Company (PADICO) is a public shareholding company investing in various key economic sectors in Palestine including telecommunications and information technology, real estate, finance, industry and agriculture, tourism, infrastructure, and energy.

“In Line with the Palestinian New Companies’ Law”

Rawabi, 23 April 2024

Palestine Development & Investment Company (PADICO) convened its twenty-ninth annual Ordinary General Assembly Meeting (GAM) to discuss and approve the agenda items.

Bashar Masri, Chairman of the Board, shared the Board’s report for the year 2023, stating, “Since its establishment, PADICO has faced many challenges, and undoubtedly, the situation we have witnessed since the beginning of the last quarter of 2023 has been the most challenging, with the human losses and immense destruction that befell the Gaza Strip, and the repercussions that have affected various aspects of life in the West Bank; collectively leading to a staggering decline at all levels in Palestine,” confirming that the company’s financial position remains solid, despite these challenges.

He added, “PADICO, its subsidiaries and affiliates achieved good financial and operational performance up until the end of the third quarter of the year. We have also worked on expanding into many vital sectors in which we have invested, such as telecommunications and information technology, as well as industry, infrastructure and energy.”

The General Assembly approved the Board’s report and financial statements and discharged the members of the Board of Directors from liabilities for the fiscal year 2023, and elected Ernst & Young as the Company’s external auditor for the fiscal year 2024.

An Extraordinary General Assembly Meeting (EGAM) was held after the GAM where it approved the amended Company’s bylaws and a Renumeration Policy; in line with the new Palestinian Companies’ Law; as a commitment to positive changes in the Palestinian regulatory environment. The Board of Directors were also authorized in taking necessary actions for de-domiciliation out of Liberia.

Palestine Development and Investment Company (PEX:PADICO) is a public shareholding company established in 1993 that invests in various vital economic sectors in Palestine such as telecommunications and information technology, real estate, finance, industry and agriculture, tourism, infrastructure and energy.

“Despite the losses, we remain committed to development and investment.”  Bashar Masri

Rawabi, 03/03/2024

PADICO Holding disclosed its preliminary consolidated financial statements (unaudited) for the fiscal year 2023, where the losses attributable to the company’s shareholders amounted to $11.6 million compared to a profit of $24.9 million for 2022. This significant decline is a result of the aggression on Gaza Strip and a consequent downturn in the national economy across various parts of Palestine effecting PADICO’s subsidiaries and affiliates.

This decline came as a result of losses and provisions recorded by PADICO, its subsidiaries and affiliates for the direct losses and damages in the Gaza Strip which amounted to $73.7 million, of which PADICO’s share is $35.7 million. Additionally, there was a tangible decline in the operational performance of subsidiaries and affiliates during the last quarter of 2023, of which PADICO’s share is approximately $6 million; the company’s profits were anticipated to reach $30 million had there not been an aggression on the Gaza Strip.

Consolidated assets amounted to $730.4 million at the end of 2023, while consolidated equity amounted to $396.2 million, of which $333.3 million attributable PADICO’s shareholders, resulting in a decrease in the company’s book value per share of $1.76 compared to $1.82 at the end of 2022.

Bashar Masri, PADICO’s Chairman of the Board, commented on the business results, “The scale of the damages and losses suffered by PADICO’s investments in the Gaza Strip is significant, as reflected in the preliminary financial statements for the year 2023,” adding, “We are committed to PADICO’s mission; focusing on sustainable development and investment in Palestine, and of course, any setback to the Palestinian economy will inevitably affect the financial and operational performance of the company.” He also emphasized that PADICO is resilient and capable of overcoming crises and its shareholders are committed to continue investing in Palestine despite the extraordinary risks.

The aggression on the Gaza Strip resulted in the destruction of the Ayan Hotel (formerly Al-Mashtal), the biggest five-star hotel located on the northern coast of Gaza City, which had recently undergone a multi-million-dollar renovation and rebranding and launched on 26 August 2023. Moreover, the entirety of the Blue Beach Resort facilities was also destroyed, in addition to the destruction of the Gaza Industrial Estate, including its entire solar energy project which was rebuilt in 2022 after one-third of it was destroyed in a previous aggression on the Gaza Strip in 2021; two months after production had begun. The Palestine Telecommunications Company/Jawwal also suffered direct losses in assets as well as operations which led to disruptions in communication services.

Palestine Development and Investment Company (PADICO) is a public shareholding company that invests in various vital economic sectors such as telecommunications and information technology, real estate, finance, industry and agriculture, tourism, infrastructure and energy, and industrial zones.

