November 5, 2012 / 12:21 PM / 5 years ago

UPDATE 1-Kuwait's KIPCO confident on FY despite Q3 profit fall

* Q3 net profit 6.6 mln dinars vs 7.1 mln dinars yr-ago - statement

* 9-mnth net profit 23.7 mln dinars vs 23.6 mln dinars yr-ago

* Expects to meet FY targets despite difficult conditions (Adds quote, detail, share price)

DUBAI, Nov 5 (Reuters) - Kuwait Projects Company (KIPCO), the country’s largest investment company by assets, remains confident of meeting its full-year financial targets despite posting a 7 percent drop in third-quarter net profit on Monday.

The firm, which has interests in media, industrial, financial, and real estate companies, made 6.6 million dinars ($23.4 million) in the three months to September 30, versus 7.1 million dinars in the same period last year, the statement said.

It missed estimates by EFG Hermes, which forecast that KIPCO would make a net profit of 11.2 million dinars in the period.

It gave no reason for the decline but the Q3 results were in line with the company’s expectations, with its financial services, media and real estate investments continued to show consistent levels of revenue growth, Tariq Abdulsalam, KIPCO’s chief executive for investment, said.

“Although our (nine-month) profits show only a slight year-on-year increase, our companies are demonstrating a high degree of resilience to difficult market conditions. If these trends continue until year-end, then we can expect to meet the financial targets we set for this year,” Abdulsalam said.

Net profit for the first nine months of 2012 stood at 23.7 million dinars, a 0.4 percent increase on the 23.6 million dinars reported in the prior-year period.

The increase was boosted by a 22 percent rise in total revenue, with total assets also gaining to 6.4 billion dinars at the end of September compared to 5.9 billion dinars at the close of 2011.

Shares in KIPCO closed flat on Monday, maintaining year-to-date gains at 32.5 percent, outperforming the wider Kuwaiti bourse which hit an eight-year low on Sunday. ($1 = 0.2818 Kuwaiti dinars) (Reporting by David French; Editing by Rachna Uppal)

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