Abu Dhabi state fund Mubadala’s 2017 operating profit rises 11.5%

Abu Dhabi’s state investor Mubadala Investment Co on Sunday reported an 11.5 percent rise in operating income in 2017, but its net income remained flat.

Last year its four business sectors saw revenues rise, financial investments appreciated in value and Mubadala gained from divestments, the company said in a statement.

Its business sectors include aerospace, renewables and information communication technology (ICT); alternative investments and infrastructure; petroleum and petrochemicals and technology, manufacturing and mining.

“Our integrated portfolio enabled us to increase investments in existing companies and monetise mature assets, while entering new sectors in key international markets where we see long-term growth potential and alignment with Abu Dhabi’s strategic priorities,” said Khaldoon al Mubarak, group chief executive and managing director.

Mubadala reported an operating income of Dhs10.7bn ($2.9bn), up from Dhs9.6bn in 2016, it said in a statement.

Mubadala did not provide full details, but a spokesman told Reuters its net profit attributable to shareholders in 2017 was Dhs4.9bn, the same as in the previous year.

The company, formed through the merger of Mubadala Development Company and International Petroleum Investment Co in 2017, said total assets rose to Dhs469.4bn at the end of 2017, up from Dhs449.7bn at the end of 2016.

It reported total comprehensive income of Dhs10.3bn, compared to Dhs5.1bn in 2016.

Mubadala’s assets have grown to about $200bn after Abu Dhabi Investment Council joined the investment firm in March as part of a consolidation of hundreds of billions of dollars worth of state funds.

Read: Abu Dhabi to combine sovereign funds creating $250bn behemoth

Revenues totalled Dhs165.6bn in 2017 versus Dhs145.4bn in the previous year helped largely by the company’s upstream, petrochemicals and semi conductor business.

Unlisted Mubadala, which has stakes in General Electric and private equity firm Carlyle Group, said in March it is considering a partial or total sale of Spanish oil and gas company Cepsa and use the proceeds for expansion.

Mubadala halted talks to buy Dubai-based Abraaj’s investment business after holding initial talks last month, sources told Reuters.

Read: Abu Dhabi’s Mubadala halts Abraaj investment deal talks