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MAJOR REVENUE BOOST

Mubadala 2016 profit grows twofold to $898m

ABU DHABI, March 30, 2017

Mubadala, the Abu Dhabi-based investment and development company, said its net profit for 2016 more than doubled to Dh3.3 billion ($898 million) from Dh1.2 billion ($326 million) the previous year, mainly driven by revenue growth from its diversified portfolio.

Announcing the full-year 2016 audited financial results today (March 30), the Abu Dhabi group said its revenues too witnessed a surge hitting Dh31.5 billion ($8.57 billion) compared to Dh29.7 billion in 2015, primarily boosted by the growth from companies within Mubadala’s semiconductor, aerospace and healthcare portfolios.

The operating Income had a marginal increase from Dh2 billion in 2015 to Dh2.6 billion, driven in part by strategic divestments from mature assets.

Mubadala's total comprehensive income hit Dh4.1 billion compared to Dh1.3 billion loss the year before  primarily due to higher income from financial investments.

The total assets were Dh248.3 billion at the end of 2016 compared to Dh246.4 billion the previous year, it stated.

These results reflect the last operational year for Mubadala Development Company before it evolves, in May into Mubadala Investment Company, it added.

The merger of Mubadala Development Company with the International Petroleum Investment Company (IPIC) is proceeding to schedule, and the new entity, Mubadala Investment Company, is due to commence operations in May 2017.

The new entity, which will have an asset base of $125 billion, is set to operate across four investment platforms: Petroleum & Petrochemicals; Technology, Manufacturing & Mining; Aerospace, Renewables, Information & Communications Technology; and Alternative Investments & Infrastructure.

Commenting on its solid results, Group CEO and managing director Khaldoon Khalifa Al Mubarak said: "Our strong financial performance in 2016 reflected our diversified portfolio, with results from opportunistic investments in strategic sectors and prudent monetization of mature assets."

"In line with our long-term strategy, we continue to develop and grow world-class companies in key sectors, contributing to the UAE’s economic diversification. We are well positioned to build on the legacies of both Mubadala Development Company and IPIC as we look ahead to operating as a newly merged entity in May of 2017," he added.

Group chief financial officer Carlos Obeid said: "As planned, we prudently managed our portfolio in 2016 to reduce our leverage, maintain a strong cash position and monetize assets at the right time."

"The result will be a strong balance sheet as we look ahead to starting operations in May as Mubadala Investment Company," he added.

Established and owned by the government of Abu Dhabi, the company brings together and manages a multi-billion dollar portfolio of local, regional and international investments and partners with leading global organizations to operate businesses across a wide range of industry sectors.

These include aerospace, semiconductors, metals & mining, oil & gas, renewables, information & communications technology, healthcare, real estate & infrastructure, utilities, and defence services.-TradeArabia News Service




Tags: abu dhabi | Mubadala | development | growth |

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