Author: pad1co@dm1n

Rawabi, 14/11/2022

PADICO Holding reported its business results and consolidated financial statements until the end of the third quarter of 2022. Financial results showed a growth in net profits of $17.8 million compared to $17.0 million for the same period in 2021.

The company grew total revenues by 10%, from $99.0 million to $108.8 million, and affiliates’ operating revenues rose 16% from $64.8 million to $75.2 million.

The equity of PADICO shareholders amounted to $354.9 million, bringing the share’s book value to $1.75, which is 30% higher than the closing price of the stock, which currently trades at $1.35. PADICO has been active since the beginning of the year to take the top spot on the Palestine Exchange in terms of volume and value of trading and the number of trading deals executed.

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. It is the most significant investment group in Palestine, accounting for 41% of the market value of PEX.

14 August 2022  

PADICO Holding disclosed its business results and consolidated financial statements for the first half of 2022. The Company achieved profits of $12.8 million compared to $12.7 million for the same period of last year.

The financial results showed a 15% growth in revenues, which grew from $65.0 million to $74.5 million. The operational revenues of its subsidiary companies also witnessed a raise of 24%, from $42.3 million to $52.3 million.

In his comment on these results, Bashar Masri, the Chairman of PADICO Board of Directors (BOD), said, “PADICO started to harvest the past years’ efforts by restructuring some of the subsidiary and affiliated companies. Arkaan Real Estate Company was listed as the largest investment real estate company in Palestine with an asset base of $380 million. This company originated from the Palestinian Telecommunications Company (Paltel) and its shares started trading on the Palestine Exchange at the beginning of last month.”

Masri added, “The restructuring achieved a great added value for Paltel shareholders, as a result of the increase in the market value for its shareholders by about 50% during a period of 12 months with a total amount of more than $400 million. As PADICO owns 32% of Paltel and Arkaan Real Estate, the restructuring increased the market value by more than $130, which is equivalent to half a dollar per share.”

Masri also highlighted that the real value of PADICO encouraged the Board of Directors to recently take a decision of buying a large share of the Company’s shares in the largest deal implemented in the history of Palestine Exchange.

PADICO shareholders’ equity amounted to $358.7 million at the end of the first half of this year, and the book value of the share reached $1.75 per share, about 21% higher than the closing price of the share, which witnessed remarkable activity during the first half of this year, with trading volumes reaching about 70 million shares, so PADICO’s share ranked first in terms of share turnover (approximately 28%). Moreover, the share price increased by more than 16% since the beginning of the year, to close at $1.45 on 30 June 2022.

It is worth noting that PADICO is a public Holding company listed on the Palestine Exchange, and it is an investment holding company with a broad shareholder base of about 7000 shareholders, aiming at investment and development in Palestine, and considered the biggest investment company in Palestine with a market value of 2 billion dollars, which constitutes 41% of the market value of the Palestine Exchange.

Masri: “Our youth are the basis for building the nation and the real capital that we are proud of.”

Gaza 25 May 2022

In the presence of the Chairman of PADICO Board of Directors (BoD) Bashar Masri and the Deputy Minister of Economy, Chairman of Board of Directors of the Investment Promotion and Industrial Cities Authority in Gaza, Abdel Fattah Zrai’, an agreement was signed to build the facilities that have been destroyed in Gaza Industrial city during the last aggression. The construction bid, for which nine major local companies competed, was awarded to Al Bayan Trading, Industry and Contracting Company.

This agreement comes to promote PADICO’s investments according to its Board of Directors’ vision of the importance to continue trying to improve the economic situation of Gaza through further investments in the Industrial City, which is considered one of the most important economic landmarks in it, as it provides factories with various services and infrastructure facilities, the most important of which is the generation of electric power from solar energy at a lower tariff.

Commenting on this agreement, Masri said, “Gaza Strip needs the contribution of all Palestinians to support the national economy under the difficult challenges and circumstances that the resilient Palestinian people have been living since long years in which they were deprived of the simplest components of life.”

