Text size:

  • Small
  • Normal
  • Large
Mubadala Development reported Dh1.1bn of profits last year, a 76 per cent decline compared to 2009. Pawan Singh / The National.
Mubadala Development reported Dh1.1bn of profits last year, a 76 per cent decline compared to 2009. Pawan Singh / The National.

Mubadala posts Dh1.1bn profit amid growing diversification

Mubadala Development reported Dh1.1bn of profits last year, a 76 per cent decline compared to 2009 - with video.

Mubadala Development, the Abu Dhabi government-owned strategic investment company, today reported a Dh1.1 billion profit for last year, 76 per cent lower than the year before.

Despite the decline in profitability, Mubadala said revenues grew 22 per cent last year across divisions ranging from infrastructure and aerospace to industry and property. Mubadala, a prime vehicle for the diversification of Abu Dhabi's economy away from oil, made Dh4.65bn of profits in 2009.

When factoring in changes in the value of investments in listed securities, Mubadala said it turned in an loss of Dh315 million last year.

"I think everybody's view is that 2010 was a year that started out fraught with challenges but one in which I think we acquitted ourselves quite well, all things considered," said Waleed al Muhairi, Mubadala's chief operating officer. "Growth in revenues was quite healthy and respectable."

The company was particularly happy that a larger slice of its revenues came from businesses outside the oil and gas sector, he added. In past years, Mubadala's revenues have been dominated by contributions from Dolphin Energy, an Abu Dhabi company that operates the Gulf's only cross-border gas pipeline, and Pearl Energy, an exploration and production company that operates primarily in South East Asia.

"In 2008, oil and gas accounted for something like 80 per cent of our revenue make-up," Mr al Muhairi said. "In 2010 it's down to just under 40 per cent, so about 38 per cent. We're quite excited about that."

Milestones last year included reaching full production capacity at Emirates Aluminum, Mubadala's aluminium production venture; the inauguration of Strata, the company's aerospace materials manufacturing business in Al Ain; and the first profitable year for its health care division.

This year, Mr al Muhairi said Mubadala would work on building its businesses further, while continuing to "manage through" recent volatility and uncertainty in financial markets. Mubadala will make new investments as opportunities emerge, he said. One focus is on expanding holdings of bauxite mines and other aluminium production assets to give Emirates Aluminum greater control over the commodity's supply chain.

The recent wave of unrest that has swept through the region would have no substantial impact on Mubadala financially, Mr al Muhairi said. While the company has an oil exploration concession in Libya and is partner to a joint venture with Occidental Petroleum to develop and produce energy in Bahrain, those operations are not a core part of its energy portfolio. Employees working on both of those projects have been accounted for and are safe, he said.

As revenues at Mubadala's businesses grew last year, the company's assets increased by 14 per cent to Dh101.5bn. Equity contributed to Mubadala jumped by 26 per cent to Dh62.1bn thanks to around Dh13bn of government injections into the company.

Mubadala has reported wide swings in profits during the past three years, with a comprehensive loss of Dh11.8bn in 2008 followed by a profit of Dh4.6bn in 2009.



Back to the top

More articles

Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 Three generations of the Hakimi family tend to their stall Crawford Market in Mumbai. Subhash Sharma for The National

In pictures: Shopper’s delight at Crawford Market in Mumbai

Crawford Market is an old British-style covered market dealing in just about every kind of fresh food and domestic animal imaginable. Later on renamed Mahatma Jotirao Phule, the market remains popular among locals and visitors by its old name, taken from Arthur Crawford who was the first municipal commissioner of the city.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.


To add your event to The National listings, click here

Get the most from The National