Abu Dhabi fund Mubadala's H1 profit up 10.4 pct on investment gains

ABU DHABI, Sept 26 Thu Sep 26, 2013 2:31pm IST

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ABU DHABI, Sept 26 (Reuters) - Mubadala, the Abu Dhabi investment fund with a mandate to develop the emirate's local economy, on Thursday posted a 10.4 percent rise in first-half profit boosted mainly by income from financial investments.

Mubadala, which has stakes in General Electric and private equity firm Carlyle, said profit attributable to equity owners for the first half of the year was 1.1 billion dirhams ($299.5 million), compared with 984.7 million dirhams in the corresponding period last year.

Unlike other regional sovereign wealth funds like Abu Dhabi Investment Authority (ADIA) or Qatar Investment Authority (QIA), Mubadala's main goal is to engage in investments which enhance development of the local economy, a theme which has gained greater prominence in the wake of the Arab spring.

The fund has interests in semiconductors, oil and gas, aerospace and real estate among others.

Net income from financial investments in the period was 1.3 billion dirhams, Mubadala said. That compared with a loss of 771.6 million dirhams in the opening six months of 2012.

Mubadala's operating income dropped sharply to 614 million dirhams in the first half, compared with 2.3 billion dirhams in the year-ago period due to an increase in investment-related spending, particularly research and development, it said.

First-half revenues dropped to 14.8 billion dirhams versus 16.1 billion dirhams in the same months of 2012. The company attributed this to the one-time exceptional revenue increase recorded last year from semiconductor manufacturing and because of lower hydrocarbon revenues.

Unlisted Mubadala's total assets grew slightly to 204 billion dirhams as at June 30, 2013 from 202.2 billion dirhams at the end of December 2012.

Mubadala, one of the few state-controlled vehicles to publish results, also owns stakes in local companies such as district cooling firm Tabreed and real estate developer Aldar Properties.

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