He added, “This step aims to develop the industrial city and raise the level of its services, and to participate in supplying the local economy in the Gaza Strip by providing an investment environment at a high level and advanced standards, through which we aspire to provide job opportunities for our youth in Gaza, as they are the basis for building the homeland and the real capital that we are proud of,” expressing his confidence that this step will motivate leaderships again to work and invest in the Gaza Strip.

For his part, Zrai’ said, “We appreciate the role of PADICO by its continuous investment and activation of the economic movement through huge projects under the challenges and impediments that limit the capital appetite to invest in Gaza Strip.”

He added that the presence of PADICO chairman of BOD in Gaza Bashar Masri today affirms the preparedness of some great investors to take risks to support their country, calling the national Palestinian investors to visit Gaza Strip and invest in it.

Under this agreement, Al Bayan Trading, Industry and Contracting Company will start implementing the construction work of all destroyed facilities in Gaza Industrial City, according to international specifications and standards and under the supervision of a specialized engineering staff of Gaza’s young men and women.

Gaza Industrial City is the first city of its kind in Palestine, which today includes a large group of factories and industrial and commercial companies, both local and international, and provides thousands of job opportunities The city also has a sustainable urban infrastructure in addition to support services and facilities management, and a variety of activities and businesses are carried out in various industrial sectors.

It is noteworthy that the Gaza Industrial City has incurred great losses in the past years as a result of the repeated bombing of the Gaza Strip, especially during the recent aggression, which led to the destruction of many industrial facilities and infrastructure, including part of the electric power plant.

Masri: The decision to buy PADICO’s shares achieves significant gains for its shareholders

Rawabi, 23 May 2022 

In a transaction, which is the largest in the history of the Palestine Exchange, PADICO, through one of its financial investments arm, purchased 42.2 million shares of its traded shares at an amount of $51 million. and the transaction was executed at a price of $1.21 per share.

With this transaction, PADICO’s portfolio owned about 18% of the company shares, bringing the book value of the share to $1.75 per share, which is approximately 40% higher than the trading price.

Commenting on this transaction, Bashar Masri, the Chairman of PADICO’s BOD said, “the decision of the company to buy its shares achieves remarkable gains for the shareholders and raises the return on equity (ROE), which is considered one of the most important indicators of profitability, as the real value of the company exceeds its market value with a substantial difference.”

Masri added, “the company’s policy that is based on strengthening the financial center during the last few years enabled it to implement this important and large transaction and prepared it to distribute sustainable profits to shareholders in the future,” stressing that the decision to purchase these shares comes within PADICO’s strategic directions and contributes to supporting the investment process started by the company for more than a quarter of a century.

Since last year, PADICO’s share has witnessed remarkable activity in trading volumes and an increase in the share price by more than 50%. This was accompanied by the company’s increase in annual profits, which amounted to $21.1 million last year, and continued to improve to reach $6.8 million for the first quarter of this year.

It is expected that PADICO’s share price will witness additional activity due to the recent increase in the price of Palestine Telecommunications Company’s shares in the past period, following the announcement of the establishment of Arkaan Real Estate Company, which will be listed on the Palestine Exchange on 3 July 2022, noting that PADICO is the largest shareholder in both companies by more than 30%.

It is worth noting that PADICO is a public shareholding company listed on the Palestine Exchange, and it is an investment holding company with a broad shareholder base of about 7000 shareholders whose goal is investment and development in Palestine. It is considered the largest investment group in Palestine as the market value of PADICO and its companies listed on the Palestine Exchange is $1.8 billion, which constitutes about 40% of the market value of the stock exchange.

Masri: We are determined to continue developing our economy

Rawabi, 11 May 2022 

The General Assembly of Palestine Development and Investment Company Ltd (PADICO) held its 27^th annual meeting on 11 May 2022 via electronic communication technology, with the participation of shareholders who hold shares in person and by proxy at 70.7% of the company’s capital, the company’s Secretary General as rapporteur for the meeting, the legal advisors, the external auditor, the representatives of the Palestinian Capital Market Authority and the Palestine Exchange.

During the meeting, the Chairman of BOD, Bashar Masri, presented the Board’s report of 2021, highlighting the most important achievements and successes achieved by the company despite the challenges it faced in that year.

