Abu Dhabi: International Petroleum Investment Company (Ipic) reported a net loss of $91 million for the six-month period ended June 30, 2016, compared to a net profit of $1.25 billion a year earlier, the company announced on Wednesday.

It attributed losses to a fall in the share price of UniCredit, in which it holds a 5.04 per cent stake. Shares in the Italian bank fell nearly 62 per cent during the first half of 2016 to 1.97 euros as at June 30, 2016, but have recovered slightly since to 2.23 euros as at November 14, 2016.

The company, which is being merged with Mubadala, said the downstream portfolio recorded healthy margins, while upstream assets were impacted by the lower crude oil price.

The average price of crude oil was $39.89 per barrel in the first half of this year, 31.13 per cent lower than the same period of 2015.

Ipic reported total revenues of $16.09 billion in the first half of 2016, compared to $18.67 billion in the corresponding period a year earlier.

The operating profit of the company in the first half of this year was $1.43 billion compared to $1.55 billion recorded a year earlier. The group produced net cash from operating activities of $1.65 billion in the period, compared to $1.73 billion in the first half of 2015, the statement by the company said.

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

Commenting on the financial performance, Suhail Mohammad 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. We are highly optimistic for the next chapter in our development.”