Abu Dhabi – International Petroleum Investment Company (“IPIC” or “the Group”), wholly-owned by the Government of the Emirate of Abu Dhabi, recorded an operating profit of US$ 1.43 billion for the first half of 2016, with its core energy investments producing a robust performance despite the lower oil price environment.

IPIC, which invests across the energy value chain, from upstream oil and gas to petrochemicals, reported total revenues of US$ 16.09 billion in the first half of 2016, compared to US$ 18.67 billion in the corresponding period a year earlier.

IPIC’s downstream portfolio recorded healthy margins, while upstream assets were impacted by the lower crude oil price. The average price of crude oil was US$ 39.89 per barrel in the first half of this year, 31.13 per cent lower than the same period of 2015.

IPIC’s operating profit of US$ 1.43 billion in the first half of 2016, was slightly lower than the US$ 1.55 billion recorded a year earlier. The Group continued to produce strong net cash from operating activities of US$ 1.65 billion in the period, compared to US$ 1.73 billion in the first half of 2015.

However, IPIC recorded a loss of US$ 998 million due to marking to market its 5.04 percent equity stake in UniCredit. Shares in the Italian bank fell nearly 62 percent during the first half of 2016 to Euro 1.97 as at June 30, 2016, but have recovered slightly since to Euro 2.23 as at November 14, 2016.

Consequently, IPIC reported a net loss of US$ 91 million for the six-month period ended June 30, 2016, compared to a net profit of US$ 1.25 billion a year earlier.

Commenting on IPIC’s financial performance, His Excellency Suhail Mohamed Faraj Al Mazrouei, UAE Minister of Energy and Managing Director of International Petroleum Investment Company said, “IPIC’s robust operating performance for the first half of 2016 reflects our sound corporate strategy in a challenging global environment for the oil and gas industry. IPIC continued to generate positive cash flows, benefiting from a strategy of prudent financial management and our long-term strategic investments in a global, diversified portfolio.

“Looking ahead, we are confident that our merger with Mubadala Development Company will create greater opportunities for the combined company. The merged entity will offer scale, geographic reach, significant operational synergies and additional sector expertise, and will further contribute to Abu Dhabi’s economic vision. We are highly optimistic for the next chapter in our development.”

Consolidated assets of IPIC group stood at US$ 57.86 billion as at June 30, 2016, compared to US$ 58.04 billion as at 31 December 2015.