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Tue 7 May 2013 12:54 PM

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Abu Dhabi's IPIC sees net profit surge

Gov't owned investment vehicle posts $1.74bn profit in 2012 on back of operational improvements

Abu Dhabi's IPIC sees net profit surge
(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

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

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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