Abu Dhabi’s International Petroleum Investment Company (Ipic) has reported a group loss of $2.7bn for 2015.

The net profit before non-cash impairment was $3.3bn, with revenues of $3.9bn.

The significant fall in hydrocarbon and petroleum product prices since 2014 has cut into Ipic’s profits, which fell 30 per cent to $1.5bn in 2014.

Ipic’s assets fell from $58bn to $66bn due to the impairments and the derecognition of the Abu Dhabi crude oil pipeline.

The group’s debt was reduced by $2.5bn to $27.5bn, but the net debt over equity plus net debt ratio rose slightly to 63 per cent.

“Ipic remains in strong position due to an investment portfolio that is diversified throughout the hydrocarbon value chain, as well as prudent financial management in the wake the current adverse business climate,” said Suhail Mohamed al-Mazrouei, UAE Minister of Energy and managing director of Ipic. “The group has spent the past year strengthening our senior leadership team and is now prioritising greater due diligence and corporate governance in our activities to further enhance our internal controls.”

Ipic is currently pursuing a $6.5bn arbitration against Malaysian sovereign wealth fund 1MDB over missing payments. Two former senior Ipic officials had their accounts frozen in the UAE in April 2016.

Billions of dollars of payments were allegedly misdirected to companies in the Cayman Islands with similar names to Ipic subsidiaries.

Abu Dhabi now plans to merge Ipic with a second Abu Dhabi sovereign wealth fund, Mubadala Development Company.

“Looking ahead, Ipic will prioritise the continued diversification of our energy portfolio – particularly our downstream, refining and petrochemical business units – to mitigate risk in the current industry environment,” said Al-Mazrouei.