Bahrain Mumtalakat Holding Company posted an increase in revenue of 8.4 per cent and gross profit of 5.5 per cent last year compared to 2010, which it credited to financial restructuring at associate firm Gulf Air and strong performance by Alba.

The sovereign wealth fund, which oversees several strategic non-oil and gas related assets, yesterday reported improved revenues and reduced operating losses in its financial results for last year.

Several restructuring initiatives undertaken by national carrier Gulf Air helped reduce operating losses, achieve cost efficiencies and improve quality of product offering and customer service, it said.

However, regional geo-political situation as well as higher fuel costs significantly affected the airline's operations, resulting in a higher operating loss last year in comparison to the previous financial year.

Mumtalakat reduced its operating loss by almost 88 per cent to BD5.9 million ($15.6 million) last year, from BD48.9 million in 2010. The share of profit from associated companies hence, declined by approximately 11 per cent as a result of lower operating incomes.

Higher impairment losses amounting to BD316.5 million last year, in comparison to the BD191.2 million in the previous financial year resulted in a consolidated net loss of BD270.6 million.

Mumtalakat chief executive Mahmood Al Kooheji remained positive on the kingdom's performance and pledged greater growth and diversification of Bahrain's economy.

'Despite the global and regional economic volatility that was experienced last year, Mumtalakat delivered a robust financial performance,' he said.

'Mumtalakat's diversified portfolio of non-oil and gas assets, benefited from its commitment to drive value enhancement through transparency and strong corporate governance, while maintaining financial discipline and a prudent investment approach.

'We remain in a strong financial position and moving forward Mumtalakat will continue to play a vital role in the growth and diversification of Bahrain's economy, with future investments and partnerships likely to focus on the kingdom and the region,” he added. – TradeArabia News Service