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By Stanley Carvalho
ABU DHABI, June 8 Abu Dhabi's state investor
International Petroleum Investment Company (IPIC), which merged
with state investment fund Mubadala Development Company last
month, said it returned to profit in 2016, helped by a sharp
drop in impairments and lower feedstock costs.
IPIC owns energy assets across the world, including Spanish
firm Cepsa and Canadian petrochemical maker NOVA
Chemicals, and a majority stake in Austrian plastics
It reported on Thursday a net profit attributable to equity
holders of $446 million in 2016. In 2015 it had fallen into the
red with a net loss of $2.6 billion.
Revenues for 2016 fell to $33.8 billion, from $35.8 billion
in 2015 due to lower oil prices.
Despite lower revenues, IPIC made a profit thanks to lower
feedstock costs, higher petrochemicals industry margins and
lower impairments across the group, it said.
Impairments fell sharply to $180 million in 2016 compared to
$4.8 billion in the previous year, its financial statement
The firm's total assets stood at $55 billion at the end of
2016, slightly lower than $57 billion in 2015, and its net debt
decreased to $19.7 billion in 2016 from $22.2 billion in 2015.
Earlier this year IPIC and Malaysia's state fund 1Malaysia
Development Berhad (1MDB) reached an agreement to settle a debt
IPIC and Mubadala Development Company began operations as a
merged entity on May 1 this year.
The merged entity, Mubadala Investment Company, is active in
13 business sectors in more than 30 countries.
($1 = 3.6726 UAE dirham)
(Reporting by Stanley Carvalho; Editing by Susan Fenton)