Rawabi, 27/11/2023

Palestine Development and Investment Company (PADICO) disclosed its year-to-date financial results ending in the third quarter 2023, where the company achieved a net profit (attributable to PADICO’s shareholders) $10.6 million compared to $17.8 million for the same period last year, a decrease of 40%.  Earnings per share amounted at 5.4 cents, while the book value of the share reached $1.87.

The decline in performance was attributed to the provisions recorded by PADICO subsidiaries and affiliates in response to the current damages caused by the aggression on the Gaza Strip.  An amount of approximately $30 million was recorded as provisions in the third quarter of 2023, whereas PADICO’s share from these provisions amount to $11.5 million approximately. PADICO’s anticipated that its results before these provisions would have been $22.1 million in net profit; which represents a growth of 24% for the same period last year.

The Ayan Hotel (previously Al Mashtal), located on the Northern Beach of the Gaza Strip which was rebranded and launched on August 26, 2023 was destroyed due to the bombardments.  Also, Palestine Telecommunications Company/Jawwal operations and assets suffered direct losses and damages. Gaza Industrial Estate also faced damages, as many of its factories were directly hit within the first three days of the aggression, however, assessing the extent of the damages was not possible after the fourth day, as it was inaccessible to due to its location in the Northern Gaza Strip.

PADICO’s team is diligently monitoring and analyzing the everchanging circumstances, while evaluating future developments across all governorates for their impact on the company’s financial results and cash flows.

PADICO is a public shareholding company that invests in many vital economic sectors, such as telecommunications and information technology, real estate, financial services, industries and agriculture, tourism, infrastructure and energy, and industrial zones.

Gaza, 21/9/2023

The Chairman of PADICO Holding, Bashar Masri, announced a Gaza new solar energy project for generating electricity from solar energy in the city of Gaza. This announcement took place in the presence of dozens of business people from the West Bank and the Gaza Strip, as well as senior officials from the public sector in the Energy and Natural Resources Authority, the Ministry of National Economy, Palestinian Investment Promotion Agency and Industrial Cities Authority.

 

The project aims to provide clean and sustainable electricity in the Gaza Strip, which suffers from frequent power outages and a shortage of fuel needed to operate its main power generation station. The project’s production capacity will reach up to 50 megawatts at a total cost of $60 million upon completion. It is the first of its kind in the region, as solar panels will be installed at high elevations above public areas, including the central islands along most sections of Salah al-Din Street, which stretches from the northern to the southern parts of the Gaza Strip, covering a distance of 45 kilometers.

Masri stated, “Today, with the announcement of this project, we reaffirm PADICO’s vision that is based on development and investment in our beloved homeland, with a focus on vital sectors, particularly in areas where investors are hesitant to invest.”

He added, “The project will represent a qualitative leap towards providing clean electricity in the Strip and will genuinely alleviate the suffering of Gaza’s residents caused by the blockade and continuous power outages.” He emphasized that Gaza needs more projects like this to provide a decent life for our people, especially considering that essential services such as healthcare facilities rely heavily on electricity.

Director of the Infrastructure and Energy Sector at PADICO, Mohammad Najjarsaid, “This project is unique in terms of its innovative design and sustainability, in addition to being environmentally friendly. It will be developed on already used public spaces, allowing for the utilization of other unused spaces for other purposes such as agriculture and housing.”

He also mentioned that the designs are currently being prepared by specialized international companies with experience in the field, namely the Italian company RINA and the Egyptian company Firnas Shuman.

It is expected that this project will encourage other entities to invest in generating more electricity that the Gaza Strip needs for its recovery and growth.

PADICO is a public shareholding company that invests in various economic sectors. The company operates in telecommunications and information technology, real estate, financial services, industry and agriculture, tourism, infrastructure and energy, as well as the industrial cities sector.

Gaza, 18/9/2023

A West Bank delegation of 50 business people and influential figures visited PADICO Holding’s Gaza Industrial Estate (GIE).

The delegation toured the GIE, exploring its facilities, factories, and the solar project providing clean energy. They also learned about PADICO’s vision for GIE’s development near Gaza’s Eastern borders.

 Bashar Masri, PADICO’s Chairman, welcomed the delegation, emphasizing the importance of these visits to shed light on investment challenges in Gaza and inspire economic growth.

He said, “We are pleased with this significant delegation that includes diverse and influential economic sectors, as these visits represent important opportunities that align with our vision at PADICO to stimulate the local economy in the Gaza Strip by intensifying investment efforts. Such visits bring attention to various economic sectors and how to address the challenges they face.”

