National Industries profit up 75%

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Kuwaiti conglomerate National Industries Group reported a 75% rise in third quarter net profit on Wednesday as it is considering a capital increase to fund growth.

Net income in the three months to September 30 was 49.8 million dinars ($179.4 million) compared with 28.5 million dinars in the year-earlier period, the firm said in a statement on the bourse website.

The company is planning to invest 800 million dinars to 1 billion dinars to fund growth and is considering a capital increase of up to 200 million dinars, Chairman Saad Al-Saad told Al Arabiya television.

"It won't be more than 200 million dinars if it happens and the rest of the money would come from banks and the sukuk programme the firm has announced," said Saad, according a summary of an interview sent to Reuters.

He added that the firm would make a decision soon about the capital hike, possibly even before the end of October.

The company said in July it planned to raise $1.5 billion by selling sukuk, or Islamic bonds, to fund investments in gas, petroleum and petrochemical projects.

Saad also said the firm was aiming at an annual 15% growth of profit and shareholder equity until 2012.

National Industries has diversified away from its core construction materials business by investing in petrochemicals, engineering and metal industries projects.

National Industries said in April it planned to invest 200 million dinars in a petrochemical project in Saudi Arabia.

Earnings per share rose to 43 fils in the third quarter from 26 fils in the same period a year ago. There are 1,000 fils to the dinar.

Shares of National Industries fell 2.08% on Wednesday to 1.880 dinars. - Reuters

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