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Palestine for Development & Investment Company PADICO recorded a growth in its total revenues by 9% to settle at $79.13 million in the first nine months of 2011, compared to $72.35 million in the same period of 2010. This growth was explained by the growth in the operating revenues of the company’s subsidiaries by 10% to reach $ 43.4 million. The Company’s stake from its associate results increased to hit $33.61 million in the first nine months of the year 2011 up 16%. PADICO recorded a net income before tax of $ 25.45 million in the first nine months of the current year 2011, compared to $28.89 million in 2010 (down 12%).
The CEO of Palestine Development & Investment Company PADICO , Mr Samir Hulieleh pointed out that the company’s net income’s decline came as an effect of the operating costs’ increases in production centers that haven’t started to achieve revenues yet ,such as Al Mashtal Hotel in Gaza, the expansion of the slaughterhouse ,operating the broiler farms of Palestine Poultry Company, Al Ghadir Neighborhood of Palestine Real Estate Investment Company PRICO, the commercial centre project, Park Plaza in Amman , & Al Nakheel project in Jericho. Mr. Hulieleh added that all other expenses, except the operating expenses, remained stable.
And part of these projects will begin their operation & gaining revenues in the remaining months of the current year 2011 & 2012. This will affect the Balance Sheet of the company. St George Hotel that cost around $10 million, will begin its operating in this month, Park Plaza in Amman will begin its operation in the coming weeks, solid waste project in Nablus will begin its operation before the end of the current year 2011 , while it is expected to begin the operation of Al Nakheel Project in the year 2013.
Mr Hulieleh expected a growth in PADICO’s 2011 net income as a result of the non-operating project that will begin their operation in the following months of 2011 in addition to revenues growth in some new project. He added that total debt of the company increased due to the increase in Bonds & Credit facilities by 46% by offering bonds in an amount of $85. But this item is expected to lower before the end of 2011 since it will be used to payout part of the company’s loans.
Mr Hulieleh announced that the real estate restructuring was accomplished in this current month under PRICO, and it included: the Chalets project & Gaza industrial zone project, Nablus Municipality Commercial Center, Al Mashriq Real Estate Company Projects & the contributions of PADICO in other Palestinian & Jordanian Real Estate companies. He added that the restructuring of the tourism sector under Jerusalem Development & Investment Company (JEDICO) is about to finish, and it consists PADICO’s stake in AL Mashtal Hotel in GAZa, and Jaser Palace-Intercontinental of Bethlehem , Movenpick Hotel in Ramallah , Businessmen club of Al Mashriq Real Estate Company , St. George Hotel & Al Hamra Palace in Jerusalem .
Palestine Development and Investment announced the successful closure of its bonds issuance with an Oversubscription of $85 million, with a $15 million surplus on top of the initial $70 million original offering. Most of the bond holders are banking institutions operating in Palestine and the Palestinian Monetary Authority, the equivalent of the Central Bank in Palestine. The holders of PADICO corporate bonds are: Palestine Monetary Authority, Arab Bank, Bank of Palestine, Capital Bank, Palestine Commercial Bank, Union Bank, Jordan Kuwait Bank, and Alrafah Microfinance Bank, Cairo Amman Bank, and Bank of Jordan. According to the CEO of PADICO Mr. Samir Hulieleh ’; $12 million from the proceeds of the bonds will be Used in the company’s debt restructuring and the rest (73 million) will be used in financing major projects which include: the new recycling project in Gaza, the Water Desalination project in Gaza; a key real estate development in Jericho and the energy plant in the northern West Bank.