IPIC earned US$403.8 million net profit in 2016

ABU DHABI — International Petroleum Investment Company, IPIC, today published its Full Year 2016 audited Financial Results, showing a net profit of US$403.8 million.

IPIC’s portfolio, which since 1st May, 2017 has been part of Mubadala Investment Company following the merger of IPIC and Mubadala Development Company, includes assets operating across the energy value chain, from upstream oil and gas to petrochemicals, along with a portfolio of diversified investments.

The company revenues were US$33.8 billion compared to US$35.8 billion in 2015, primarily impacted by lower oil prices. Operating profit was US$1.9 billion compared to a loss of US$3.6 billion in 2015, the increase was primarily driven by lower impairments for the group during 2016 reporting period.

The company earned a net profit of US$403.8 million compared to a loss of US$2.6 billion in 2015. The move to net profit was primarily driven by improved industry margins positively impacting the performance of its portfolio, and lower impairments across the group.

Total comprehensive income was US$205 million compared to a US$4.1 billion loss in 2015, primarily driven by more favorable EUR/USD exchange rate at year-ends impacting its European assets.

The company had total assets of US$54.8 billion as at 31st December 2016, compared to US$56.8 billion as at 31st December 2015. The difference was primarily due to change in accounting policy for measuring investment property from cost model to fair value model and utilisation of cash for debt repayments.

Net debt of the company decreased by US$2.5 billion down to US$19.7 billion from US$22.2 billion in 2015. Net cash generated from operating activities totaled US$3.3 billion, while cash and cash equivalents at 31st December 2016 totaled US$5.95 billion, up from US$5.4 billion.

Source: Emirates News Agency