2 Min Read
(Corrects in para 3 to say the company's comprehensive income in 2015 was a negative 1.3 bln dirhams due to a fall in the market value of some assets)
ABU DHABI, March 30 (Reuters) - Abu Dhabi's state-owned Mubadala Development Co, which is merging with fellow Abu Dhabi-owned International Petroleum Investment Company (IPIC), said on Thursday its net profit nearly tripled in 2016.
Mubadala, which is focused on developing Abu Dhabi's economy through local companies such as clean energy firm Masdar and stakes in international players such as General Electric, is among the few state-controlled firms to publish results.
The company reported a net profit of 3.3 billion dirhams ($899 million) for 2016, compared to a net profit of 1.2 billion dirhams in 2015. Its total comprehensive income, which comprises all forms of income, was 4.1 billion dirhams in 2016, recovering from a negative 1.3 billion dirhams in 2015 when the market value of some assets fell.
Its revenues grew to 31.5 billion dirhams in 2016 from 29.7 billion dirhams in the previous year, while income from financial investments, the main driver of its profit totalled 5.4 billion dirhams in 2016 versus 3.4 billion dirhams in 2015.
"It has been a strong year for Mubadala in terms of profits and revenue growth and managing our leverage," Khaldoon al-Mubarak, chief executive & managing director told Reuters.
"We reduced our leverage from 14 percent in 2015 to 11.2 percent end of 2016," he added.
Mubadala's merger with IPIC is due to be fully completed in May and the combined group will have assets of about $125 billion.
For a related story on Mubadala's investment plans, click on ($1 = 3.6729 dirhams) (Reporting by Stanley Carvalho; Editing by Susan Fenton/David Evans/Alexander Smith)