Mubadala’s credit ratings are among the highest in the corporate world, as assessed by leading ratings agencies. Silvia Razgova / The National
Frank Kane Sep 18, 2014
Mubadala Development, the strategic investment vehicle owned by the Abu Dhabi Government, said revenue and operating income rose in the first half of the year, mainly because of higher sales and income from its aerospace, energy and aluminium businesses.
Revenue rose to Dh16 billion from Dh14.8bn a year ago, while operating income leapt to Dh2.3bn from Dh721m last year.
Total comprehensive income was Dh1.3bn in the six months ended June 30, compared with Dh2.1bn last year, mainly due to the fact that Mudabala’s financial investment portfolio could not match the buoyant market conditions of early 2013.
The profit for the period attributable to the owner of the group rose to Dh1.34bn from Dh1.09bn.
“The company managed strong operational performance in the first half of this year,” said Khaldoon Al Mubarak, the chief executive and managing director. “We achieved key milestones while continuing to invest at home and internationally, as the global economy stabilised in key markets.”
The interim financial statement also revealed that Mubadala had concluded a “significant non-cash transaction” in the period through its deal to secure a 32.5 per cent stake in the Brazilian iron ore port of Porto Sudeste.
The transaction, valued at Dh1.42bn, represents part of a loan to EBX, the company formerly owned by Eike Batista, and came in the form of a transfer of preferred equity shares to Mubadala.
Along with assets already received as part of last year’s restructuring deal with Brazilian representatives of EBX, Mubadala is believed to have received back about Dh3bn of its total estimated loan of about Dh7.3bn.
Under the terms of the restructuring, Mubadala is due to have the full amount repaid by 2017. An executive at the company declined to comment on the Brazilian situation, but pointed to the fact that EBX had recently received $800m in cash from the sale of a 49 per cent stake in its Colombian gold business to the Qatar Investment Authority.
EBX also has other assets remaining of Mr Batista’s beleaguered business, in property, entertainment and logistics.
In other areas of Mubadala’s portfolio:
• Emirates Global Aluminium was formally incorporated as a standalone business, making it one of the world’s largest producers of the metal, in line with Mubadala’s mandate to create industry leaders in strategic UAE sectors.
• Strata, the composite aerostructures manufacturer based in Al Ain, became a tier-one supplier to Boeing following the first shipment of UAE-made composite ribs for its 777 aircraft.
• Healthpoint, a multi-speciality primary care hospital, opened in Abu Dhabi with in-patient facilities and completed its first surgery.
• Construction of the Cleveland Clinic on Al Maryah Island in the capital was completed with an opening scheduled next year.
• GlobalFoundries, the semi-conductor manufacturer, entered into a strategic collaboration with Samsung to produce the next generation of chips for mobile phones and computers.
• The company said its petroleum division had discovered significant gas resources in Malaysia. It now has a cluster of four discoveries in its block and is considering options on how to commercialise and develop them. It also successfully installed a production platform and other facilities in the Manora oilfield in Thailand and began drilling two production wells.
• In Masdar City, Mubadala’s sustainable urban development, the Ecomagination Centre was inaugurated with the US engineering group GE, Mubadala’s long-term partner, and operations began at a new aviation component repair facility in Kuala Lumpur.
• Yahsat, the region’s first multipurpose satellite communications business, announced plans to launch a third satellite by 2016, extending high-speed broadband connection to 17 countries.
On the financial side, total assets were Dh223.3bn at the end of the half, compared with Dh223.8bn in December 2013. Total equity increased to Dh159bn compared with Dh157.5bn last year.
Total liabilities were Dh64.3bn, compared to Dh66.3bn at the end of 2013, mainly reflecting the repayment of bonds and successful issue of new debt, extending Mubadala’s debt profile.
The net gearing ratio increased from 12 per cent at last year’s end to 12.7 per cent at the end of the six months.
Mubadala’s credit ratings are among the highest in the corporate world, as assessed by leading ratings agencies.
fkane@thenational.ae