Abu Dhabi fund Mubadala Development Co swung to a first-half profit on Tuesday which it attributed to higher commodity prices and increased contributions from its semiconductor business.

Unlisted Mubadala, which holds stakes in General Electric and private equity firm Carlyle, said its total comprehensive income was 198 million dirhams ($53.9m) for the period ended June 30. That compares with a loss of 4.4 billion dirhams for the same period last year, according to a statement.   

First-half revenue rose 70 percent to 13.6 billion dirhams from 8 billion dirhams a year earlier, it said. Mubadala's semiconductor business accounted for 40 percent of the firm's revenues. Advanced Technology Investment Co (ATIC) was fully consolidated in Mubadala in June.

ATIC was formed in 2008 and has a stake in chipmaker GlobalFoundries, a joint venture with Advanced Micro Devices Inc.

Mubadala, one of a few state-controlled vehicles to publish results, said its total assets increased 67 percent to 169.7 billion dirhams for the six months to June 30. Overall contribution from Abu Dhabi government amounted to 16.35 billion  dirhams ($4.45 billion), Mubadala told analysts in a conference call to discuss the results.

The company said it was operating in a very volatile environment and expected that to continue for rest of the year. It has no immediate plans to issue bonds.

In April, Mubadala said that it planned to invest $16.3 billion in 2011, nearly four times the average amount it deployed over the last three years. 

Abu Dhabi sits on 10 percent of global oil reserves and accounts for 90 percent of the UAE's oil output, making it one of the world's wealthiest economies.

Abu Dhabi's ruler reshuffled the board of Mubadala in August, replacing two of its members. Although it has fared better than neighbouring Dubai, Abu Dhabi was not immune to the 2008 global financial crisis.
Investment and property firms took a painful hit, prompting a bailout of one developer and a government review of spending.

Mubadala stepped in to help troubled property firm Aldar Properties in a $5.2 billion deal early this year. The fund also helped cooling firm Tabreed seal a debt restructuring deal with creditors. - Reuters