Abu Dhabi's Mubadala said on Thursday it swung to a substantial loss in the first half of 2016 as the state-owned investment fund was hit by lower commodity prices and weaker income from financial investments.

Mubadala, which is merging with fellow state fund International Petroleum Investment Co, made a loss attributable to equity owners of Dh4.43 billion ($1.21 billion) in the first six months of 2016 compared with a profit of Dh625.5 million a year earlier.

Revenues were Dh14.3 billion compared to Dh13.6 billion in H1 2015, driven mainly by the stronger contribution of our healthcare sector and semiconductor business.

Operating loss was Dh2.3 billion compared to a gain of Dh803 million in H1 2015, primarily due to a combination of lower commodity prices and higher depreciation.

Total comprehensive income, which comprises all forms of income, also swung to a loss of Dh4.96 billion from positive income of Dh477.7 million in the first half of last year.

Mubadala Group CFO Carlos Obeid said: “The strength of our credit rating and the high subscription to our May 2016 $500 million 7-year bond issuance reflects the solid reputation of Mubadala in the financial marketplace and key industries.  We continue to manage our cash, monetize mature assets, control operating costs and pursue select investment opportunities as we navigate macroeconomic challenges.”  – TradeArabia News Service & Reuters