International Petroleum Investment Company (IPIC) announced net profits of $1.5 billion (AED5.6bn) for 2014, a drop of $626m (AED2.3bn).
The company said the drop in profits, owing to a fall in the price of oil, was offset by the exchange gains on Euro-denominated financial liabilities.
In what was its 30th year of consecutive profitability, IPIC said the company experienced difficult economic conditions during the last calendar year.
“2014’s volatility across multiple market and product segments tested and proved the resiliency and consistency of the IPIC portfolio,” said Suhail bin Mohammed Faraj Faris Al Mazrouei, managing director of IPIC.
“Especially in a year of falling oil prices and difficult economic conditions, IPIC’s balanced portfolio helped navigate and surpass the market to report a net result of AED 5.6 billion. Last year, the group went through significant efforts in efficiency optimisation, working capital management, and liability management all adding to the bottom line,” he added.
Al Mazrouei said 2014 saw the company make $3.5 billion (AED13bn) in debt pay downs, which helped strengthen IPIC’s balance sheet.
“We continue to embrace our long position in the hydrocarbon sector and will look to add key, high quality assets focused in the upstream, specialty petrochemical, and oilfield services spaces with the goal to enhancing portfolio quality and capitalising on, already realized and realisable, scale and integration opportunities and synergies,” he said.
The fall in crude oil prices also saw revenue for 2014 drop to $51 billion (AED188bn), which was offset by the new acquisitions made by the group.
Established in 1984, IPIC is wholly owned by the Government of Abu Dhabi, and operates predominately in the energy and energy related sectors. Its 21 investments span the entire hydrocarbon value chain, are multijurisdictional, and predominately mature, creating a high quality asset base which captures value and hedges the cyclical nature of its industry.For all the latest energy and oil 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.
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