Sunday 01, October 2017 by Jessica Combes

Mubadala Investment Company announces half-year 2017 financial and operational highlights

 

Abu Dhabi-based investment company, Mubadala Investment Company (Mubadala), has announced its half-year 2017 financial results, the first interim reporting as a new entity.

The results incorporate the Mubadala Development Company (MDC) and International Petroleum Investment Company (IPIC) financial statements from the first half of 2017.

“The results from the first half of 2017 reflect the strength and scale of Mubadala Investment Company’s diversified global portfolio and robust balance sheet. We will continue to integrate, optimise and grow the company’s assets under our global business platforms, to create and realise maximum financial and strategic returns to support diversification of the economy of Abu Dhabi and the country,” said Khaldoon Khalifa Al Mubarak, Group Chief Executive Officer and Managing Director.

span style="font-size: small;">Financial highlights for the half-year period ending 30 June 2017 include:
Revenues were AED 83.4 billion, compared to AED 72.9 billion for the same period in 2016 due to strong performance and higher revenues across Mubadala’s four investment platforms, with the primary drivers being the upstream and integrated oil and gas, semiconductors, and aerospace sectors.

Operating Income was AED 5.5 billion compared to AED 3.3 billion for the same period in 2016, primarily driven by petrochemicals and refining, defence services, and aluminium manufacturing.

span style="font-size: small;">Total assets were AED 465.5 billion as of 30 June 2017, compared to AED 449.7 billion at the end of 2016, primarily due to an increase in the value of financial investments; a $ 2.1 billion bond raised by Nova Chemicals which was utilised post-June 2017 for the acquisition of a Geismar, Louisiana Olefins plant; and dividends from financial investments. 

Profit was AED 4.2 billion, compared to a negative AED 4.7 billion for the same period in 2016, while

Total Comprehensive Income was AED 6.8 billion against a negative AED 5.4 billion for the same period 2016, led by improved operating income, gains from financial investments and favourable currency movements.

Total equity was AED 235.4 billion at the end of June 2017, compared to AED 228.3 billion at the end of 2016.

Cash and cash equivalents were AED 45.8 billion at the end of June 2017, compared to AED 33.8 billion at the end of 2016.

Mubadala’s gearing ratio was 28 per cent at the end of June 2017, compared to 30 per cent at the end of 2016.

Both MDC and IPIC hold credit ratings by Moody’s, Standard & Poor’s and Fitch of Aa2/AA/AA respectively.

“In the first half of 2017, we worked to integrate the two portfolios under the Mubadala Investment Company.  We managed our costs prudently, while monetising mature assets and growing our profit as we reduced our overall leverage,” said Chief Financial Officer, Carlos Obeid.

Mubadala Investment Company’s four global business platforms are: Alternative Investments & Infrastructure; Petroleum & Petrochemicals; Technology, Manufacturing & Mining; and Aerospace, Renewables and Information & Communications Technology.

Operational highlights for the half-year period ending 30 June 2017 include:

Mubadala made an AED 55.1 billion ($ 15 billion) commitment to the AED 367.4 billion ($ 100 billion) SoftBank Vision Fund. The Fund will seek to acquire minority and majority interests in both private and public companies from emerging technology businesses to established, multi-billion dollar companies requiring substantial growth funding.

Ardian announced it would commit up to AED 9.1 billion ($2.5 billion) to private equity funds managed by Mubadala Capital. The European fund manager together with a group of global, institutional co-investors, invested AED 5.5 billion ($1.5 billion) in an existing Mubadala Capital private equity portfolio, while Mubadala and the Ardian investor group also committed equal primary capital commitments.

Imperial College London Diabetes Centre’s new Zayed Sports City branch, which opened in November 2016, recorded more than 13,000 patient visits in H1 2017.

Cleveland Clinic Abu Dhabi completed 183,211 appointments and 8,098 surgeries and procedures during the first half of 2017. Healthpoint hospital registered more than 162,000 patients and conducted more than 1,950 surgeries and procedures.

Mubadala Petroleum received all necessary approvals for the development of the CRD oil and gas field offshore Vietnam, which will be operated by Repsol.

Nova Chemicals made an AED 7.7 billion ($2.1 billion) investment in Q2 to acquire one of the largest petrochemical facilities in the United States, in Geismar, Louisiana, enhancing its ability to serve US and international customers.

Nova and Borealis signed an agreement with Total for a joint venture, covering polyethylene facilities along the US Gulf Coast. The JV will encompass Total’s existing facility and investment in a new ethylene cracker and Borstar® PE plant.

Mubadala sold 45 million shares worth AED 2.25 billion ($613 million) in AMD in March 2017, in line with its strategy of capitalising on long-term investments. A further 40 million shares worth AED 1.93 billion ($526 million) were sold in August 2017 with Mubadala retaining a 12.9 per cent stake and remaining the largest shareholder in the US-based semiconductor company.

GLOBALFOUNDRIES announced plans to expand its global manufacturing footprint, further investing in its existing leading-edge fab in the US, adding capacity for mainstream technologies in Dresden and mature technologies in Singapore and expanding its footprint to China with a fab in Chengdu.

Emirates Global Aluminium (EGA) opened its first office in China and continues to make progress on two major value chain integration projects including: a 2 million tonne alumina refinery at Al Taweelah, Abu Dhabi, and a 12 million tonne bauxite export mine in Guinea. EGA also filed for four new patents aimed at enhancing productivity and operational efficiency in the production of metallic aluminium.

Mubadala sold a 40 per cent stake in Tabreed to Engie, a French-based energy company, for AED 2.9 billion, but remains the largest shareholder with a 42 per cent stake.

Masdar announced its acquisition of a 25 per cent stake in the world’s first commercial-scale floating offshore wind farm in Hywind, Scotland in partnership with Statoil of Norway.

Turbine Services & Solutions successfully delivered repair and overhaul services on more than 40 of GE’s GEnx engines for regional and global airline customers.

The comparison is based on Mubadala Investment Company half year 2017 financial highlights, to the combined MDC and IPIC half and full year 2016 financial results.

  

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