Abu Dhabi state fund Mubadala swings to profit, assets grow

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Abu Dhabi’s state fund Mubadala Investment Company made a net profit of 4.2 billion dirhams ($1.14 billion) in the first half of the year, it reported on Thursday, its first set of results since merging with the other state wealth fund, International Petroleum Investment Company (IPIC).

Mubadala made a net loss of 4.7 billion dirhams in the first half of 2016, it said in a statement.

Total assets rose to 465.5 billion dirhams at the end of June, from 449.7 billion dirhams a year ago.

The merged fund, whose investments include stakes in General Electric and private equity firm Carlyle Group, also reported “total comprehensive income” of 6.8 billion dirhams in the first half of 2017 compared with a “total comprehensive loss” of 5.4 billion dirhams in the same period last year.

Separating the results for the two funds, Mubadala Development Company made a first-half net attributable profit of 578.4 million dirhams versus a loss of 4.43 billion dirhams a year ago, while IPIC made a net attributable profit of 2.67 billion dirhams, having lost 946.2 million dirhams in the first half of last year.

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“In the first half of 2017, we worked to integrate the two portfolios under the Mubadala Investment Company,” said Chief Financial Officer, Carlos Obeid in a statement.

“We managed our costs prudently, while monetizing mature assets and growing our profit as we reduced our overall leverage.”

Overseas investment

Mubadala said little about the outlook or its investment plans in its statement, but its CEO Khaldoon al-Mubarak said earlier this year the firm was lining up new overseas investments in 2017 and might also sell or reduce some of its existing stakes in companies.

Mubadala’s revenues in the first half totaled 83.4 billion dirhams versus 72.9 billion dirhams in the year-ago period, helped by higher revenues from its oil and gas, semiconductors and aerospace interests, the statement said.

The company also made gains from financial investments and favorablecurrency, it added.

In August Mubadala sold a 3.9 percent stake in Advanced Micro Devices in its second sale of shares in the US-based semiconductor company this year. The sale value was $529.6 million based on AMD’s closing share price.