Shams solar project of Mubadala.
Mubadala swings to profit on lower impairments
Abu Dhabi, April 11, 2013
Mubadala, the Abu Dhabi investment fund with a mandate to boost the emirate's local economy, swung to a net profit in 2012, helped by improved margins at some of its core businesses and lower impairments.
Mubadala, which has stakes in General Electric and private equity firm Carlyle, made a profit of 455 million dirhams ($123.88 million) for 2012, compared with a loss of 3.2 billion dirhams in 2011 when it booked heavy impairments on its financial portfolio.
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 consensus since the wake of the Arab spring.
The fund has interests in semiconductors, oil and gas, aerospace and real estate among others.
Revenue for the year increased 12 percent to 31.3 billion dirhams from 27.9 billion dirhams in 2011, Mubadala said in a statement on Thursday. It attributed the rise in revenues to higher sale of semiconductors and revenue from land sales.
Losses from financial investments fell to 1.43 billion dirhams in 2012, compared with a loss of 3.03 billion dirhams in 2011, Mubadala said.
Impairment losses on the fund's property portfolio dropped to 585.7 million dirhams from 653 million dirhams for 2011.
Mubadala, one of few state-controlled vehicles to publish results, also owns stakes in local companies such as Tabreed and indebted developer Aldar Properties which received shareholder approval for a merger with rival Sorouh Real Estate in March. - Reuters