Padico Holding

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22% Growth in Net Profits for the First Quarter of 2023

Rawabi, 15/05/2023

PADICO disclosed its business results and consolidated financial statements for the first quarter of 2023, with financial results showing a 22% net profit growth of $8.3 million compared to $6.8 million for the same period in 2022.

Earnings per share rose by 55%, and the return on equity and return on assets increased by 23% and 12%, respectively. The share value has reached $1.87 after it had been traded on Palestine Exchange at a price ranging between $1.32 and $1.42 since the beginning of this year. This continued improvement in the company’s core financial indicators is attributable to its investment policy in recent years, a policy based on diversifying and distributing investments across various sectors and reduction of operational expenses.

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

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PADICO Holding’s General Assembly Holds its 28th Meeting

Rawabi, May 8, 2023

PADICO Holding’s General Assembly held its twenty-eighth annual meeting with shareholders holding shares

The meeting was followed by the election of a new Board of Directors for the next term. The new Board consists of individual investors as well as institutional investors, , including Mr. Sabih Al-Masri, Mr. Bashar Masri, Massar International, Arab Bank, Cairo Amman Bank, Palestine Telecommunications Company (PALTEL), Al Maseera International, Nawat Investment, Siraj Fund 1, Palestine Technology Transfer Company, and Rawan International Investment Company.

During the meeting, Chairman Bashar Masri presented the Board’s report for the year 2022, highlighting the most important achievements and successes achieved by the company.

As all topics on the agenda were discussed, the General Assembly approved the administrative report, financial statements and auditor’s report for the fiscal year 2022, as well as the end of the term for some  board members and the election of Ernst & Young as auditor for fiscal year 2023.

“The work of PADICO, its subsidiaries, affiliate companies, and its various investments have witnessed remarkable developments and achievements in various sectors, continuing to reap the efforts of the past years that focused on restructuring some investments and affiliates.”

“We are striving towards further success and consolidating our excellence in the vital economic sectors and in the various governorates of Palestine, believing in the need to do everything possible to bring about a real renaissance that contributes to the support and strengthening of the Palestinian economy.”

In terms of financial performance, PADICO achieved significant growth in 2022, with the shareholders’ profit rising from $21.1 million to $24.9 million at an 18% growth rate. PADICO’s share also saw remarkable activity during the year, ranking first on the Palestine Exchange in terms of volume and value of trading and number of executed.

In response to some shareholders’ questions about the lack of dividend distribution, Masri said: “PADICO was founded to lead long-term development investments in Palestine. This requires the company to maintain a solid financial position and sufficient cash flow to enable it to achieve its investment objectives in the light of the challenges facing the Palestinian economy.” He noted that the approach of the Board of Directors in the past years required a focus on boosting investments and increasing the company’s profits, which PADICO has succeeded in, through gaining steady and high profits in order to distribute sustainable profits to shareholders in the future.

Regarding the major developments in PADICO in 2022, Masri said: “2022 was full of achievements and successes in all sectors where the company is active and investing including telecommunications and information technology and real estate sectors, which saw the largest activity in 2022, in addition to the financial r, industrial and agricultural, tourism, infrastructure and energy, and the industrial zones sectors.

He also noted that PADICO’s recent decision to appoint Abdullah Sabbat as its new Chief Executive Officer in the coming period aligned with the company’s strategy of investing in qualified, capable Palestinian leaders who can further grow the company.

Masri asserted that the robustness and economic stability of the company stem from the soundness of the wise directions and policies approved and led by the Board of Directors for many years, with the support and confidence of shareholders in controlling and rationalizing expenditures and increasing the efficiency of operations and production, in order to strengthen the Company’s financial position and cash flows and stabilize its position as the leading investment company in Palestine.

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Abdullah Sabat appointed CEO of PADICO Holding

The Palestine Development and Investment Company (PADICO Holding) has announced the appointment of Abdullah Sabat as CEO during a board meeting held today at the company’s headquarters in Rawabi, Palestine.

Abdullah Sabat accumulates over 20 years of experience in management and investment, locally and internationally. He is a Senior Partner at Massar International and previously served as the General Manager of Siraj Investment Fund. Formerly, Sabat served as an audit manager at Ernst & Young, where he audited several listed and private companies and investment funds.

Sabat serves as a board member in various public and private companies; he is the vice chairman of Palestine Exchange (PEX), a board member of Palestine Telecommunications Company (Paltel), chairman of the Palestine Leasing Company (PalLease), and a board member of Palestine Monetary Authority (PMA).

