Kurdistan Investment Company - August results
The Company recorded a strong performance of 6.7% for August 2010 in spite of a downward pressure on the oil price (-9 %) and world equities (-1.3%) related to a bleak outlook of the world economy. The result was also ahead of MSCI Frontier Market index rise of 3 % and MSCI Emerging Markets increase of 5 % in SEK terms. World markets have been weak lately in fear of a double dip recession. The financial crisis revealed that highly indebted developed markets constitute no safe haven for investors. Our long term view remains positive on low indebted and emerging Iraqi Kurdistan.
While all but one of our holdings posted positive figure, two of them contributed significantly. Gulf Keystone soured 28 % after test results from its Shaikan-1 well measured large increases in production capacity. Also, Shamaran Petoleum climbed 23 % during August after announcing a 33.5 % acquisition of a company owning a share in a block immediately north of the promising Shaikan block mentioned above.
During the month we reduced our holdings in Gulf Keystone in order to keep its share in the portfolio within desired range. After receiving a 22 % cash dividend from Heritage Oil following its disposal of its Ugandan assets we increased our position in the company. Our position in Sterling Energy has been increased as we view the company's stake in the Sangaw North block to be promising.
Late August officials announced plans to connect the regions 200 trillion cubic meters of natural gas to the Nabucco pipeline opening up for gas exports to Europe. If realized, the project would imply a substantial boost for the Kurdish economy. We see lots of good buying opportunities and are thus planning a rights issue to be launched in mid September.
For further information, please contact Johannes Liss
Swedish Representative Office
Idrottsgatan 4
222 29 Lund,
Sweden
Phone:+46 46 12 26 17
Phone: +46 73 65 22 824
Web www.godvigcapital.com
E-mail info@godvigcapital.com
johannes.liss@godvigcapital.com
About Godvig Capital: Godvig Capital is an independent fund manager. Together with our advisory and analytical operations we form the Godvig Group. We manage funds that tend to be unique in their characteristics, and that have a tendency to be at the frontier of the investment horizon – regionally as well as intellectually. Further, we advise on additional investment mandates. Our success is dependent on our investors' success.
About Kurdistan Investment Company: Kurdistan Investment Company is the world’s only investment company available with a focus on the Kurdish region.
The investment objective of the Company is to achieve the highest possible long-term capital growth, with lowest possible risk, to our investors.
Kurdistan Investment Company tries to capitalize on the strong investment potential seen in mainly Iraqi Kurdistan but also as investment opportunities arise, other areas in Kurdistan. The Company primarily invests into large-cap Kurdish and Kurdish-dependant companies, private equity as well as listed companies on the stock exchanges in Iraq, its surrounding countries and internationally. The stock exchange in Iraqi Kurdistan is expected to become operational in 2011. Other securities that the Company might invest into are regional bonds, Pre-IPOs and commodities.
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