Abu Dhabi Fund Mubadala Swings Back Into Profit In 2012

Mubadala, the Abu Dhabi investment fund with a mandate to boost the emirate’s local economy, swung to a net profit in 2012, helped by improved margins at some of its core businesses and lower impairments, it said on Thursday.

The fund made a profit of Dhs455 million ($124 million) in 2012, compared with a loss of Dhs3.2 billion in 2011, when it booked heavy impairments on its financial portfolio.

The fund, which has a local joint venture with General Electric and interests in the semiconductor, oil and gas, aerospace and real estate sectors in the region, increased its revenue by 12 per cent last year to Dhs31.3 billion, boosted, it said, by higher semiconductor sales and land sales.

Losses from financial investments fell to Dhs1.43 billion last year after a loss of Dhs3.03 billion in 2011, while impairments on the fund’s property portfolio dropped to Dhs585.7 million from Dhs653 million.

Earlier this month, the fund also signed a $2 billion loan refinancing with banks to replace a $2.5 billion loan agreed in 2010.

“Our 2012 financial performance is a reflection of how we manage our portfolio, with certain key assets and projects reaching further maturity and improved market conditions positively impacting the value of many of our financial investments,” said CEO Khaldoon al Mubarak.

Mubadala’s total assets stood at Dhs202.8 billion ($55.22 billion) at the end of the 2012, up from Dhs177.1 billion a year ago.

Mubadala, one of few state-controlled vehicles to publish results, also owns stakes in listed local companies such as Tabreed and indebted developer Aldar Properties which received shareholder approval for a merger with rival Sorouh Real Estate in March.