Abu Dhabi: Mubadala Investment Company on Thursday announced a profit of Dh10.9 billion for the first half of 2018 driven by strong revenues from public equities and operating companies in the petroleum and petrochemicals platform, the company said on Thursday.
The Abu Dhabi based Mubadala also announced a total comprehensive income of Dh10.6 billion for the half year period ending June 30, 2018.
Total assets, including that of Abu Dhabi Investment Council, which became part of Mubadala earlier this year, were Dh832 billion at the end of first half of this year. The total equity of the group was Dh583 billion.
“In the first half of the year, we continued to deploy capital in new sectors and geographies, in line with our long-term strategy. We also monetised select assets at good valuations, to deliver financial returns,” said Khaldoon Khalifa Al Mubarak, group chief executive officer and managing director of Mubadala Investment Company in a statement.
“And, the decision to bring the Abu Dhabi Investment Council into the Mubadala Group has increased the scale and breadth of our portfolio.”
Mubadala’s chief financial officer, Carlos Obeid, said: “Leverage remains well-balanced across the portfolio and cash flow is solid.”
Obeid also noted that historically reported figures such as revenue and net operating income are no longer meaningful or indicative of performance for a group as diverse, dynamic and global as Mubadala.
The company did not provide a profit figure for the same period of last year as Abu Dhabi Investment Council was merged with Mubadala in March this year.
In the first half of 2018, Mubadala delivered a number of operational highlights in aerospace, renewables, alternative investments and infrastructure, petroleum and petrochemicals and technology, manufacturing and mining.
Cepsa IPO
In petroleum and petrochemicals, Compañía Española de Petróleos (Cepsa), which is 100 per cent owned by Mubadala announced this week to pursue a public offering in Spain in the fourth quarter of 2018.
Mubadala did not disclose the value of the listing or the valuation of the company, but said the IPO is expected to be the largest one in the oil industry this year.
Cepsa also sealed a number of agreements to boost its upstream business including a 40 year concession to develop Sarb and Umm Lulu fields in Abu Dhabi for a participation fee of $1.5 billion (Dh5.51 billion). It also signed a new concession agreement in Algeria.
Mubadala Petroleum, a wholly-owned subsidiary of Mubadala Investment Company completed the acquisition from Italy’s Eni of a 10 per cent participating interest in the offshore Shorouk Concession in Egypt, which contains the Zohr gas field.
$400m venture fund
In alternative investments and infrastructure segment, Mubadala announced its intent to create a $400 million venture fund to invest in leading European technology companies. The fund will be managed by Mubadala Ventures, the venture capital arm of Mubadala with SoftBank Group as a strategic investor. The fund will target founder-led, high growth technology companies with global scale and impact.
Mubadala also announced the sale of its consortium’s majority interest in EMI Music Publishing to Sony Corporation (Sony) at an enterprise value of $4.75 billion earlier this year.
Mubadala Investment Company was created in 2017 with the merger of Mubadala Development Company and International Petroleum Investment Company (IPIC) to create one of the largest sovereign wealth funds in the world.
Mubadala’s portfolio of over $225 billion spans five continents with an investment focus on different sectors including oil and gas, aerospace, healthcare and real estate, among others.
Commenting on the financial results, Ehsan Khoman, Head of MENA Research and Strategy at MUFG Bank Ltd told Gulf News, “Mubadala’s benign earning results are a testament to its strategy of undertaking calculated investments across a broad spectrum of sectors in tactical international markets, which has ultimately increased the overall scope and breadth of its integrated portfolio mix.”
