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IPIC Releases 2014 Financial Year Results

29 Jun 2015

International Petroleum Investment Company (IPIC), wholly owned by the Government of the Emirate of Abu Dhabi, released its full year consolidated financial statements for 2014. IPIC, which operates predominately in the energy and energy related sectors, realized its 30th year of consecutive profitability. Its 21 investments span the entire hydrocarbon value chain, are multijurisdictional, and predominately mature, creating a high quality asset base which captures value and hedges the cyclical nature of its industry.

“2014’s volatility across multiple market and product segments tested and proved the resiliency and consistency of the IPIC portfolio” said Suhail Mohamed Al Mazrouei, Managing Director of IPIC. “Especially in a year of falling oil prices and difficult economic conditions, IPIC’s balanced portfolio helped navigate and surpass the market to report a net result of AED 5.6 billion. Last year, the group went through significant efforts in efficiency optimization, working capital management, and liability management all adding to the bottom line. Especially important to highlight was the nearly AED 13 billion in debt pay downs, associated reductions in interest expense, and the active management of our redemption profile, strengthening IPIC’s balance sheet to successfully meet the challenges and growth opportunities of the future. We continue to embrace our long position in the hydrocarbon sector and will look to add key, high quality assets focused in the upstream, specialty petrochemical, and oilfield services spaces with the goal to enhancing portfolio quality and capitalizing on, already realized and realizable, scale and integration opportunities and synergies.”

Key financial highlights include:

  • Revenue of AED 188.0 billion, compared to AED 194.0 billion in 2013, which represents a decrease of AED 6.0 billion largely due to the fall in crude oil prices offset by new acquisitions made by the Group during 2014
  • Profit for year decreased to AED 5.6 billion from AED 7.9 billion in 2013, down AED 2.3 billion as a result of the decrease in revenue offset by the exchange gains on Euro-denominated financial liabilities
  • Total assets of AED 243.5 billion at 31 December 2014 compared to AED 251.2 billion at 31 December 2013, as a result of lower oil prices and depreciation in the EUR/USD exchange rates, set off by the business acquisitions made by the Group over the year
  • Total equity of AED 59.7 billion at 31 December 2014, compared to AED 64.4 billion at 31 December 2013, down AED 4.7 billion, due to exchange losses on translation of foreign subsidiaries incurred owing to depreciation in the EUR/USD exchange rates
  • Borrowings of AED 110.0 billion at 31 December 2014, compared to AED 123.0 billion at 31 December 2013, down AED 13.0 billion, due to repayments of borrowings and exchange gains on Euro-denominated borrowings

“The Government of Abu Dhabi has entrusted IPIC with delivering long term value via wealth creation and preservation, and technology and skills transfers not only unto itself, but to that of the wider United Arab Emirates (UAE) as witnessed by the company’s participation within neighboring emirates in respect of key national infrastructure projects. In my capacity as UAE Energy Minister and Managing Director of IPIC, I commit to furthering the wider development initiatives of the Government of Abu Dhabi and the UAE and would like to first and foremost thank the President of the UAE and Ruler of Abu Dhabi His Highness Sheikh Khalifa Bin Zayed Al Nahyan for his continuous provisioning of opportunities and support. I would also like to thank the Crown Prince of Abu Dhabi His Highness Sheikh Mohamed bin Zayed Al Nahyan along with our Chairman and Minister of Presidential Affairs, His Highness Sheikh Mansour Bin Zayed Al Nahyan, for their unwavering guidance and leadership; our Board of Directors for their invaluable expertise and support; and, our management team and employees for their dedication and hard work in delivering such excellent results.” IPIC is rated Aa2/AA/AA by Moody’s, S&P, and Fitch, respectively, with a stable outlook.