Samir Hulileh, Chairman of the Palestine Stock Exchange, stated, “This visit is very significant to overcome the obstacles imposed by the occupation between the two parts of our nation, and with this strong determination, we will collectively contribute to creating a developmental renaissance in all aspects of life inthe Gaza Strip.” He also emphasized the importance of the GIE as a leading example to attract more entrepreneurs and large investment companies to initiate similar projects, as they represent an enhancement of the economy and consequently provide numerous sustainable employment opportunities.

Tareq Al-Natsheh, owner of Al-Huda Petroleum Groupsaid, “This significant economic facility represents Palestinian success at its finest. It holds immense importance in the journey of a local economy striving for advancement, and its existence signifies that this economy is still capable of production and development.”

Businessman Bassam Walweel said, “Such visits enable us to closely observe the local economy in the Gaza Strip directly to understand the market’s needs, ultimately leading to the crystallization of new prospects that achieve vital advancements for the national economy. We all hope to contribute together to propel Gaza forward across various economic sectors.” He also appreciated PADICO’s efforts and its pursuit of economic development in different parts of Palestine through its vital projects.

The Gaza Industrial Estate (GIE) was established in 1997 as the first and largest industrial city in Palestine. It serves as the nation’s gateway for exporting Palestinian products from the Gaza Strip to neighboring countries and is a fundamental support for the Palestinian economy. The total area of the Gaza Industrial City is 460,000 square meters, equipped with comprehensive and advanced infrastructure to meet the industrial needs of various types.

Rawabi, 13/9/2023

 

Palestine Development and Investment Company Limited (PADICO) announced the appointment of Nimer Abdul Wahed as the new Chief Financial Officer (CFO) succeeding Amjad Hassoun, who has retired after 25 years of substantial contributions to the company.

 

Abdul Wahed has a distinguished career of over 20 years, most recently in PADICO which he joined in 2018. Throughout this period, he has expertly excelled in senior roles encompassing financial management, corporate business development, and investment. He also amassed more than 7 years of auditing experience, collaborating with prominent local enterprises and international organizations during his tenure at Ernst & Young Global Audit Company.

 

Abdul Wahed is a member of several boards of public and private companies, most notably the Chairman of Palestine Real Estate Investment Company (PRICO) and the Board of Directors of the Palestinian Company for Distribution and Logistics Services (WASSEL), he is also the Chairman of Palgaz Services and Distribution.

 

Abdallah Sabat, Chief Executive Officer of PADICO said, “Abdel Wahed brings an analytical mindset with a strong financial background and track record of significant achievements which, I look forward to further achievements that would contribute to the company’s success and development.” Sabat also extended his appreciation to Hassoun on behalf of PADICO for his efforts and accomplishments during his long years of service, noting that he will remain as a member of the company’s family working as a consultant with the executive management and will continue serving on various boards of directors.

 

Abdul Wahed expressed his gratitude to the Chairman, members of PADICO’s Board of Directors, and the Chief Executive Officer for the immense trust they placed in him. “I look forward to working with the CEO and my Executive Management colleagues to continue to lead PADICO and maintain its prominent status in the Palestinian economy. I am confident that our joint efforts will contribute to greater achievements for this distinguished company,” said Abdel Wahed, also commending Hassoun’s efforts and impact on PADICO’s success throughout his years of service.

Amjad Hassoun, the former Chief Financial Officer, said: “It has been an honor working for this reputable group, PADICO has always been proudly a second home to me, I would also like to thank the Board of Directors and Executive Management for this rich experience, wishing the PADICO every success.”

Abdul Wahed holds an MBA and Bachelor’s Degree in Accounting and is a Certified Public Accountant (CPA) in the state of New Mexico, USA, and a member of the American Institute of Certified Public Accountants.

Rawabi, 15/08/2023

Palestine Development and Investment Company (PADICO) disclosed its financial results and financial statements for the first half of 2023, where the company achieved a net profit (attributable to PADICO shareholders) of $13.9 million compared to $12.8 million for the same period last year, a growth of 8%.

Earnings per share increased by 30%, at 7 cents per share, return on equity increased by 11%, and liquidity increased by 9% compared to the end of last year.

The book value of the share amounted to $ 1.86 as at the end of the first half of this year, as the company’s share was traded on the Palestine Exchange during the first half of this year between values of $1.32 and $1.42.

With these results, the company’s core financial indicators continue to grow   supported by strong performance from subsidiaries and affiliates, and a reflection of the restructuring that has taken place on some investments, subsidiaries and affiliates.