All topics and recommendations on the agenda were also discussed, and the General Assembly approved the administrative report of 2021, the financial statements and the auditor’s report for the fiscal year 2021, in addition to acquitting the members of the BOD, re-electing Ernst & Young as an auditor for the fiscal year 2022 and delegating the Chairman of the Board of Directors to determine its fees.

During the meeting, Masri said, in 2021 were able to overcome Corona pandemic repercussions, after it negatively affected most economic sectors in Palestine and the world at large. We also succeeded, despite the damages our facilities in the Gaza Strip suffered during the last aggression, in moving forward with our vision for the development of the Palestinian economy, and praise be to God, we have reaped the fruits of the great effort and continuous work of manage PADICO’s companies during the last period, which appeared through the financial results 2021. We are determined to continue developing our path, support our investments, and enhance our financial and operational performance in various sectors.”

He added, “Our vision for this year and upcoming years is represented in creating further job opportunities, focusing on areas that witness exceptional circumstances, which investors find it difficult to take risk in them, especially in Jerusalem and Gaza Strip.”

It is worth noting that PADICO achieved large growth of more than 400% in 2021, which amounted to $21.1 million compared to $4.1 million in 2020. It is also noted that the company was able to achieve great success in the third issue of its bonds, the proceeds of which were allocated to amortize the previous bonds, and the bond subscription process witnessed a large acceptance from investors that exceeded the required amount.

As regards the financial performance for the first quarter of 2033, the company achieved net profits that amounted to $6.8 million compared to $5.9 million for the same period of 2021, equivalent to 16%. On this issue, Masri commented that this growth in profits confirms the integrity of the vision and strategy adopted by the Board of Directors in the past few years and is an obvious reflection of the financial position of the company.

In his response to some questions from shareholders about the non-distribution of dividends, Masri said: “once again, I stress that the company’s current policy, which was approved by the Board of Directors on behalf of the shareholders, is to strengthen the company’s financial position to inject more liquidity into the Palestinian economy, which suffers from a scarcity of investors. Some investors want us to distribute dividends, while most shareholders invested in PADICO to be a part of a long-term investment in Palestine and prefer to achieve better returns and sustainable distributions in the future. We hope that the company will be able to distribute dividends to shareholders in the coming years, noting at the same time that PADICO and its companies have distributed more than $1.5 billion since its establishment.

At the level of the important developments witnessed by the PADICO group of companies, Masri pointed out the importance of the efforts led by PADICO during the past two years in modifying the structure of the Palestinian Telecommunications Company to focus its work and basic activities on the communications and information technology sector, by transferring real estate and financial investments to a new company specialized in the field of real estate development in Palestine. Masri added that these efforts were recently culminated by registering “Arkaan Real Estate” company whose founders will be the shareholders of Paltel, each according to his/her number of shares in Paltel on the expected maturity date at the end of next month, and the set date will be announced next month and the new company will be listed in Palestine Exchange at the beginning of the coming July after a few days of the maturity date.

It is expected that “Arkaan Real Estate” company becomes one of the largest listed companies with an asset base of $350 million, including the Jericho Gate project which is being implemented on a total area of more than three (3) million square meters, in addition to a strategic land portfolio in the West Bank and Gaza Strip that qualifies it to implement large real estate projects, along with local developers and contractors on a partnership basis, and to provide the necessary support for the development of this vital sector in order to achieve an urban renaissance.

Arkaan Real Estate company will have investments in financial companies, which will generate annual profits that enhance its financial position and capability to invest in real estate development.

It is worth noting that the Board of Directors of BRICO Real Estate Company is expected to decide not to invest in new projects so that Arkaan Real Estate Company will become the only real estate investment arm of the group.

In line with the state of growth and advancement witnessed by the PADICO Group, Masri pointed out that the company is continuing to consolidate the rules of governance to include all aspects and leadership levels in the group by providing the boards of directors of its subsidiaries and affiliates companies with diverse expertise and competencies.

Rawabi, 31 October 2021

PADICO Holding announced the results of its performance and financial statements by the end of the third quarter of 2021. The financial results of the company revealed a growth in its net profits at $17 million compared to $2.3 million for the same period of last year, which is an increase of 600%.

