Higher fair value of assets doubles Mubadala income

Abu Dhabi-owned Mubadala Development Company reported its total comprehensive income doubling to Dh2.1 billion in the first six months of the year as the fair value of its financial investments and other assets improved.

The government-owned investment company earned Dh1.1 billion in the first half of 2012.

The company, which has diverse business interests from owning largest global stakes in the semiconductors manufacturing, to aluminium smelters in the country, running pan-GCC natural gas pipeline, operating satellites, and owning oil and gas concessions along with expanding interests in aerospace manufacturing reported revenues plunging 8.1 per cent to Dh14.8 billion in the period.

The decline in sales from last year’s tally of Dh16 billion was a result of the “one-time exceptional revenue increase recorded in 2012 related to semiconductor manufacturing and to lower hydrocarbon revenues,’’ the government-owned company said.

However, significant revenue increases were seen in Mubadala’s satellite communications business, Yahsat, in comparison to first half 2012. Mubadala’s operating income plunged to Dh614 million in the period from Dh2.3 billion in the same period previous year due to ‘’an increase in investment-related spending across the group, in particular accelerated research and development’.

However, total assets grew slightly to Dh204 billion at the end of June 2013 compared to 202.2 billion as at the end of 2012.

Mubadala in its first half saw the achievements of many milestones including the inauguration of the Shams 1 concentrated solar power plant in the Abu Dhabi’s Western Region, which generates 100MW of electricity.

The company in a joint venture with Dubai’s Dubal set up a new holding company, Emirates Global Aluminium, which will take the aluminium business globally by mining bauxite, producing carbon in China and setting up a refining unit.

Emal’s finalising of its landmark project financing of Phase II and the installation of the final steel structure for the 1.7km potline of its Phase II expansion, completing all major civil and engineering work on the world’s longest single aluminium potline.

The opening of the Rosewood Abu Dhabi, the first five-star hotel on Al Maryah Island in Abu Dhabi. In a strategic move, Mubadala setup a $2 billion co-investment fund with the Russian Direct Investment Fund, in order to pursue new investment opportunities in Russia.

Yahsat launched its satellite broadband offering in the UAE (Yahclick), wireless internet services.

The initial opening of Healthpoint, Abu Dhabi’s primary care and multi-specialty hospital located at Zayed Sports City. Mubadala CEO and Managing Director, Khaldoon Khalifa Al Mubarak, said, his company reached key milestones within its portfolio particularly in the metals, satellite and renewable energy sectors, in line with business plan.

“We continued to grow our global platforms and made new investments into promising international markets. We remain firmly focused on helping to develop a diversified, globally integrated and innovation-driven economy for Abu Dhabi with strong career opportunities for its citizens,” the managing director said.

Mubadala’s credit ratings were recently reaffirmed among the top corporate ratings globally at Aa3/AA/AA by Moody’s, S&P and Fitch, respectively.