Mubadala releases operational and financial results for H1, 2015

Mubadala Development Company, the Abu Dhabi-based investment and development company, today released its interim financial statements and business highlights for the first half of 2015.

Mubadala Group CEO and Managing Director, Khaldoon Khalifa Al Mubarak, said, "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. The opening of Cleveland Clinic Abu Dhabi, the region’s most sophisticated medical facility, and the continued expansion of portfolio companies such as Yahsat and Strata, continue to help drive the economic diversification of the UAE."

According to the statement, operational highlights from across the Mubadala Group for the period ended 30th June 2015, included Cleveland Clinic Abu Dhabi, located on Al Maryah Island, becoming fully operational in May, since when over 35,000 appointments have been completed, spanning 1,500 medical procedures.

Al Maryah Island, a Mubadala development, is Abu Dhabi’s international financial centre with Abu Dhabi Global Market establishing its headquarters on the island. Al Maryah Central, a 3.1 million sq. ft. mixed-use mall, commenced construction, further cementing the island’s position as Abu Dhabi’s business and lifestyle destination.

Mubadala and Trafigura announced the signing of an agreement to create a 50/50 joint venture company to invest in the base metals mining sector, beginning with copper extraction operations in Spain.

GLOBALFOUNDRIES announced it had closed its proposed acquisition of IBM’s microelectronics business after receiving all of the required regulatory approvals.

The International Renewable Energy Agency’s global headquarters in Masdar City was inaugurated, which alongside GE, Siemens and Lockheed Martin, are contributing to Masdar City’s growing ecosystem focused on sustainability, research, business and education.

Strata, the Al Ain-based composite aero structures manufacturer, was awarded a contract to manufacture Airbus A350-1000 Flap Support Fairings until 2023, and Boeing delivered the first 787 Dreamliner with advanced composite parts made by Strata.

Emirates Defence Industries Company announced its second phase of integration by adding five new subsidiaries to its portfolio, furthering its position as the region’s premier integrated defense services and manufacturing platform.

Yahsat’s YahClick service expanded into Pakistan, providing satellite internet to rural and remote communities across 13 countries where traditional networks are often unreliable.

Mubadala Petroleum commenced production at Nong Yao, its third operated oil field in Thailand. Proved and probable reserves contained in Nong Yao’s primary reservoirs and recoverable by water injection are estimated to be in the order of 12.4 million barrels (gross).

Mubadala Group CFO, Carlos Obeid, said, "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."

Financial highlights for the period ended 30th June 2015 were as follows: Revenues were at AED 15.9 billion compared to AED 16 billion in H1 2014 as higher semiconductor, information and communications technology, healthcare, real estate and industry-related revenues were offset by lower aerospace and energy-related revenues.

Operating income was AED 761.8 million compared to AED 2.4 billion in H1 2014 primarily due to the higher cost of sales of goods and services during the period and lower income from disposals compared to H1 2014.

Profit was AED 625.5 million compared to AED 1.3 billion in H1 2014, and total comprehensive income was AED 477.7 million compared to AED 1.3 billion in H1 2014, as an increase in income from financial investments was offset in part by lower operating income.

Total assets were AED 241.7 billion as at 30th June 2015 compared to AED 243.6 billion as at the end of 2014.

Total equity was AED 175.8 billion as at 30th June 2015 compared to AED 175.7 billion as at 31st December 2014.

Total liabilities and leverage were AED 65.9 billion as at 30th June 2015 compared to AED 68 billion as at 31st December 2014. Mubadala’s gearing ratio was 9.2% as at 30th June 2015.

Mubadala’s credit ratings remained among the top corporate ratings globally at Aa2/AA/AA by Moody’s, Standard & Poor’s and Fitch, respectively.
WAM/AAMIR/Moran