ABU DHABI: Mubadala, the Abu Dhabi investment fund with a mandate to boost the emirate’s local economy, swung to a net profit in 2012, helped by improved margins at some of its core businesses and lower impairments, it said.
Abu Dhabi, capital of the UAE is investing billions of dollars in industry, tourism and infrastructure locally as well as overseas through state-backed entities such as Mubadala.
However, earlier this month Mubadala signed a $2 billion loan refinancing with banks to replace a $ 2.5 billion loan agreed in 2010
Spreads on Mubadala bonds widened slightly with the $ 500 million 7.625 percent bond maturing bid at 128.5 cents to the dollar to yield 2.520, compared with 2.515 on Wednesday.
A $ 750 million 5.5 percent bond maturing 2021 was bid at 117.5 cents to the dollar to yield 3.03 percent, compared with 2.962 percent on Wednesday.
The fund made a profit of AED 455 million ($ 124 million) in 2012, compared with a loss of AED 3.2 billion in 2011, when it booked heavy impairments on its financial portfolio.
The fund, which has a local joint venture with General Electric and interests in the semiconductor, oil and gas, aerospace and real estate sectors in the region, increased its
revenue by 12 percent last year to 31.3 billion dirhams, boosted, it said, by higher semiconductor sales and land sales.
Losses from financial investments fell to AED 1.43 billion last year after a loss of AED 3.03 billion in 2011, while impairments on the fund’s property portfolio dropped to AED 585.7 million from AED 653 million.
“Our 2012 financial performance is a reflection of how we manage our portfolio, with certain key assets and projects reaching further maturity and improved market conditions positively impacting the value of many of our financial investments,” said Chief Executive Khaldoon Al Mubarak.
Mubadala’s total assets stood at AED 202.8 billion ($ 55.22 billion) at the end of the 2012, up from AED 177.1 billion a year ago.
Mubadala, one of few state-controlled vehicles to publish results, also owns stakes in listed local companies such as Tabreed and indebted developer Aldar Properties which received shareholder approval for a merger with rival Sorouh Real Estate.
