Abu Dhabi: International Petroleum Investment Company (Ipic) recorded a loss of $2.7 billion (Dh9.9 billion) in 2015 marking a significant plunge from the $1.52 billion in profit that was recorded in 2014.
Revenue also took a nosedive falling to $35.8 billion in 2015 compared to $51.2 billion a year earlier. The company in a statement on Thursday attributed the decline to slump in oil prices.
Group assets amounted to $58 billion, down from $66 billion.
Suhail Al Mazrouei, the UAE’s Minister of Energy and Managing Director of Ipic, did not comment on the decline in revenues and profits, but said the company will “prioritise the continued diversification of our energy portfolio.” The diversification will particularly focus on the downstream, refining, and petrochemical business units in order to “mitigate risk in the current industry environment,” he said.
The company’s debt reached $27.5 billion at the end of 2015, down from $29.9 billion in 2014.
“The group’s upstream portfolio was adversely impacted by the global slump in oil and gas prices, which affected revenues from oil and gas sales, while modestly impacting near-term capital expenditure on exploration activities,” the statement by the company said.
On Wednesday, a resolution was passed by His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council to merge Ipic with Mubadala Development Company.
A joint committee will be created with the responsibility of merging the businesses of the two companies, according to a statement on WAM.
