Kuwait Projects Co., the country’s biggest privately owned investment firm, said third-quarter profit plunged 73 percent after benefiting in the same period last year from the sale of its stake in Gulf Insurance Co.
Net income dropped to 7.1 million dinars ($25.8 million) from 26.5 million dinars in the year-earlier period, the company, known as Kipco, said in an e-mailed statement today.
“The difference in year on year was the income that we gained from the sale of a portion of Gulf Insurance Co. to Fairfax,” company spokesman Robert Hipkins said in a telephone interview. “Added to this, we see good underlying performance from financial services, insurance, real estate and media.”
Kipco, which has holdings in more than 70 companies and conducts business in 26 countries, in September 2010 sold 39.2 percent of its stake in Gulf Insurance Co. to Fairfax Financial Holdings Ltd. for $208.6 million.
Kipco shares slumped 7.1 percent at the close in Kuwait today, before the results were announced. The stock has lost 22 percent this year, compared with a 15 percent decline in Kuwait’s benchmark index.