Abu Dhabi strategic investment firm Mubadala reports 28% profit fall but revenues up

Mubadala Development, a strategic investment company owned by the Abu Dhabi government, reported a decline in 2014 profits caused by oil and gas impairments and a fall in investment income.

Profit fell by about 28.7 per cent despite a rise in overall revenues.

Net income fell to Dh1.03 billion, from Dh1.45 billion a year earlier.

The company said that revenue for the whole group rose by about 5 per cent to Dh32.66bn.

The biggest hit to the bottom line came from the group’s Mubadala Petroleum division, which took an asset impairment charge of Dh1.88bn, writing down the value of oil and gas assets in the Middle East and South East Asia because of the decline in oil prices and the gloomy outlook for recovery.

Mubadala reported income on its investment portfolio of Dh1.28bn for last year, down from Dh3.6bn the year before.

Mubadala does not disclose full details of its investment portfolio but it includes major shareholdings in GE, Advanced Micro Devices and the Carlyle Group, a private equity firm.

One of the best performing businesses was technology and industry, which includes Global Foundries semiconductors and Emirates Global Aluminium business, which was formed with the merger of Dubal and Emal.

“Mubadala’s 2014 financial results reflect a resilient operating performance,” said Khaldoon Khalifa Al Mubarak, group chief executive. “Our delivery of major priorities – including Cleveland Clinic Abu Dhabi, Emirates Global Aluminium, and Al Maryah Island, the home of Abu Dhabi Global Market – furthers the emirate’s economic vision of greater diversification and opportunity.”

Mubadala’s total assets rose at the end of last year to Dh243.6bn from Dh223.8bn at the end of 2013.

Mubadala is not the only state-owned company to suffer from the near 50 per cent decline in the price of oil since last June.

Abu Dhabi National Energy Company, known as Taqa, this week reported widening losses of Dh3bn last year. Taqa will cut spending sharply and suspend dividend payments in response to the declining value of its oil and gas assets.



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