UAE's IPIC's H1 profits hurt by lower oil prices

IPIC attributed losses to a fall in the share price of UniCredit, in which it holds a 5.04% stake

IPIC's H1 profit hurt by industry downturn
IPIC's H1 profit hurt by industry downturn

International Petroleum Investment Company (Ipic) reported a net loss of $91mn for the six-month period ended June 30, 2016, compared to a net profit of $1.25bn a year earlier, the company announced last week.

It attributed losses to a fall in the share price of UniCredit, in which it holds a 5.04% stake. Shares in the Italian bank fell nearly 62% during the first half of 2016 to 1.97 euros ($2.09) 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.

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

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

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

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