Regarding these positive financial results, the chairman of PADICO BOD Bashar Masri said, “PADICO continues to grow and develop.” He attributed the profit growth in the third quarter to the improvement in the business results of most of the subsidiaries and affiliates companies, especially since the private sector companies returned to better operation and production, with the exception of the tourism sector companies, which are still suffering from the repercussions of the pandemic in light of the continued restrictions on incoming tourism.

Masri continued saying that the company achieved profit growth despite its investments in the Gaza Strip, which is still suffering from losses as a result of the last aggression and the continuous siege on Gaza that led to the economy shrinking.

Masri added that the company was able to achieve during the third quarter a considerable achievement by issuing new bonds worth 120 million dollars last August with the participation of 11 local and regional investors, from banks operating in Palestine, in addition to joining new investors to this issuance including financial and public institutions and provident funds, where there was an oversubscription of 15% over the total value of the issue, which reflects the state of satisfaction of bondholders, as a result of the company’s fulfillment of all its obligations in the previous issuances, which also affirms the strong financial position of the company.

Moreover, the equity grew by 9.7%, rising from $448.9 million at the end of 2020 to $492.5 million at the end of the third quarter of this year, equivalent to $43.6 million, and assets grew from $780.0 million to $809.3 million, equivalent to 3.8%. As for liabilities, they decreased by $14.3 million, as a result of a decrease in the level of borrowing from $253.7 million to $242.6 million, equivalent to 4.4%.

Operating a solar power plant and adding a new source of water in Jericho Agro-Industrial Park (JAIP)

Rawabi, 24 October 2021 

The Investment Promotion and Industrial Estate Agency (IPIEA) signed an agreement with Jericho Agro-Industrial Park (JAIP) for the development, management and operation of JAIP, a subsidiary of PADICO Holding, a management, operation and maintenance agreement of the Solar Energy Project in JAIP, and another agreement to provide JAIP with additional water resources through the Palestinian Water Authority.

IPIEA in the two agreements was represented by the Chairman and the Minister of National Economy Khaled Osayli, while the Water Authority was represented by Minister Mazen Ghneim and JAIP was represented by its Chairman Khaled Anabtawi.

The solar energy system project aims to provide alternative energy with a production capacity of two megawatts that will contribute to reducing the cost of electric power to factories, which will contribute to increasing the competitiveness of JAIP. This project was implemented with the support of the United Nations Development Program (UNDP) and the Japanese government.

While the second agreement aims to provide JAIP with an additional regular source of water from the sources available in the Jericho Governorate and the Jordan Valley, at a rate of 150 cups per day, for industrial and drinking purposes.

In this context, Al-Osayli affirmed the authority’s commitment to providing facilities to investors in general, especially projects in industrial areas, which are considered a national priority for their ability to advance development, production and creating job opportunities.

For his part, Anabtawi said that solar energy projects are very feasible for industrial facilities and have an effective role in reducing production costs, as electricity is one of the most important production inputs. Consequently, the presence of solar energy to feed these factories with electricity is not only beneficial to them, but also contributes to increasing the competitiveness of these factories with their local and regional counterpart.

Anabtawi added, “The solar energy system project was implemented on the roofs of 22 hangars in JAIP, with a total area of ​​21,000 square meters, especially since the staff of PADICO has experience in managing and operating alternative energy projects, and the water agreement comes to ensure regular and permanent water supply for factories, which contributes to ensuring the continuity of their production.”

He also pointed out that JAIP has become, after the signing of these two agreements, a more attractive district for investment, noting that the industrial electric tariff has been approved previously by the government.

It is worth noting that the total area of JAIP is 615 thousand square meters. The first phase of the development of the Park, which is located on 140 thousand square meters with an integrated and appropriate infrastructure to meet the needs of the industrial and agricultural projects, was completed. And it was built with a high level of technology with its inclusion of multiple systems that preserve the environment and energy within effective management. Currently, preparations are underway to start work on the infrastructure works for the second phase of the project.

Rawabi, 23 October 2021 

The Gaza Industrial Estate Rooftop Solar Energy Project of Gaza Industrial Estate (GIE), which was established by PADICO Holding, received the United Nations Global Climate Action Award entitled “Self-Reliance”, in the category of financing for the purpose of investing in environmentally friendly projects in cooperation with between the International Finance Corporation (IFC), the World Bank Group and PADICO Holdings. The UN Global Climate Action Award was announced in Bonn. The handover ceremony will take place at the United Nations Climate Change Conference (COP26) to be held in Glasgow next month.

