The Bahrain government-controlled Mumtalakat Holding Company said its 2016 net income has jumped 140 per cent as the sovereign wealth fund diversified its portfolio of investments.
The fund, which holds stakes in companies such as carmaker McLaren, posted a net profit of $183.2m last year, up from $76.3m from a year earlier, according to Mumtalakat statement. Total assets, however, dropped by 2.5 per cent to $10.4bn at the end of 2016.
The group profitability increased despite revenue losses by two of its domestic portfolio companies Aluminium Bahrain (Alba) and Gulf Air. Albas sales revenue declined due to a slump in global aluminium prices, while increased regional competition amid challenging macro-economic conditions led higher operating cost for Gulf Air in 2016.
The fund which reported a 68.7 per cent in drop in 2015 profit on the back of impairment losses, attributed the 2016 increase in income to its diversification strategy.
Mumtalakat has concluded five international investments, including its debut foray into healthcare sector through acquisition of a significant equity stake in in European healthcare firm, KOS Group. It has also acquired stake in the UKs Envirogen Group to strengthen its industrial and manufacturing portfolio.
Stakes in Kuwait-based industrial gas producer Gulf Cryo, Spanish aluminium grain refiners manufacturer Aleastur and the acquisition of commercial real estate were the other investments.
Mumtalakats more recent investments constitute less than 10 per cent of its portfolio value, yet they contribute more than 15 per cent to total annual dividends received, funds chief executive Mahmood Hashim Alkooheji said in the statement.
Mumtalakat says it holds stakes in more than 50 commercial enterprises spanning a variety of sectors, including industrial manufacturing and services, financial services, tourism, telecommunications, real estate, logistics, consumer, and healthcare. Its portfolio companies also include Arcapita Group, National Bank of Bahrain and telecoms operator Batelco.