Mubadala Development Company, the Abu Dhabi-owned sovereign wealth fund, on Thursday posted a 23 per cent profit jump for the first half of the year. The company tasked with developing the emirate’s economy posted a Dh1.34 billion ($364.8 million) profit attributable to equity owners compared to the Dh1.09 billion profit it accrued in the same period a year ago.
Mubadala’s 23 per cent profit jump is off the back of higher revenues from joint ventures such as Emirates Global Aluminium and Dolphin Energy. Income from the joint venture business doubled to Dh2.12 billion in the six months ending June 30.
The first half of the year saw Emirates Global Aluminium formally incorporated as a stand-alone business, making it one of the world’s largest aluminium producers, following the merger of Abu Dhabi’s Emirates Aluminium (Emal) and Dubai’s Dubai Aluminium (Dubal).
“The company managed strong operational performance in the first half of this year. We achieved key milestones while continuing to invest at home and internationally, as the global economy stabilised in key markets,” Khaldoon Khalifa Al Mubarak, Mubadala Group CEO and Managing Director, said in a statement.
Overall revenues increased to Dh16 billion compared to Dh14.8 billion in the first half last year, which Mubadala said, was due to higher sales in its aerospace and energy businesses.
Strata, Mubadala’s unprofitable aeroplane parts manufacturer in Al Ain, became a tier 1 supplier to Boeing in the first half of the year. Strata previously said it plans to be profitable by 2016/2017.
But total comprehensive income was down 37.4 per cent to Dh1.32 billion in the period compared to last year’s first half due a weaker year-on-year performance in the value of Mubadala’s investment portfolio.
Al Mubaraak said in Thursday’s statement that Mubadala “will continue to look for the right opportunities for capital deployment in strategic sectors that are important to Abu Dhabi and its future.”
Total liabilities, meanwhile, were slightly down, to Dh64.3 billion as of June 30 compared to Dh66.3 billion at the end of 2013. Mubadala said this was primarily due to the repayment of a Dh4.6 billion bond that matured this year and the issuance of a Dh2.7 billion worth in eight-year bonds.
Total assets remain unchanged at Dh223.3 billion as of June 30 when compared to the end of 2013. Total equity increased to Dh159 billion in the first half of 2014 compared to Dh157.5 billion at the end of last year.