Mubadala swings to near Dh5bn loss in first half of the year despite higher revenue

Mubadala Development Company said it made a loss of nearly Dh5 billion in the first six months of the year, compared to a profit of about Dh500 million in the first half last year.

The Abu Dhabi government-owned strategic investment company said its revenue was about 5 per cent higher during the period at Dh14.3bn, compared with Dh13.6bn the previous year. But profit for the group – which has investments in semiconductors, aluminium manufacturing, health care and energy, as well as other business segments – were hit by a combination of higher operating costs, lower commodity prices and an impairment charge of about Dh1.5bn for unspecified currency losses across the group.

The total comprehensive loss of Dh5bn includes tax and fair value adjustments. Mubadala said the loss attributable to the owner was Dh4.4bn compared to a profit for last year’s first half of Dh625m.

“The global economic challenges we have faced since the beginning of 2015 persist,” said the Mubadala group chief executive Khaldoon Khalifa Al Mubarak.

Earlier this year, Abu Dhabi’s leadership announced that Mubadala Development will merge with International Petroleum Investment Company, which also has seen a downturn in some of its broad portfolio of investments.

“Combining the two companies will create one of the largest state-owned investment funds globally, which will be dedicated to Abu Dhabi’s economic diversification and have the scale to accelerate new and existing global industrial champions,” said Mr Al Mubarak.

One of the highlights of the first half was increased revenue from the health care sector.

The company said its Healthpoint Hospital unit opened a new medical centre for the treatment of obesity and metabolic disorders. Also, the Cleveland Clinic Abu Dhabi, which opened last year, completed more than 4,500 surgeries and procedures in the first half of this year.

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