In 2010 Abu Dhabi’s International Petroleum Investment Company (IPIC) made a net profit of $1.3 billion. IPIC has recently reported that in 2011 their net profit was $44.7 million; a drop of 96%.
Khadem al Qubaisi, the managing director at IPIC, has tried to justify the catastrophic fall in profit by suggesting that the “results for 2011 in comparison to 2010 were subject to both market and economic volatility which continues today. The impact of euro/dollar exchange rates on the value of IPIC's euro-denominated assets, in addition to changes in our mark-to-market listed investments, pared the strong performance of our core underlying operations.”
IPIC is involved with a number of European companies, such as Daimler, UniCredit, Cespa of Spain, and OMV of Austria.
At the end of 2011 total assets stood at $65.3 billion, total debts at $35.8 billion, and total revenues at $34.5 billion. Although IPIC have not released full financial statements for further scrutiny, so it is unknown exactly how their $34.5 billion revenues transferred to just $44.7 million profit.
By. Charles Kennedy of Oilprice.com
Charles is a writer for Oilprice.com