Mubadala Reports $1.1bn Net Loss

The Abu Dhabi-based investment company attributed the loss to negative fluctuations in its financial investments.

Abu Dhabi-based investment company Mubadala announced that net losses for 2011 increased to Dhs4.2 billion ($1.1 billion), compared to Dhs338 million losses in 2010.

“This was primarily driven by negative fluctuations in the fair market value of Mubadala’s financial investments, as well as a reduction in the market value of certain real estate holdings, both impacted by market volatility,” the company said in a statement.

However, Mubadala said that revenues during the period rose 77 per cent to Dhs27.9 billion, up from Dhs15.8 billion in 2010, mainly due to the consolidation of the Advanced Technology Investment Company (ATIC).

“Revenue growth was also driven by sustained, high energy prices throughout 2011, the ongoing growth of Mubadala’s aerospace sector; and the consolidation of Tabreed, the publicly-owned district cooling company,” it said.

The company’s total assets increased by 73 per cent to Dhs177 billion in 2011, while operating income stood at Dhs1.2 billion in 2011, down from Dhs2.6 billion in 2010.

“While our financial investments’ performance were impacted by the volatility in the global marketplace during 2011, we continue to maintain a long-term financial investment perspective,” Khaldoon Khalifa Al Mubarak, Mubadala’s CEO and managing director said in the statement.

Mubadala, which has stakes in General Electric and private equity firm Carlyle, said last month that it will buy a $2 billion stake in Brazil’s EBX Group. The investment in EBX is the biggest ever in Latin America by the company.