Abu Dhabi's International Petroleum Investment Company (Ipic) reported a 96 per cent slump in 2011 full-year profit on Wednesday, as market volatility and currency exchange risks weighed on its investment portfolio.
The government-owned investment vehicle made a net profit of $44.7 million last year, a company statement said, down from $1.3 billion in the prior-year period.
But profit from continuing operations, an indicator of core business performance, surged to $540 million in 2011, up over 350 per cent from the previous year, according to the statement.
"Results for 2011 in comparison to 2010 were subject to both market and economic volatility which continues today," said Khadem al Qubaisi, managing director at Ipic, in the statement.
"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 has interests in a number of European-based companies, including Spain's Cepsa and Austrian oil group OMV.
Through its subsidiary, Aabar Investments, it also owns stakes in Daimler and UniCredit.
Total group debt at the end of 2011 stood at $35.8 billion, the statement said, and did not reflect the repayment of nearly $1 billion in 2012.
Total assets at the end of 2011 stood at $65.3 billion while revenues hit $34.3 billion, the statement said. Full financial statements were not made available and Ipic officials were unreachable for further comment.
Ipic's first half profit for 2011 was $1.16 billion after the energy-focused company made gains on financial investments.