Kuwait's GIH posts $154.9m Q4 net loss

Firm reports a full-year net loss of KD148.8m in 2009, compared to net loss of KD257.6m for year-ago period.
Kuwait's GIH posts $154.9m Q4 net loss
Q4 LOSS: The company reported a full-year net loss of KD148.8 million in 2009. (Getty Images)
By Reuters
Sun 14 Mar 2010 11:32 AM

Kuwait's Global Investment House has narrowed its fourth-quarter net loss to KD44.6 million ($154.9 million) in the driving its shares two percent higher.The company reported a full-year net loss of KD148.8 million in 2009, compared with a net loss of KD257.6 million for the year-ago period, it said in a statement on the Kuwaiti bourse website on Sunday. It did not give a reason for the loss.

In January, Global's Managing Director Maha al-Ghunaim said there would be a "huge improvement" in 2009 results, and said was optimistic about growth in 2010, signalling the worst was over.

Reuters calculations based on previous financial data, which showed a net loss in the first nine months of KD104.2 million, put the fourth-quarter loss at KD44.6 million. That compares with a net loss of KD360.5 million in the same period in 2008, according to Reuters data.

Shuaa Capital had forecast Global's fourth-quarter net loss at KD13 million, in a Reuters survey.

Global, one of the country's biggest investment firms, reached a deal with creditors in December to reschedule $1.7 billion in debt, and entered into new three-year facilities with each of its 53 lending banks.

In a separate statement on Sunday, Global said it made a profit of about KD00,000 after selling its stake in Egypt's Real Estate Finance House Co, to Cairo-based Arab African International Bank.

Global said the profit would be included in the 2010 first-quarter results.

The troubles of Global and other investment firms, including major Islamic firm Investment Dar, led the government of the world's fourth-largest oil exporter to approve a rescue package worth KD1.5 billion last year.

Shares of Global surged 6 percent at 0712 GMT after the results were released. (Reuters)

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