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Mon 22 Mar 2010 09:42 AM

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Mubadala posts $2.3bn profit from investment gains

Abu Dhabi investor says revenue almost doubled and total assets up 75%.

Mubadala Development, an Abu Dhabi government-backed investor with stakes in Carlyle Group and Ferrari SpA, posted a total comprehensive income of AED8.6 billion ($2.3 billion) last year on investment gains.

Revenue almost doubled to AED13.1 billion and total assets rose 75 percent to AED88.5 billion, Mubadala said in an e-mailed statement on Monday. The main contributors to the revenue were Dolphin Energy, SR Technics and changes in the valuation of investments in Advanced Micro Devices, Aldar Properties, and Emirates Integrated Telecommunications.

Mubadala reported a loss of AED11.8 billion in 2008, according to the company’s web site. It didn’t give comparative numbers in Monday’s statement and the loss was confirmed by Chief Financial Officer Carlos Obeid in a phone interview Monday.

“We have a robust portfolio of businesses, a solid pipeline of projects, ready access to diverse sources of funding coupled with strong support from our shareholder,” chief executive officer and managing director Khaldoon Khalifa Al Mubarak said in the statement. “This puts us in a unique position to realise value and further opportunities in 2010.”

Abu Dhabi, capital of the UAE and home to more than 7 percent of the world’s proven crude reserves, is trying to diversify from oil by investing in industries such as real estate, aerospace and entertainment. Mubadala’s investments include an $8 billion joint venture with General Electric in emerging markets, and a stake in AMD, the second-largest maker of personal-computer processors.

Mubadala was one of seven Abu Dhabi companies to have its rating cut by Moody’s Investors Service this month, citing the lack of an “explicit formal agreement” for government support. Mubadala’s rating was slashed to step to Aa3, the fourth highest investment grade.

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