Masri: Recent events will only increase our determination to invest for the sake of the country
Amman, 31 May 2021
PADICO General Assembly held its 26th annual meeting through visual communication technology, today, Monday, in the presence of shareholders holding shares in person and by proxy, which constitute 72% of the company’s capital, in addition to the company’s Secretary General as rapporteur for the meeting, the legal advisor and the external auditor.
The meeting was headed by the Chairman of PADICO BOD Bashar Masri, who welcomed the attendants and presented the Board’s report of 2020, mentioning the most important achievements accomplished by the company and the challenges confronted during the year.
In his presentation, Masri said, “the year 2020 constituted an unprecedented challenge in our path due to Corona pandemic, which affected the entire economic sector that the company invests in them. The largest damage was in the tourism sector, which has witnessed a complete cessation of work since the first of March 2020, as its losses exceeded $1.5 billion in Palestine, and the gross domestic product decreased by 12%.”
Masri added, “We passed through this difficult stage with stability and steadfastness thanks to the wise policies adopted by the company’s BOD in the past few years, which were represented in controlling expenses, carefully distributing profits, and stopping the bleeding emanating from some projects, which contributed to strengthening the company’s financial position.” Masri pointed out that despite the large impact of the Covid-19 pandemic on the entire economic sectors in Palestine, PADICO and its subsidiaries and affiliates achieved good operational profits. But the decline in share prices on local and regional stock exchanges and the failure to receive dividends from these investments had a tangible impact on the decline in profits in the year 2020 from their normal level.
Masri said, “we were looking forward to the best and working hard at the beginning of this year, but the beginning was not successful, especially with the continuation of the effects of the Corona pandemic, and then the Israeli aggression on the Gaza Strip and the massive destruction incurred on our investments there, but we confirm once again the permanent BOD decision to focus on investment in Gaza and Jerusalem. My message for all the shareholders is that PADICO was established to invest in Palestine despite the risks and I am quite sure of your confidence in us and your support to us to flourish our national economy, and we are determined to invest for the sake of our homeland.”
PADICO’s performance in 2021
The operational performance witnessed a significant decline in the performance of PADICO companies operating in the tourism sector, due to the effects of the Corona pandemic, as previously mentioned, especially since all hotels stopped working and closed completely early last year.
At the level of PADICO’s largest investment, the Palestine Telecommunication Company (Paltel) achieved good results from its operational processes despite the repercussions of Corona pandemic. Paltel sought to enhance and develop its services and products and stimulate optimal technological solutions for subscribers, but its net profits were affected, like many other private sector companies by the decline in the performance of the stock portfolio.
At the level of the industrial sector, Palestine Company for Industrial Investment achieved growth in its operational performance, despite the challenges witnessed in Palestine, including closures and cessation of work. The company continued the construction of a huge dairy factory in Al-Nabi Saleh area in Ramallah and Al-Bireh Governorate, which is expected to start production in the first quarter of 2022. The company is also working on establishing a fodder factory with a local investor in Bethlehem governorate to expand its market share in the southern West Bank, and the actual production will start in 2022. The company is also working on expanding its investments in livestock projects, where its completed the first cow farm in Tulkarem governorate.
In 2020, PADICO inaugurated the generation of electric power from a solar energy project in Gaza Industrial City with a production capacity reaching 7.3 megawatts, which is considered the biggest of its kind in Palestine and the second in the Middle East. But during the last aggression, Gaza Industrial City was bombed, which led to the destruction of 30% of the project.
At the real estate level, Jericho Gate for Real Estate Investment continued the implementation of its unique and prestigious project, as the entire residential lands were sold in the first phase of the project after completing the infrastructure completely. This is in addition to selling other areas within the second and third phases of the project and the company achieved good operational profits.
At the level of new strategic projects, the company, through its investment arm in the real estate sector (PRICO), signed a partnership and investment agreement with the Board of Trustees of Birzeit University to establish a commercial building in Ramallah, which contributes to consolidating the relationship between the private and academic sectors and enhancing cooperation with civil society institutions in a number of investment areas.
At the level of financial indicators, the company, despite the negative impact of Corona pandemic on all the economic sectors in Palestine and the world, was able to achieve consolidated profits of $4.8 million in 2020, the consolidated revenues amounted to $109 million, total assets $780 million, equity $449 million and book value per share $1.49.
The meeting presented PADICO’s participation of the Palestinian civil society during Corona pandemic, as it was one of the first to put the company’s facilities at the disposal of the Palestinian Ministry of Health for the benefit of public service. In Jerusalem, PADICO cooperated with the Jerusalem Consortium by equipping Saint George Hotel as premises for social quarantine. In Gaza, the Blue Beach resort was placed as a center for quarantine and care for returnees from abroad for about a year, and in Bethlehem, the Jacir Palace Hotel was placed at the disposal of officials to support efforts to deal with the epidemic.
It’s worth noting that PADICO Holding invests in vital and a variety of sectors 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.