The International Prize for Climate Action is a prestigious global award, which is granted by the United Nations World Climate Organization for the first time to Palestine, highlighting creative projects and the ability of peoples around the world to confront climate change.

Masri inaugurated the generation of electric power from solar energy project in Gaza Industrial City last March, in line with PADICO’s vision of investing in environmentally friendly development projects. This project is considered the biggest of its kind in Palestine and the second in the Middle East with a production capacity reaching 7.3 megawatts and a total amount of around $12 million.

The project provides electricity for all factors, commercial facilities and the international organizations existing in the Gaza Industrial City.

Masri expressed his pride that the project has been awarded this prestigious award by the United Nations, especially since it is considered an ideal solution to the large deficit in electrical energy that the Gaza Strip suffers from, due to the siege imposed on the Strip for 14 years.

Masri added that this award is to our steadfast people in Gaza Strip living under the siege with patience after the destruction to heal their wounds. This strategic project has been launched to alleviate their sufferings and to contribute to strengthening the economic structure there, despite the destruction of a large part of it during the last aggression on the Gaza Strip, which incurred Gaza Industrial Estate losses exceeding $12 million. Moreover, this award confirms the capability of our people to build their state and economy through sustainable projects. We have a strong will and solid determination to build the economies of countries and today we seek to advance our state and people.

In his turn, Khaled Anabtawi, Chairman of the Board of Directors of PADICO (the developer of Gaza Industrial City), said that the project contributed to the high rates of operation and the reduction of production costs in Gaza Industrial City, as a result of the availability of a permanent and uninterrupted source of electricity, which means creating additional job opportunities. This greatly affected the private sector and economic facilities in Gaza, and today the factories in JAIP are working permanently with regular electricity and at a lower tariff.

He added that PADICO staff has worked for long years on this project challenging several difficulties and obstacles in order to bring in materials and special solar cells in the construction of the project. But thanks to God and everyone’s efforts, we have overcome that and were able to complete the project in record time.

He pointed out that this is the second international award granted to this electricity generation project from solar energy on rooftops in Gaza Industrial City, where the project received the Excellence Award from the World Bank Group in 2019, in recognition of the efforts it made in overcoming all risks to ensure the sustainability of the project that meets one of the main needs in the sector.

Bashar Masri: Strong results give rise to optimism and the second half will be better

Rawabi, 15 August 2021 

PADICO Holding achieved a qualitative growth in its profits for the first half of 2021, which amounted to $12.8 million compared to losses of $2 million during the same period of 2020, despite the huge losses incurred by the company’s investments and projects in the Gaza Strip during the recent Israeli aggression in the Gaza Industrial City, and the damage to the solar power generation project from solar energy that was operated last March.

Bashar Masri, PADICO’s Chairman of BOD said that the results of the first half are an indication that PADICO is going in the right direction, as it was able to cross a difficult stage with stability and steadfastness, achieving exceptional growth despite the difficult conditions experienced by the global economy, which directly and indirectly affected the company during the Corona pandemic.

Masri added that these strong results give optimism and I hope that the performance in the second half of the current year will be better, God willing, and I assure all that the future carries further growth, especially with the determination and confidence of investors and shareholders in the capability of the company to accomplish achievements.

Revenues grew in the first half of this year by 37%, from $47.4 million to $65 million. PADICO attributed this growth in revenues to the increase of PADICO share from the results of the allied companies from $7.5 million to $17.4 million.

As for equity, it grew by 9% as a result of its increase from $448.8 million to $490.6 million, an increase of $41.8 million. This growth was supported by the increase in the prices of many traded shares in which PADICO and its subsidiaries and affiliates invest in the local and regional markets.

As regards the assets, it grew by 4.3%, equivalent to $34 million, from $780 million at the end of 2020 to $814 million in the end of the first half of 2021. At the level of liabilities, in its turn, it dropped by $8.1 million as a result of the decrease in the level of borrowing from $253.7 million to $246.8 million, equivalent to 2.7%.

