Mubadala Development Company (Mubadala), the Abu Dhabi-based strategic development and investment company, today announced its financial performance and operational highlights for the first half of 2010.
Key operational highlights from the first half of 2010 include the:
· creation of Sanad Aero Solutions, launched in January of this year to lease aircraft components and spare engines and to support Mubadala's global maintenance, repair and overhaul business; · creation of AMMROC (Advanced Military Maintenance, Repair and Overhaul Center), a joint venture with Sikorsky Aerospace Services that will provide maintenance, repair and overhaul services to the United Arab Emirates Armed Forces and other military operators internationally; · creation of Mubadala Pramerica Real Estate Investors, a joint venture with Pramerica Real Estate Investors that will raise capital from investors to fund and invest in real estate projects; · announcement of plans to expand the Imperial College London Diabetes Centre by opening a new facility in Al Ain that will provide world-class medical care and diabetes treatment to local residents; and the · establishment of training courses with local educational institutions for new Emirati employees at Strata - Mubadala's advanced composite manufacturing facility in Al Ain.
Revenue from operations grew to AED 8.0 billion, an increase of AED 2.1 billion over the same period in 2009, driven by strong performance in the Aerospace, Infrastructure, and Oil & Gas businesses, which all realized significant growth in their operating income.
o Operating income grew 20% to AED 2.5 billion from AED 2.1 billion
o Assets increased 11% to AED 9.7 billion from AED 8.7 billion
o Operating income grew 21% to AED 1.7 billion from AED 1.4 billion
o Assets increased 44% to AED 7.5 billion from AED 5.2 billion
· Oil & Gas
o Operating income grew 44% to AED 3.6 billion from AED 2.5 billion
o Assets remained stable at AED 12.4 billion
Mubadala's Total Comprehensive Income (TCI) for the period was a negative AED 4.5 billion. This result reflects an unrealized loss of AED 4.4 billion from Mubadala's public markets investments due to the decline in the local and global markets during the first half of this year. These investments are important components of Mubadala's long term strategy, and the company recognizes that share price fluctuations will have a positive or negative effect on its periodical reporting of financial performance.
Mubadala's total assets under management stood at AED 86.1 billion at the end of the first half of 2010. Total equity decreased 4.7% to AED 46.6 billion in the first half of 2010 from AED 48.9 billion in December 2009. Recently, Mubadala's Board of Directors approved increasing Mubadala's share capital from AED 5.5 billion to AED 15 billion through the conversion of certain shareholder rights. The share capital increase is currently in the process of being formalized.
Commenting on Mubadala's progress, Khaldoon Khalifa Al Mubarak, Mubadala CEO and Managing Director, said:
"Mubadala is a young and dynamic company with a very promising portfolio of assets. As long term holders of substantial and strategic positions in leading local and global companies, we will experience some unrealized losses and gains during our holding period. We remain focused on building a strong and diversified portfolio of assets, and delivering tangible social contributions to Abu Dhabi.
We have witnessed the first aluminum rolling off the EMAL plant four months ahead of schedule; the recent completion of the Paris-Sorbonne University Abu Dhabi campus, substantial construction work at the UAE University and Zayed University campuses; a significant increase in patient numbers at the Imperial College London Diabetes Center (ICLDC); and, the first three Mubadala-sponsored Emirati students to take part in NASA's prestigious internship program - the only non-Americans ever to do so. These milestones underscore the tangible contributions that Mubadala is making towards Abu Dhabi's economic diversification."