Mature asset divestments boost Mubadala revenue to Dh165.6b more on gulfnews.com
PETROCHEMICAL, ALUMINIUM MANUFACTURING ASSETS DRIVE OPERATING INCOME TO DH10.7B
Mubadala Investment Company yesterday reported a total comprehensive income of Dh10.3 billion in 2017, double that of the income in 2016.
The company made gains from divestments of mature assets and the increase in value of financial holdings.
Mubadala also reported operating income of Dh10.7 billion last year compared to Dh9.6 billion in 2016 with petrochemical and aluminium manufacturing assets being the major growth drivers, Mubadala Investment Company said in a statement.
The revenue of the Abu Dhabi-based firm reached Dh165.6 billion in 2017, up from Dh145.4 billion in 2016 with major contributions coming from upstream, petrochemicals and the semiconductor business.
“2017 was a landmark year for our new organisation. All four global platforms contributed to our strong financial and operational results,” stated Khaldoon Khalifa Al Mubarak, Group CEO and Managing Director.
“The scale of 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.”
While the company did not release its net profit numbers, a spokesman, as reported by Reuters, said its net profit attributable to shareholders last year was Dh4.9 billion, same as in 2016.
Alternative investments
Total assets of Mubadala Investment Company, established after the merger of Mubadala Development Company and International Petroleum Investment Company (Ipic), were Dh469.4 billion at the end of 2017 compared to Dh449.7 billion at the end of 2016.
The results do not include Abu Dhabi Investment Council (Adic) financials which joined the investment firm last month.
But Mubadala’s assets have grown to about $200 billion (Dh734 billion) since the two
The scale of 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 longterm growth potential and alignment with Abu Dhabi’s strategic priorities” Khaldoon Khalifa Al Mubarak (top right) | Group chief executive officer and managing director
firms merged. In 2017, Mubadala completed the sale of a 40 per cent stake in Tabreed, its district cooling business, to Engie, a global energy leader for Dh2.8 billion. Mubadala remains the largest shareholder of the Abu Dhabi based district cooling utility company. In alternative investments and infrastructure segment, Mubadala made Dh55.1 billion ($15 billion) commitment to the $100 billion SoftBank Vision Fund, the world’s largest dedicated technology investment vehicle.
It also opened its first US office in San Francisco, to support its Venture Capital business which will oversee early growth investments and manage the SoftBank Vision Fund investments.
Mubadala sold 85 million shares worth Dh4.18 billion ($1.139 billion) in Advanced Micro Devices (AMD). Mubadala retained a 12.9 per cent stake in AMD and remains the largest shareholder.
“In 2017 we made significant progress by reducing overall leverage while maintaining appropriate liquidity to deploy capital in new investments. In addition, we took the opportunity to monetise some of our mature assets ... in line with our mandate to deliver financial returns to our shareholder,” said Carlos Obeid, company’s chief financial officer.