Mubadala: Performance of investments underpins earnings growth

19/04/2014 06:47 AST

Mubadala, the Abu Dhabi state-owned investment fund with a mandate to develop the emirate’s economy, said its 2013 net profit tripled as soaring stock markets boosted the value of its financial investments.

Mubadala, which has stakes in General Electric and private equity firm Carlyle, said it earned AED1.45 billion ($395 million), up from AED470 million in 2012.

Financial investments swung from a loss of 1.39 billion in 2012 to a profit of 3.36 billion, helping push total comprehensive income to AED5.3 billion from 1.6 billion.

Stock markets in the UAE were among the strongest performers globally in 2013, with Dubai’s bourse more than doubling in value and Abu Dhabi’s index jumping 63 percent.

Mubadala also has holdings in firms including Aldar Properties, telecom operator du and cooling firm Tabreed.

The gains came despite problems with its investment in EBX Group, a troubled Brazilian conglomerate run by billionaire tycoon Eike Batista. Mubadala bought a 5.6 percent stake for $2 billion in March 2012.

While making no direct reference to EBX, Mubadala said it had been repaid AED1.65 billion in a combination of cash and securities as part of a loan restructuring. The rest of the loan, which is backed by guarantees and securities in various entities, would be returned in stages by June 2017.

Unlike other regional sovereign wealth funds such as the Abu Dhabi Investment Authority (ADIA) and Qatar Investment Authority (QIA), Mubadala’s main aim is to help boost the local economy.

The fund has interests in semiconductors, oil and gas, aerospace and real estate among others.

Total assets held by Mubadala grew 11 percent to 223.8 billion dirhams at the end of 2013, which it attributed to a gain from last year’s merger of Emirates Aluminium — of which Mubadala owned 50 percent — with Dubai Aluminium.

Arab News