Abu Dhabi's IPIC 2011 net profit slumps to $44.7 million

Abu Dhabi’s IPIC 2011 net profit slumps to $44.7 million

Abu Dhabi's International Petroleum Investment Company (IPIC) reported a net profit of $44.7 million on Wednesday, down from $1.3 billion in the prior-year period, as market volatility and currency exchange risks weighed on profitability.

June 13, 2012 5:48 by Reuters

Abu Dhabi’s International Petroleum Investment Company (IPIC) reported a net profit of $44.7 million on Wednesday, down from $1.3 billion in the prior-year period, as market volatility and currency exchange risks weighed on profitability.

Total group debt at the end of 2011 stood at $35.8 billion, the statement said, and did not reflect the repayment of nearly $1 billion in 2012.

“Results for 2011 in comparison to 2010 were subject to both market and economic volatility which continues today,” said Khadem al Qubaisi, managing director at IPIC, an investment vehicle wholly-owned by the Abu Dhabi government.

“The impact of Euro/Dollar exchange rates on the value of IPIC’s Euro-denominated assets, in addition to changes of our mark-to-market listed investments, pared the strong performance of our core underlying operations.”

Total assets at the end of 2011 stood at $65.3 billion while revenues hit $34.3 billion, the statement said.

(Reporting by Stanley Carvalho; Writing by Rachna Uppal; Editing by David French)