Mumtalakat revenue drops 28pc
Manama, June 27, 2010
Mumtalakat Holding Company, the investment arm of Bahrain, has registered a 28 per cent drop in its 2009 revenue which plunged to BD1.038 billion ($2.75 billion) when compared to BD1.448 billion ($3.84 billion) the previous year.
Announcing its financial results for the year ended December 31, 2009, Mumtalakat said that on a consolidated basis, it had registered an operating loss of BD123 million.
The net loss after taking into consideration interest expense, fair value loss on derivatives and impairment losses was BD183 million compared to a net loss of BD69 million for the year ended 31 December 2008, the company added.
Chief executive officer Talal Alzain blamed the global economic crisis for the figures, along with a restructuring of Mumtalakat's operations and investment portfolio.
'Our figures today are principally due to the truly global effects of the economic crisis, but we are continuing to make progress,' he said.
'I would characterise 2009 as a year in which we took an inward-looking approach to prepare for the future, focusing on our portfolio companies and building Mumtalakat's capabilities as a financial institution.
'However, in 2010 I see a great opportunity to really enhance the value in our portfolio companies and potentially start the process of rebalancing our portfolio through measured steps which fit in with our role of investing for Bahrain.'
Revenues from non-oil and gas investments made by the Bahrain government dropped by almost a third last year, compared to 2008.
In a statement announcing the results, Mumtalakat said financial turmoil had an adverse effect on Gulf Air, while forcing down the London Metal Exchange (LME) price of aluminium - meaning a fall in revenues at Alba.
However, while Alba registered a net loss for the year 'primarily attributable to unrealised losses on mark-to-market derivatives and a one-time restructuring charge', Mumtalakat said it generated positive cash flows from its operations.
It added that during 2009, several initiatives were undertaken to strengthen corporate governance and build a strong platform that would allow Mumtalakat to meet future challenges and enhance shareholder value.
The company reported a significant reduction in impairment losses to BD43m last year, compared to a loss of BD370m in 2008 'due to the broader economic recovery underway towards the end of the reporting period resulting in better fair market value'.
It also said improved operating results of NBB, Batelco and McLaren meant the share of profit of associates increased to BD82 million, compared to BD74 million in 2008.
Meanwhile, Mumtalakat's total assets remained stable at BD4.9 billion.
Established in June 2006, Mumtalakat is an independent holding company for the Bahrain government's strategic non-oil and gas assets.
It was created to pursue 'value-enhancing opportunities', while improving the transparency and performance of state-owned non-oil and gas assets.
The firm holds stakes in more than 35 commercial enterprises spanning a variety of sectors, including aluminium production, financial services, telecommunications, real estate, tourism, transportation and food production.-TradeArabia News Service
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