Mubadala reports 11.5% increase in 2017 operating profit

Mubadala Investment Co was formed after a merger International Petroleum Investment Co (IPIC) during the year
Mubadala's growth in revenue was driven by a strong performance across all four of its global platforms, with particularly significant contributions from its upstream and integrated, petrochemical and semiconductor business sectors.
By Bernd Debusmann Jr
Sun 29 Apr 2018 12:45 PM

Mubadala Investment Company reported an operating profit of $2.9 billion for 2017 up 11.5 percent on the previous year.

The Abu Dhabi-owned company, formed following a merger with International Petroleum Investment Co (IPIC) during the year, earned AED 165.6 billion ($45.09 billion) in 2017, up from 145.5 billion ($39.61 billion) in 2016, according to financial results released on Sunday.

According to the company, the growth in revenue was driven by a strong performance across all four of its global platforms, with particularly significant contributions from its upstream and integrated, petrochemical and semiconductor business sectors.

Additionally, total assets rose from 449.7 billion ($122.44 billion) at the end of 2016 to AED 469.4 billion ($127.8 billion) at the end of 2017, while total equity rose from 228.3 billion ($62.16 billion) to AED 258 billion ($70.24 billion) over the same time period.

“2017 was a landmark year for our new organisation,” said group CEO and managing director Khaldoon Khalifa Al Mubarak. “All four global platforms contributed to our strong financial and operation results.

“The scale of our integrated portfolio enabled us to increase investments in existing companies and monetise mature assets, while entering new sectors in key international markets where we see long-term growth potential and alignment with Abu Dhabi’s strategic priorities.”

Carlos Obeid, Mubadala’s chief financial officer, said that 2017 saw the company make “significant progress by reducing overall leverage while maintaining appropriate liquidity to deploy capital in new investments.”

“In addition, we took the opportunity to monetise some of our mature assets which provided a significant return on our original investments, in line with our mandate to deliver financial returns to our shareholder.”

Over the course of the year, Mubadala successfully completed the sale of a 40 percent stake in its district cooling business, Tabreed, to ENGIE, for AED 2.8 billion, and made an AED 55.1 billion ($15 billion) commitment to the SoftBank Vision Fund, the world’s largest dedicated technology investment vehicle.

In its petroleum and petrochemical business sector, Nova Chemicals announced that acquisition of one of the largest petrochemical facilities in the United States in Geismar, Louisiana for AED 7.7 billion ($2.1 billion), marking a significant entry into the US Gulf Coast market.

On the technology side, Mubadala sold 85 million shares worth AED 4.18 billion ($1.13 billion) in Advanced Micro Devices, in which it retained a 12.9 billion stake in and remains the largest shareholder.

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Last Updated: Sun 29 Apr 2018 03:56 PM GST

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