Abu Dhabi's IPIC sees H1 profit nearly triple

Investment firm's performance boosted by gains on its financial stakes abroad
Abu Dhabi's IPIC sees H1 profit nearly triple
oil rig, oil field, oil, energy, GCC energy, GCC oil, black gold
By Reuters
Tue 18 Oct 2011 06:33 PM

Abu Dhabi's International Petroleum Investment Co (IPIC) saw its first-half profit nearly triple as the energy-focused investment vehicle posted gains on its financial investments, an updated bond prospectus showed.

IPIC, which has stakes in Spain's Cepsa and Austrian oil group OMV , posted a $424m gain on financial instruments, compared with a loss of $1.1bn for the year-ago period, boosting profit after tax to $1.16bn from $413m a year ago.

Revenue rose 17 percent to $8.63bn.

State-owned IPIC, which has $61.8bn in total assets, gave a AED7.3bn ($2bn) interest-free loan to its unit Aabar in September, the prospectus showed. Unlisted IPIC had raised the funds via an unsecured conventional loan, it said.

Aabar bought Abu Dhabi Commercial Bank's (ADCB) 25 percent stake in Malaysian group RHB Capital earlier this year. Sources told Reuters earlier this month that Aabar would get a $1.9bn loan through its parent IPIC from ADCB to pay for the deal.

The prospectus also showed Aabar has raised its stake in Virgin Galactic to 37.8 percent from 31.8 percent after investing a further $110m in the company.

IPIC, which has a mandate to invest in the energy sector, had a total debt of $31.8bn, according to the prospectus. It has received six equity contributions from Abu Dhabi totalling $3.5bn since inception, the last of which was in 2008.

IPIC will kick off investor meetings in Germany on October 19 for a potential bond issue.

It tapped global debt markets in March when it raised about $4bn in three-tranche euro and sterling-denominated bonds to fund its Cepsa acquisition.

Earlier this month, IPIC also raised its stake in OMV to 24.9 percent.

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