It is noteworthy that PADICO Holding achieved great success, a few days ago, by issuing bonds worth 120 million dollars, as it witnessed a large acceptance from investors, which resulted in an oversubscription of 15% over the total value of the issuance.

It is remarkable that PADICO Holding invests in vital and diversified sectors, most important of which is communications and information technology, financial services, real estate, tourism, industry and agriculture and industrial cities, in addition to infrastructure and energy. It continues to work to achieve its mission and commitment to help develop the Palestinian economy, create job opportunities, and launch creative economic initiatives.

Masri: The great success indicates the confidence of investors

Rawabi, 10 August 2021

PADICO Holding issued new bonds in $120 million, with a term of five years, where the entire value of the issue was covered, in a private subscription with the participation of 11 local and regional investors.

Bashar Masri, Chairman of PADICO’s Board of Directors, expressed his happiness for the high confidence in PADICO, especially that the subscription process witnessed great acceptance by investors, especially from banks operating in Palestine, in addition to the joining of new investors in this issuance from financial and public institutions and provident funds. The volume of the subscription amounted to 138 million dollars, a 15% surplus over the total value of the issuance, which amounted to 120 million dollars.

Masri clarified that the majority of banks that subscribed to the first and second issues renewed their subscriptions to the new issue, which reflects the state of satisfaction of bondholders, as a result of the company’s fulfillment of all its obligations in previous issues.

The general assembly of subscribers in bonds held its first meeting with legal quorum, in participation with representatives of investors, including banks and financial institutions in the presence of the Governor of the Monetary Authority, Dr. Firas Melhem, CEO of the Palestinian Capital Market Authority Buraq Al-Nabulsi, Director General of the Palestinian Deposit Insurance Corporation Zaher Al-Hamouz, Chairman of the Board of Directors of the Palestine Exchange Maher Masri and founders of PADICO Sabih Masri and Munib Masri and members from its Board of Directors and Executive Management.

The general assembly of subscribers of bonds elected the Arabi Group Company for Investment as the trustee of the issuance.

The general assembly of subscribers in PADICO Company had previously approved during an extraordinary meeting, the issuance of the new bonds in an amount of $120 million.

In this context, the governor of the Monetary Authority, Firas Melhem said, “The decision of PADICO Company to issue the third bonds is in line with the direction of the Monetary Authority to encourage major companies to obtain financing through the issuance of bonds. We consider the new issuance as an achievement for PADICO and the Palestinian economy, especially since it comes after a ten years of experience for the Company, where it was the first to issue bonds at the level of the private and public sectors, and we wish PADICO all success in its growth and giving.”

For his part, the CEO of the Palestinian Capital Market Authority Buraq Al-Nabulsi said that PADICO complied to all the requirements of bonds issuance, specifically the Securities Law No. (12) of 2004, and the instructions for issuing securities issued by the Authority’s Board of Directors in 2008, including the Bonds Issuance Publication that included information and data needed to be included in the publication, so as to enable investors to take the decision to subscribe in bonds.

In his turn, the Arab Bank Regional Director, in his capacity as the trustee, expressed his appreciation and thanks to the bonds’ owners for the confidence and election of the Arabi Group for Investment as trustee of the issuance, affirming that the group will work with PADICO and the bonds’ owners to complete the issuance procedures and commitment to laws and regulations in a manner that guarantees the success of the process.

It is noteworthy that the new issuance bonds bear specifications and conditions similar to the previous issuance in terms of coverage ratio, guarantees and other conditions. They are bonds secured by a share pledge and represent an excellent debt, as the value of these shares covers 130 percent of the total nominal value of the bonds, and it includes shares traded for subsidiaries and affiliates of PADICO.

The investors in PADICO bonds will earn a return of not less than 5% during the five-year period of the bonds and the return will be paid semi-annually.

It is worth noting that PADICO Holding invests in various vital sectors, the most important of which are communications and information technology, financial services, real estate, tourism, industry and agriculture, and industrial zones, in addition to infrastructure and energy. It continues to work to achieve its mission and commitment to help develop the Palestinian economy, create job opportunities, and launch creative economic initiatives.