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Al Mubarak ... 2017 was a landmark year for our new
organisation

Mubadala reports $2.9bn operating income in 2017

ABU DHABI, April 29, 2018

Mubadala Investment Company of Abu Dhabi has reported its full-year 2017 financial and operational highlights,  revealing an operating income of Dh10.7 billion ($2.91 billion), compared to Dh9.6 billion ($2.61 billion) in 2016.

Petrochemical and aluminium manufacturing assets were major growth drivers for the company’s operational income, said a statement.

Mubadala achieved revenues of Dh165.6 billion ($45.08 billion) in 2017, compared to Dh145.4 billion ($39.58 billion) in 2016, which were achieved by the strong performance of all four global platforms, with major contributions from upstream and integrated, petrochemicals and the semiconductor business sectors, it said.

Khaldoon Khalifa Al Mubarak, group chief executive officer and managing director, Mubadala, said: “2017 was a landmark year for our new organisation. All four global platforms contributed to our strong financial and operational results.”

“The scale of our integrated portfolio enabled us to increase investments in existing companies and monetise mature assets, while entering new sectors in key international markets where we see long-term growth potential and alignment with Abu Dhabi’s strategic priorities,” he said.
 
Other financial highlights for the full-year period include:
• Total comprehensive income was Dh10.3 billion ($2.80 billion) compared to Dh5.1 billion ($1.38 billion) in 2016, with gains from divestments of mature assets and the increase in value of financial holdings.
• Total assets were Dh469.4 billion ($127.79 billion) at the end of 2017 compared to Dh449.7 billion ($122.43 billion) at the end of 2016.
• Total equity was Dh258 billion ($70.24 billion) at the end of 2017 compared to Dh228.3 billion ($62.15 billion) at the end of 2016.
• Cash and cash equivalents was Dh29.9 billion ($8.14 billion) at the end of 2017 compared to Dh33.8 billion ($9.20 billion) at the end of 2016.
• The gearing ratio was 28.7 per cent at the end of December 2017, compared to 29.6 per cent at the end of 2016.
Mubadala Investment Company was formed through the merger of Mubadala Development Company and International Petroleum Investment Company in 2017. The companies, both wholly owned subsidiaries of Mubadala Investment Company, hold credit ratings by Moody’s, Standard & Poor’s and Fitch of Aa2/AA/AA respectively.

Carlos Obeid, chief financial officer, said: “In 2017 we made significant progress by reducing overall leverage while maintaining appropriate liquidity to deploy capital in new investments.”

“In addition, we took the opportunity to monetise some of our mature assets which provided a significant return on our original investments, in line with our mandate to deliver financial returns to our shareholder,” he added.

Operational highlights from across Mubadala Investment Company’s four global business platforms are:

Aerospace, Renewables & ICT
• Mubadala successfully completed the sale of a 40 per cent stake in Tabreed, its district cooling business, to Engie, a global energy leader for Dh2.8 billion ($762.32 million). Mubadala remains the largest shareholder of the Abu Dhabi based district cooling utility company.
• Masdar inaugurated its third wind farm in the UK, the Dudgeon Offshore Windfarm, bringing the combined power generating capacity of all three projects to 1 gigawatt (GW) – enough clean energy to supply nearly 1 million homes. The wind farm comprises 67 wind turbines and is now supplying around 410,000 UK homes in one of the largest deployments of 6MW wind turbines, the most powerful on the market.
• Strata Manufacturing completed delivery of its first set of A350-900 inboard flaps to Airbus. Airbus selected Strata to manufacture the A350-900 inboard flap in 2015. Strata-produced inboard flaps have been incorporated into A350s from January 2018 and the company expects to ramp up production of these important components in 2018 and 2019.

Alternative Investments & Infrastructure
•Mubadala made a Dh55.1 billion ($15 billion) commitment to the $100 billion SoftBank Vision Fund, the world’s largest dedicated technology investment vehicle.
•Mubadala opened its first US office in San Francisco, to support its Venture Capital business which will oversee early growth investments and manage the Softbank Vision Fund investments.
•Ardian, the world-class French private equity investment company, confirmed it would commit up to Dh9.1 billion ($2.47 billion) to private equity funds managed by Mubadala Capital.
•Mubadala continued to invest in its world-class healthcare facilities, which saw substantial growth across 2017. Cleveland Clinic Abu Dhabi recorded 475,319 patient visits and performed 13,372 surgical cases. The multi-specialty hospital also achieved a major medical landmark with the country’s first full multi-organ transplant. This landmark moment for tertiary transplant medicine in the UAE, and the region, included a heart, lung, kidney and split-liver transplant; Healthpoint recorded 319,870 patients visits and physicians performed 4,891 surgical cases; Imperial College London Diabetes Centre (ICLDC) recorded an 18 per cent increase in patient activity with a total of 326,684 patient visits, and the new Zayed Sports City branch reached breakeven point after only three months of operation.

Petroleum & Petrochemicals
•Nova Chemicals announced the acquisition of one of the largest petrochemicals facilities in the US, the olefins plant in Geismar, Louisiana, for Dh7.7 billion ($2.1 billion), marking a major entry into the US Gulf Coast market.
•Borealis and Adnoc, working through the Borouge joint venture, announced plans to extend and expand petrochemical activities in Ruwais, through the building of the Borouge 4 polyolefin facility and an engineering, procurement and construction tender for the new Borstar polypropylene plant, PP5.
•In November 2017, Cepsa and Adnoc signed an agreement to evaluate a new world-scale LAB complex in Ruwais, Abu Dhabi, expected to be operational in 2022. Cepsa is the world’s leading producer of Linear Alkylbenzene (LAB), the main raw material used to make biodegradable detergents, producing 600,000 tonnes annually equating to 15 per cent of global production. Adnoc and Cepsa bring complementary strengths to the project; Adnoc resources and expertise in the feedstock area from its Ruwais refinery, and Cepsa’s LAB technology and market knowledge.

Technology, Manufacturing & Mining:
• EGA produced a record 2.6 million tonnes of cast metal in 2017, exceeding 2016’s production and making EGA the third largest producer of primary aluminium outside China. EGA also 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.
• Mubadala sold 85 million shares worth Dh4.18 billion ($1.139 billion) in advanced micro devices (AMD). Mubadala retained a 12.9 per cent stake in AMD and remains the largest shareholder.
• GlobalFoundries successfully ramped up its most technologically advanced facility at Malta, in upstate New York, delivering 14nm technology to some of the largest fabless players in the industry at best-in-class product yields. The company is also building an advanced 300mm semiconductor fab in Chengdu, China. The construction of the fab is on track to be completed in 2018, it stated. – TradeArabia News Service




Tags: abu dhabi | Mubadala | investment company |

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