Abu Dhabi's IPIC sees net profit surge

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(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

Abu Dhabi's International Petroleum Investment Co (IPIC) said 2012 net profit surged on the back of better operational performance and a recovery in the market value of listed equities.

The government-owned investment vehicle, with a main mandate to invest in energy-related assets, said net profit for 2012 jumped to AED6.4bn ($1.74bn) from AED164.1m in 2011.

IPIC has interests in a number of European-based companies, including Spain's CEPSA and Austrian oil group OMV. Through its Aabar Investments unit, it also owns a stake in Italian bank Unicredit.

Past financial results have been hurt by losses on stakes tied to companies owned by Aabar. In 2011, IPIC booked a $3.42bn loss on stakes in automaker Daimler and UniCredit. Aabar has since sold its Daimler stake.

"The profit increase was attributable to the robust operational performance of CEPSA, NOVA Chemicals and Borealis along with the recovery of certain listed equities held by Aabar," IPIC said in a statement.

Consolidated revenue increased to AED190.6bn in 2012 from AED126bn in the previous year, while operating profit rose to AED11.7bn from AED9.2bn.

IPIC's assets fell slightly to $65.1bn in 2012 from $65.3bn in the previous year as growth in assets was offset by divestitures, the statement said, without providing any additional details.

Group debt totalled $35.8bn at the end of 2011, the latest figure available.

In November, IPIC raised $2.9bn through a triple-tranche dual currency bond.

IPIC is a regular issuer in the bond market and has raised acquisition financing from bond sales.

IPIC's portfolio comprises more than 15 investments across Europe, North America, the Middle East and Asia.

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