IPIC announces financial results for the period ended 31st December 2012

IPIC's consolidated revenues were $51.90bn, an increase of 51.3% compared to the same period in 2011. Consolidated assets remained relatively unchanged at $65.16bn, while consolidated liabilities reduced to $49.60bn from $51.04bn the previous year.

Consolidated equity increased to $15.56bn from $14.22bn the previous year, reflecting an increase in consolidated profit of $1.76bn.

IPIC's investments reflect the strategic intention of its shareholder, the Government of Abu Dhabi, to diversify across the hydrocarbon value chain.

IPIC's ratings of Aa3, AA, AA, by Moody's, Standard & Poors, and Fitch respectively, reflect IPIC's status as a wholly-owned Government entity.

IPIC's subsidiaries operate independently, and accordingly IPIC reports on both a consolidated and a segmented basis. IPIC has not guaranteed the debts of any of its subsidiaries and no subsidiary debt may cross default that of IPIC.

IPIC parent level assets total $38.27bn as at 31st December 2012 and asset growth measured over five years, reflects growth of 159.5%. IPIC parent level debt was $18.71bn compared with IPIC consolidated debt of $36.75bn.

IPIC at the parent level manages its expenses through significant recurring dividend streams from its investment and interest income, which totaled $812.23m at 31st December 2012, up 5.7% from the previous year.

At the parent level, IPIC also maintains significant liquidity and as at 31st December 2012, IPIC parent level cash was $1.07bn, with undrawn facility amounts of $1.34bn.

Compañía Española de Petróleos SA (CEPSA), wholly owned by IPIC, is IPIC's largest investment to date. CEPSA delivered robust earnings performance in 2012, driven by the company's global upstream and petrochemicals businesses, which accounted for over 55% of CEPSA consolidated net profit.

The Exploration & Production segment benefitted from firmer crude prices, strengthening of the US dollar, and greater cost efficiencies.

Earnings also benefited from an increase in margins of international activities and the strong performance of its LAB/LABSA product lines. These results reflect efforts to grow and diversify CEPSA's businesses, which in the future will be further enhanced with the start-up of its new phenol and acetone plant in Shanghai. In 2012 CEPSA had revenue of $37.04bn, and as at 31st December 2012 CEPSA's total assets were $19.75bn and net debt was $2.18bn. Its gearing ratio (net debt/total equity) was 21.46%.

During 2012, Nova Chemicals Corporation ("Nova Chemicals"), also wholly owned by IPIC, repaid and pre-paid $800.80m of its debt from internally generated cash, substantially reducing its annual financing expenses and reducing gearing which continues the company's transformation since IPIC's acquisition in 2009. During 2012, the company's board of directors approved expansion of its Alberta production facilities, which will come on-line late 2015 and add a further 400kt/y of Polyolefin to its production capabilities. Furthermore, Nova Chemicals is on track to become one of the first North American petrochemical companies to utilize competitive feedstock from shale gas produced in North America and for its Ontario plant. In 2012, Nova Chemicals had revenue of $5.05bn, EBITDA of $1.15bn, and net profit of $543.7m, with a margin of 10.76%. As at 31st December 2012, Nova Chemicals' total assets were $5.64bn and net debt stood at $140.2m. Gearing ratio (net debt/total equity) was 4.90%.

Borealis AG (Borealis) is fully integrated into Abu Dhabi's hydrocarbon and petrochemical sector through its joint venture with Abu Dhabi National Oil Company, the Abu Dhabi Polymers Company Limited (Borouge). Over the next 12 months, phase III of the Borouge expansion will complete, making it one of the largest Polyolefin sites of its kind in the world. Production capacity, based solely on Borealis' proprietary technology, will increase to 4.5 ml ton.

In 2012 Borealis also completed construction of its catalyst plant in Austria producing advanced catalysts to help meet the demands of both Borealis and Borouge. Borealis' business model of investment in advantaged feedstock regions, coupled with in-house proprietary technology, will ensure Borealis remains a global leader in the sector.

In 2012 Borealis had revenue of $9.70bn, EBITDA of $1.05bn, and net profit of $617.35bn, with a margin of 6.36%. As at 31st December 2012, Borealis' total assets were $9.22bn and net debt stood at $2.04bn. Gearing ratio (net debt/total equity) was 42.62%.

Aabar Investments PJS, the diversified investment company, continues to play a key role in Abu Dhabi's strategy of economic diversification.

Certain key investments, such as investment in commodities and construction, complement the group's broader portfolio.

Improvements in aabar's listed equity portfolio reflected its improved performance in 2012. Liquidity and term financing for aabar as a holding company is important and post 31st December 2012, aabar successfully raised $2.5bn three and five year term financing.

2013 began positively with many of aabar's investee companies achieving notable successes including: Falcon Private Bank Ltd ("Falcon")'s acquisition of Clariden Leu (Europe) LTD, now operating as Falcon Private Wealth Ltd and further strengthening Falcon's position as a leading emerging market-focused wealth management group; completion of the merger between commodities giant Glencore and Xstrata, creating the fourth largest mining company in the world; Galactic Ventures LLC ("Virgin Galactic")'s first powered flight and Arabtec Holding PJSC ("Arabtec"), which secured numerous high profile contracts including for the construction of Abu Dhabi's Louvre.

Established in 1984, IPIC has over 15 investments across five continents. The company has recently been ranked the 15th largest sovereign wealth fund by the SWF Institute, and has enjoyed is 29th consecutive year of profit - each of its years of operation.

IPIC also undertakes certain key domestic oil and gas infrastructure development for the Government of Abu Dhabi. Current projects include the strategically important Abu Dhabi Crude Oil Pipeline, Fujairah Refinery, and Emirate LNG.

IPIC will be hosting a global fixed income and loan market conference call to provide additional insight to the 2012 results.

Details of this call will be made available through an IPIC coordinating bank in the coming days. The call is to be scheduled Monday, 20th May, 2013, 17:00 Abu Dhabi Time.