“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.
