Mubadala’s H1 Profit Up 10.4% On Investment Gains

Mubadala, the Abu Dhabi investment fund with a mandate to develop the emirate’s local economy, on Thursday posted a 10.4 per cent rise in first-half profit boosted mainly by income from financial investments.

Mubadala, which has stakes in General Electric and private equity firm Carlyle, said profit attributable to equity owners for the first half of the year was Dhs1.1 billion ($299.5 million), compared with Dhs984.7 million in the corresponding period last year.

Unlike other regional sovereign wealth funds like Abu Dhabi Investment Authority (ADIA) or Qatar Investment Authority (QIA), Mubadala’s main goal is to engage in investments which enhance development of the local economy, a theme which has gained greater prominence in the wake of the Arab spring.

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

Net income from financial investments in the period was Dhs1.3 billion, Mubadala said. That compared with a loss of Dhs771.6 million in the opening six months of 2012.

Mubadala’s operating income dropped sharply to Dhs614 million in the first half, compared with Dhs2.3 billion in the year-ago period due to an increase in investment-related spending, particularly research and development, it said.

First-half revenues dropped to Dhs14.8 billion versus Dhs16.1 billion in the same months of 2012. The company attributed this to the one-time exceptional revenue increase recorded last year from semiconductor manufacturing and because of lower hydrocarbon revenues.

Unlisted Mubadala’s total assets grew slightly to Dhs204 billion as at June 30, 2013 from Dhs202.2 billion at the end of December 2012.

Mubadala, one of the few state-controlled vehicles to publish results, also owns stakes in local companies such as district cooling firm Tabreed and real estate developer Aldar Properties.