Complex Made Simple

Abu Dhabi’s Mubadala posts 12.4 per cent rise in 2015 profit

Revenues rose to AED34.05 billion from AED32.6bn in the same period

Mubadala, the Abu-Dhabi-government-owned investment fund, said on Thursday (March 31) that its 2015 profit rose 12.4 per cent on the back of high income from investments in healthcare, real estate and infrastructure activities.

The net profit attributable to the owner of the fund rose to AED1.2 billion last year, compared with AED1bn in 2014, the company said.

Revenues rose to AED34.05bn from AED32.6bn in the same period while total assets increased to AED246.3bn versus AED243.6bn during the period in 2014.

Total comprehensive income, which comprises all forms of income, fell to a loss of AED1.3bn in 2015, against a loss of AED0.2bn in 2014.

“Mubadala managed through the significant macroeconomic volatility of 2015 to mark moderate increases in revenue and profit,” said Khaldoon Khalifa Al Mubarak, Group CEO and Managing Director of the company.

Al Mubarak said the company remains “resolutely focused on prudent cash management and cost control, as well as active oversight of our assets, in order for us to navigate the anticipated challenging market conditions of 2016 and beyond.”

Mubadala opened Cleveland Clinic Abu Dhabi, in partnership with the Cleveland Clinic Foundation of the US, in March last year.

The fund, along with China Development Bank Capital and China’s State Administration of Foreign Exchange, launched a $10bn global investment fund, which will target investments in China and the UAE across multiple sectors and asset classes.

It also formed a joint venture to invest in the metals and mining sector with commodities trader Trafigura. Subsidiary Globalfoundries completed its acquisition of IBM’s microelectronics business.

“Good operational results across all our global business platforms coupled with our stable financial performance in a challenging and volatile market underlines the benefits of Mubadala’s diversified portfolio,” remarked Mubadala Group CFO Carlos Obeid.

“We continue to closely manage our portfolio, pursue monetisation opportunities for our mature assets and make targeted investments that advance our four business platforms,” Obeid added.

Mubadala added that it had received instructions from its shareholders to convert interest-free loans worth AED18.37bn, which were previously provided to it, into equity.