Abu Dhabi investor hit by growing costs, commodities volatility
- Abu Dhabis Mubadala Development Companys first half profits fell 51.9 per cent to AED625.5m ($170m)
- The falls were due to volatile commodity prices and higher costs of goods and services
Abu Dhabi state-owned investment fund Mubadala Development Company has seen its first half profits fall 51.9 per cent year-on-year.
Mubadala made an AED625.5m ($170m) profit in the first half of 2015, compared to AED1.3bn in the same period in 2014.
It attributed the fall in profits to a sharp fall in Mubadalas operating income from AED2.3bn to AED761.8bn due to higher costs of goods and services. Its income from asset disposals also fell.
Mubadalas revenue stayed steady at AED15.9bn. Higher semiconductor, information and communications technology, healthcare, real estate and industry-related revenues were offset by lower aerospace and energy-related revenues.
Its assets slipped slightly from AED243.6bn at the end of 2014 to AED241.7bn in mid-2015.
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, said group CFO, Carlos Obeid in a press release. As the economic situation remains unclear, we continue to carefully manage our operations and balance sheet.
Recent Mubadala deals include a 50 per cent joint venture for Spanish mining group Minas de Agues Tenidas (Matsa), the acquisition of IBMs microelectronics business, and a hydrocarbon exploration agreement off the Mediterranean coast of Morocco.