Abu Dhabi: Mubadala Development Company (Mubadala) on Thursday reported Dh625.5 million in net profits in the first half of 2015, marking a 53.4 per cent drop from the Dh1.3 billion reported in the same period in 2014 as increased income from investments was offset by higher costs.
Meanwhile, revenues were almost flat, with Dh15.9 billion recorded in the first half of the year compared to the Dh16 billion in the same period last year, the Abu Dhabi state-owned investment fund said in a statement.
The plunge in net profits stems from lower commodity prices, with Mubadala recording Dh2.6 billion in energy revenue in H1 2015 — down from the Dh3.1 billion recorded in H1 2014.
Aerospace and Engineering revenues were also down, reaching Dh3.9 billion in the first half of this year, marking a 9.7 per cent fall from the Dh4.3 billion in H1 2014.
“Despite challenging market conditions such as volatile commodity prices impacting certain businesses in our portfolio, the diversity of our asset base and prudent management enabled us to record positive results. As the economic situation remains unclear, we continue to carefully manage our operations and balance sheet,” Carlos Obeid, Mubadala Group’s chief financial officer, said in a statement.
The company’s total comprehensive income, which comprises all forms of income, slid roughly 63 per cent to reach Dh477.7 million in H1 2015 compared to Dh1.3 billion recorded in H1 2014.
Revenues from Mubadala’s technology business were up, however, to Dh8.5 billion in the period, compared to Dh7.8 billion in same time last year. Real estate revenues were also up to Dh357.5 million from Dh301 million in H1 2014, as were health care revenues, which reached Dh564.2 million compared to Dh426 million in the period.
With Cleveland Clinic only becoming fully operational in May, its revenues are yet to be recorded, but Healthpoint Hospital’s revenues were reflected in the health care figures.
The company said in a statement that its asset diversity across many business sectors helped it maintain a positive net profit.
“Global economic conditions reinforce more than ever the importance of Mubadala’s long-term investment strategy and diversified portfolio. We continue to focus on developing leading, globally-integrated industry sectors in the UAE that support sustainable growth,” stated Khaldoon Al Mubarak, Mubadala’s group chief executive officer and managing director.
Total assets stood at Dh241.7 billion on June 30, marking a drop from the Dh243.6 billion recorded at the end of 2014.
During the first half of the year, Mubadala Petroleum commenced production at its third operated oilfield in Thailand. Reserves contained in the oilfield’s primary reservoirs are estimated to be around 12.4 million barrels.
In April this year, Mubadala reported Dh1 billion in net profits for 2014, marking a 28.7 per cent drop from the Dh1.45 billion in profits reported in 2013 on the back of falling oil prices and a fall in investments income.
