Abu Dhabi-owned Mubadala triples profit in 2013 to Dh1.5 billion

Among Mubadala’s investments is Healthpoint, a fully integrated, primary care and multi-specialty hospital at Zayed Sports City in Abu Dhabi. Fatima Al Marzooqi / The National

Mubadala Development's profit more than tripled last year as the performance of the company's investments benefited from improvements in financial markets and the global economy.

The Abu Dhabi Government-owned strategic investment company posted a profit attributable to the owner of the group of Dh1.5 billion, compared with Dh470 million the year before, Mubadala said yesterday.

It represents a second consecutive annual profit for the company after it rebounded from a loss in 2011.

“2013 was a strong year of financial returns and major project delivery for Mubadala,” said Khaldoon Al Mubarak, Mubadala’s chief executive and managing director. “Growth of our diversified global financial portfolio was complemented by significant accomplishments in the emirate, including the creation of a new global industrial champion in Emirates Global Aluminium and progress across other industry sectors. We also increased our international investments and formed new partnerships that will drive growth on our global platforms and increase our presence in key markets.”

Total comprehensive income rose to Dh5.3bn, up from Dh1.6bn in the year earlier, with the company citing higher income from financial investments and an increase in the value of its assets. Operating income dipped to Dh2bn compared to Dh3.7bn the year before because the cost of sale of goods and services went up.

The financial statement also provided more details of the change in terms of Mubadala’s Dh7.3bn loan to EBX Group as part of an investment the previous year in the conglomerate owned by the beleaguered tycoon Eike Batista.

An unnamed third party repaid Dh1.6bn in the form of cash and securities, with the remainder to be repaid “progressively” until June 30, 2017, according to the financial statement. A person familiar with the matter confirmed the information related to EBX, saying the new terms offered better repayment protection to Mubadala.

In February, Mubadala and Trafigura Group, the world’s second-largest metal trader, signed a US$955m deal to acquire a 65 per cent stake in a Brazilian iron ore port owned by MMX Mineração e Metálicos, a company previously owned by Mr Batista.

Boosting returns on Abu Dhabi’s oil income is one part of the dual mandate of Mubadala, which was created in 2002. The other is spearheading the expansion and diversification of the emirate’s economy.

Last year was an eventful one for Mubadala at home. It oversaw the merger of Emirates Aluminium and Dubai Aluminium, the country's two smelters.

The move, which was finalised earlier this month, makes Mubadala an equal shareholder in the new entity, Emirates Global Aluminium, which will create an extra 2,000 jobs by 2020. The deal helped to grow Mubadala’s asset portfolio to Dh223.8bn at the end of the year, up from Dh202bn in the year earlier.

Another highlight was the securing in November of Dh22bn in aerostructures and engine parts manufacturing deals with companies including Airbus, Boeing, GE and Rolls-Royce. The work, to be completed by Mubadala’s Strata Manufacturing unit, represents a boost to the emirate’s plan to become a major link in the global aerospace manufacturing supply chain.

Mubadala also oversaw the launch of Shams 1, the first concentrated solar power plant in the region, as well as YahClick, Yahsat’s sophisticated satellite broadband service.

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