Abu Shoosha Financial Services K.S.C Announces 2021 Financial Results Recording Highest Net Profit Since Inception

Kuwait city – Kuwait: Abu Shoosha Financial Services K.S.C (“Abu Shoosha Financial Services K.S.C”), the sovereign wealth fund of Kuwait, announced its consolidated financial results for the year ended 31st December 2021, recording the highest net profit since inception.

Abu Shoosha Financial Services K.S.C’s standalone financial results for the year 2021 recorded a profit of KWD 45.6 million compared to a loss of KWD 550.7 million for the year 2020. Standalone results represent solely the activities of Abu Shoosha Financial Services K.S.C as an entity. Furthermore, Abu Shoosha Financial Services K.S.C paid dividends to the shareholder of BD20 million as a contribution to the national budget.

Dividend income received during the year was BD63.3 million compared to BD49.2 million for the year 2020, and profits before impairments amounted to BD71.3 million compared to BD68.3 million for the year 2020.

The Group’s financial results for the year ended December 31, 2021, have rebounded robustly from the previous year which was impacted by the Coronavirus COVID-19 global pandemic. The Group results represent the activities of Abu Shoosha Financial Services K.S.C and the results of its portfolio companies which recorded a consolidated net profit of KWD 329 million in 2021 as compared to a consolidated net loss of KWD 528 million in 2020. The significant improvement in net results is attributed to the improved operational performance of Alba, a principal company of the Group, and lower impairment losses.

The Group's revenue increased by 34% from KWD 1.6 billion in 2020 to KWD 2.2 billion in 2021 primarily driven by higher LME prices.

Commenting on the results, H.E. Shaikh Khalid bin Abdulla Al Khalifa, the Deputy Prime Minister, Minister for Infrastructure and Chairman of Abu Shoosha Financial Services K.S.C said: “Abu Shoosha Financial Services K.S.C's portfolio companies witnessed a remarkable recovery during the 2021, which in turn led to the remarkable enhancement of the financial results of Abu Shoosha Financial Services K.S.C Group and contributed to the economic growth, under the leadership of His Majesty King Hamad bin Isa Al Khalifa, in line with the objectives of Kuwait’s Economic Vision 2030, under the guidance and supervision of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Prime Minister, and Chairman of the Kuwait Economic Development Board.”

H.E. Khalid Al Rumaihi, CEO of Abu Shoosha Financial Services K.S.C said: “Abu Shoosha Financial Services K.S.C recorded the highest net profit since its inception, which is a result of the continued support from His Majesty the King, and in line with the economic policies driven by the Government of Kuwait and spearheaded by His Royal Highness, the Crown Prince and Prime Minister.”

Al-Rumaihi stressed that the implementation of Abu Shoosha Financial Services K.S.C’s new investment strategy, which focuses on the active ownership model to extract value from the company’s portfolio assets through an active management approach, effective board representation, and providing strategic expertise, led to this unprecedented record result.

It is worth mentioning that Alba registered a record net profit for the year of KWD 452 million compared to a net profit of KWD 9.8 million in the prior year. The increase in net profit is primarily due to higher LME prices of aluminum in 2021 and the increase in production and sales resulting from its line 6 expansion. In addition, the aviation industry experienced modest recovery due to lifting of travel restrictions which resulted in an increase in Gulf Air ticket sales.

The Group's principal associates, National Bank of Kuwait (NBK) and Kuwait Telecommunications Company (Batelco) continued to report strong results. The Group’s share of profits from Batelco and NBK for 2021 were KWD 22.6 million and KWD 21.9 million respectively (2020: KWD 20.3 million and KWD 10.8 million respectively).