Aref Energy Holding, part of Kuwaiti investment company Aref Investment Group, expects profit to increase by about 8 percent this year if it succeeds in exiting an investment.
“We are hoping to be successful in exiting one of our matured projects,” CEO Tareq al-Wazzan said in a telephone interview in Kuwait City.
“We expect net returns to be no less than 8 percent of the estimated total exit value, which is KD37.8 million ($138.9 million).”
If successful, gains will be added to the fourth-quarter results, the CEO said, without naming the investment, in adherence with Kuwait’s regulations. The company posted net income of KD10.8 million last year, Bloomberg data shows.
Aref Energy signed a deal in March to acquire a 51 percent stake in Dubai’s Al Meshari Heavy Equipment Trading for $3.5 million. It also holds a 25 percent stake in Synfuels International, which operates in Iraq and Turkmenistan.
The Kuwait-based company also owns a 10 percent stake in Makamin Saudi Company for Oil and Gas Services, as well as operations in Sudan and India.
The company is eyeing an acquisition opportunity in the Middle East and North Africa region, al-Wazzan said. He declined to give further information as the decision is not final.
“Our interest will continue to be focused on the MENA region where a huge bulk of money is expected to be spent on oil and power services over the next five years,” he said.
Aref Energy is also planning to invest about $10 million in a $50 million fund set up by ZhongDe Waste Technology AG for the construction of four energy-from-waste plants in China.
“China is a very attractive market as the energy demand is so huge and hydrocarbon might not be the solution to balance the demand factor there,” al-Wazzan said.
“It is not finalised, but we have intentions to issue sukuk through a local or international financial institution before the end of 2012” to raise the financing required for expansions, al-Wazzan said.
“The amount is not yet determined and will depend on the value of the expansion under discussion,” he said.
The company’s share price dropped 5 percent to 93 fils, when the stock last traded on August 21. The stock has declined 48 percent this year, compared with a 17 percent frop in Kuwait’s benchmark index.
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