Mubadala's H1 revenues surge to Dh14.3b
Mubadala Development Company, the Abu Dhabi government owned investment and development company, said on Thursday that its group-wide revenues surged to Dh14.3 billion in the first half of 2016 from Dh13.6 billion in the same 2015 period.
The company said the growth was primarily driven by stronger contributions from the healthcare sector and semiconductor business. However, profits were down compared to the first half of 2015, in part due to lower commodity prices and decreased gains from financial investments, Mubadala said in a statement.
Mubadala Group chief executive officer and managing director, Khaldoon Khalifa Al Mubarak, said the global economic challenges being faced since the beginning of 2015 persisted. "That said, we continue to develop priority sectors and industry champions, in line with Abu Dhabi's long-term vision."
On June 29, 2016, His Highness Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces, Chairman of the Abu Dhabi Executive Council and Chairman of Mubadala, announced the intended merger of Mubadala with the International Petroleum Investment Company.
"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 Al Mubarak, who is vice-chairman of the joint merger committee. Shaikh Mansour bin Zayed, Deputy Prime Minister, Minister of Presidential Affairs and Chairman of IPIC heads the joint committee.
For the first half 2016, Mubadala said it posted an operating loss of Dh2.3 billion compared to a gain of Dh80 million in same 2015 period, primarily due to a combination of lower commodity prices and higher depreciation.
Loss attributable to the owner of the group was Dh4.4 billion compared to a net gain of Dh625 million in 2015 first half, while total comprehensive loss was Dh4.9 billion compared to total comprehensive income of Dh477 million in 2015 first half, primarily due to lower commodity prices, decreased gains from financial investments, higher depreciation and impairments.
Mubadala's total assets shrank to Dh233 billion as of June 30, 2016 from Dh246 billion as of the end of 2015, driven mainly by the repayment of corporate debt and depreciation. Total equity was Dh169 billion as of June 30, 2016 compared to Dh174 billion as of December 31, 2015.
Total liabilities and leverage were Dh64 billion as of June 30, 2016 compared to Dh72 billion as of December 31, 2015 due to the repayment of interest bearing borrowings. Mubadala's credit ratings remained among the top corporate ratings globally at Aa2/AA/AA by Moody's, Standard & Poor's and Fitch, respectively.
"The strength of our credit rating and the high subscription to our May 2016 $500 million seven-year bond issuance reflects the solid reputation of Mubadala in the financial marketplace and key industries. We continue to manage our cash, monetise mature assets, control operating costs and pursue select investment opportunities as we navigate macroeconomic challenges," said Mubadala Group CFO, Carlos Obeid.