Bashar Masri, chairman of PADICO Holding, expressed his happiness with the appointment of Sabat as CEO, saying: “This appointment charts the next stage, as we are striving to accumulate our successes and achieve breakthroughs in vital economic sectors in Palestine, and Mr. Sabat is one of the leading expertise of the private sector with whom I have worked closely for many years. We have confidence in his professional abilities and familiarity with the challenges of investing in Palestine.”

Masri added: “We will continue to invest in Palestinian qualified, skilled leaders who are consistent with our vision and have the potential to assert PADICO’s position as an influential, pioneering investment company in Palestine.”

For his part, Sabat thanked Chairman Bashar Masri and the Board of Directors for the trust they have placed in him, saying, “The leadership of the Executive Team of PADICO, giving the significance it represents on the Palestinian economic front is a great honor and a great responsibility that I am prepared to assume in cooperation with the Board of Directors and closely with my colleagues in the Executive Management of PADICO and its affiliated and allied companies.”

Sabat holds an MBA with distinction in Finance & Accounting from the University of Liverpool and a B.A. in Accounting with a minor in Business Administration from Birzeit University. He is also a Certified Public Accountant (CPA) in the State of New Mexico, USA, and a Certified Internal Auditor (CIA) by the Institute of Internal Auditors (IIA).

PADICO Holding is a public shareholding company listed on Palestine Exchange (PEX). It has a base of around 7,000 shareholders and a subscribed 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.

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PADICO rebuilds destroyed facilities in Gaza Industrial Estate

Bashar Masri: “I salute the workers and investors who defy the blockade of Gaza.”

Gaza, 17/01/2023

Bashar Masri visited Gaza Industrial Estate for the latest business developments in the factories after PADICO Holding completed the reconstruction of the facilities destroyed during the Israeli aggression against the Strip.

Masri stressed the importance of promoting the Industrial Estate and providing the appropriate investment environment to encourage investors to set up various factories that offer new jobs in the Gaza Strip, which suffers from the highest unemployment rates in the world.

He met with some investors in the Industrial Estate and discussed the importance of joint work and cooperation with all parties, which was translated into this achievement.

“I pay tribute to the workers and investors in the Gaza Strip who are defying the blockade and difficult conditions through hard work and dedication, making the way through to support the GDP in the Gaza Strip and revive the Palestinian national economy. Once again, Gaza reasserts that we Palestinians are able to build our economy.”

Mahmoud Daban, the owner of one of the Foam Line, one of the companies whose facility has been completely destroyed, commented: “The re-operation of the facility has been a difficult challenge, but the efforts made by PADICO in a short period of time has helped to overcome the difficulties of restarting the facility and maintaining the continuity of the livelihood of its employees.” He also appointed that “the presence of Chairman Masri with us today is another motive for us to continue this defying.”

Hazem Al-Ak’ouk, general manager of the Al-Ishara Electrical Systems, which is set to begin production in Gaza Industrial Estate soon, said: “Our decision to invest in Gaza Industrial Estate comes in conjunction with the Estate’s reconstruction, and represents a qualitative shift in terms of increasing production and improving quality.”

Gaza Industrial Estate employs thousands of Palestinian workers whose jobs have been exposed after the Estate’s facilities were destroyed. Still, reconstructing all destroyed facilities has increased confidence in the Industrial Estate, sustaining and increasing employment opportunities.

Zakaria Mushtaha, a worker in the Al-Sawafiri company that was completely destroyed, said: “I want to continue working and earn my livelihood, and I don’t think anyone wants to be unemployed or receive insufficient handouts to sustain support their families. We all strive for a decent life and thank the management of the Industrial Estate and factory owners for their efforts to sustain our jobs.”

Gaza Industrial Estate is one of the Gaza Strip’s most important economies. Today, it has a wide range of factories and industrial and commercial facilities, both local and international. The Estate also enjoys sustainable urban infrastructure, supportive services, and facilities management. It carries out diverse activities and works in various industrial sectors.

In recent years, Gaza Industrial Estate has suffered significant losses due to repeated shelling of the Gaza Strip, especially during the aggression on the strip in May 2021, which destroyed many industrial installations and infrastructure, including part of the solar power plant.

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PADICO Holding disclosed its profits for the third quarter of 2022

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.

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PADICO profits 12.8 million dollars for the first half of 2022

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.

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Signing an agreement to build destroyed facilities in Gaza Industrial City

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.

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The largest share purchase transaction in the history of the Palestine Exchange

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.

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The General Assembly of PADICO holds its annual 27th meeting

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 27th 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.

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PADICO Holding profits $17 million until the end of the third quarter of 2021

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%.