PADICO is a public shareholding company that invests in many   vital economic sectors, where it operates in the ICT sector, real estate, financial, industrial, agricultural, tourism, infrastructure and energy.

Masri: “The Development of the Palestinian Economy is Our Priority”

Rawabi, 23/05/2023

During today’s meeting in Rawabi, PADICO’s Board of Directors re-elects Bashar Masri as its Chairman for another term. During Masri’s leadership in his first term, PADICO accomplished significant and unprecedented successes and achievements, despite the political and economic challenges, which included the consequences of the coronavirus pandemic.

The company also witnessed fundamental changes in the operations of its subsidiaries and affiliates which resulted in an increase in efficiency and further developed their businesses where PADICO maintained its leading position in the market. This contributed to an increase in profits of the subsidiary companies and the growth of PADICO’s market value, which PADICO being one of the most traded shares on the Palestine Exchange.

Masri thanked the Board Members for their trust, and said, “The development of the Palestinian economy is our priority, and we will continue to launch more projects in varied economic sectors, specifically those that are currently underserved and face investor reluctance, in order to create new jobs for our people in those sectors.”

Masri noted that PADICO’s Board of Directors is comprised of a diverse and cohesive group of wise and experienced founding members of the company in addition to new, energetic, and innovative members; and further expressed his pleasure to work with this exceptional team and asserted his confidence in the Board’s ability in achieving progressive and intensive economic projects that will benefit the Palestinian economy. In addition, Masri declared that PADICO will continue its work to create an environment necessary for its subsidiaries and affiliates to maintain leadership in their sectors and achieve excellence in their offerings.

“The new term of the Board will continue what the previous board started, through which the company succeeded in adjusting and rationalizing expenditures and increasing the efficiency of operations and production, as well as strengthening the company’s financial position and achieving rewarding returns for shareholders who believe in PADICO and the value of investing in it,” said Masri.

PADICO is a public shareholding company investing in many economic sectors, such as telecommunications and ICT, real estate, financial services, industry and agriculture sector, tourism, infrastructure and energy, and industrial zones.

Rawabi, 16/5/2023

PADICO Holding announced the formation of a new board of directors for the next four years with the nomination of 10 members. The new Board l consists of founding members from previous periods, as well as new leading youth members. The new board includes Messrs. Sabih Al-Masri, Nidal Sukhtian, Yazid Mufti, Bashar Masri, Jamal Hourani, Khaled Anabtawi, Hisham Masri, Ruba Masrouji, Dalal Iriqat, and Tamer Baransi.

The new board is distinguished by its members’ diverse competencies and experiences and will continue to see more successes and achievements, promoting the Palestinian economy as in the company’s past 30 year history.

The founder of PADICO, Mr. Sabih Al-Masri, expressed his happiness with the company’s achievements over the past four years, which resulted in good financial results despite the complex circumstances, enabling the company to expand its investments into developing the Palestinian economy and providing more job opportunities, especially for the youth. He also asserted that the new board’s investment experience varies between traditional sectors, as well as non-traditional sectors.   and newer sectors.

Three new members with diverse economic and academic backgrounds joined PADICO’s Board of Directors.

Ms. Ruba Masrouji, the CEO of Masrouji Balsam, also serves on several boards, such as Masrouji Group and Al-Quds Bank. She is also a Dunya Women’s Cancer Center and the Popular Art Center board member. Masrouji Holds an MBA degree from Birzeit University.

Ms. Dalal Iriqat is an Assistant Professor of Diplomacy and Strategic Thinking at the Arab American University (AAU), where she previously served as Deputy Head of International Relations. She was named a Young Global Leader by the World Economic Forum in 2021. Recently, Iriqat was elected President of the Business & Professional Women Network (BPW) Palestine. She holds a Ph.D. in Public Administration from Paris I Sorbonne and a master’s degree in Diplomatic Studies from Westminster University, London.

 

Mr. Tamer Baransi is General Manager and board member of BCI, a prominent ICT company operating in Palestine and the region. He serves as a board member of many economic organizations and companies, such as the Palestinian Information Technology Association of Companies (PITA), Palestine’s Information and Communication Technology Incubator (PICTI), and the Arab ICT Union. Baransi holds a bachelor’s degree in Economics from the University of Essex in the UK.

PADICO Holding is a public shareholding company listed on Palestine Exchange (PEX). It has a base of around 7,000 shareholders and a paid-in capital of $250 million. The market value of PADICO and its listed and unlisted companies exceeds $2 billion invested in vital economic sectors across Palestine.