Font Size

- Aa +

Wed 13 Jun 2012 07:35 PM

Font Size

- Aa +

Abu Dhabi's IPIC posts 96% slump in profit

Market volatility weighs on International Petroleum Investment Company's results

Abu Dhabi's IPIC posts 96% slump in profit
oil rig, oil field, oil, energy, GCC energy, GCC oil, black gold

Abu Dhabi's International Petroleum Investment Company (IPIC) reported a 96 percent slump in 2011 full-year profit on Wednesday, as market volatility and currency exchange risks weighed on its investment portfolio.

The government-owned investment vehicle made a net profit of $44.7m last year, a company statement said, down from $1.3bn in the prior-year period.

But profit from continuing operations, an indicator of core business performance, surged to $540m in 2011, up over 350 percent from the previous year, according to the statement.

"Results for 2011 in comparison to 2010 were subject to both market and economic volatility which continues today," said Khadem al Qubaisi, managing director at IPIC, in the statement.

"The impact of euro/dollar exchange rates on the value of IPIC's euro-denominated assets, in addition to changes in our mark-to-market listed investments, pared the strong performance of our core underlying operations."

IPIC has interests in a number of European-based companies, including Spain's Cepsa and Austrian oil group OMV.

Through its subsidiary, Aabar Investments, it also owns stakes in Daimler and UniCredit.

Total group debt at the end of 2011 stood at $35.8bn, the statement said, and did not reflect the repayment of nearly $1bn in 2012.

Total assets at the end of 2011 stood at $65.3bn while revenues hit $34.3bn, the statement said. Full financial statements were not made available and IPIC officials were unreachable for further comment.

IPIC's first half profit for 2011 was $1.16bn after the energy-focused company made gains on financial investments.

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.