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UPDATE 1-Abu Dhabi's IPIC returns to profit as impairments drop
June 8, 2017 / 11:42 AM / 3 months ago

UPDATE 1-Abu Dhabi's IPIC returns to profit as impairments drop

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By Stanley Carvalho

ABU DHABI, June 8 (Reuters) - Abu Dhabi’s state investor International Petroleum Investment Company (IPIC), which merged with state investment fund Mubadala Development Company last month, said it returned to profit in 2016, helped by a sharp drop in impairments and lower feedstock costs.

IPIC owns energy assets across the world, including Spanish firm Cepsa and Canadian petrochemical maker NOVA Chemicals, and a majority stake in Austrian plastics company Borealis.

It reported on Thursday a net profit attributable to equity holders of $446 million in 2016. In 2015 it had fallen into the red with a net loss of $2.6 billion.

Revenues for 2016 fell to $33.8 billion, from $35.8 billion in 2015 due to lower oil prices.

Despite lower revenues, IPIC made a profit thanks to lower feedstock costs, higher petrochemicals industry margins and lower impairments across the group, it said.

Impairments fell sharply to $180 million in 2016 compared to $4.8 billion in the previous year, its financial statement showed.

The firm’s total assets stood at $55 billion at the end of 2016, slightly lower than $57 billion in 2015, and its net debt decreased to $19.7 billion in 2016 from $22.2 billion in 2015.

Earlier this year IPIC and Malaysia’s state fund 1Malaysia Development Berhad (1MDB) reached an agreement to settle a debt dispute.

IPIC and Mubadala Development Company began operations as a merged entity on May 1 this year.

The merged entity, Mubadala Investment Company, is active in 13 business sectors in more than 30 countries. ($1 = 3.6726 UAE dirham) (Reporting by Stanley Carvalho; Editing by Susan Fenton)

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