The
investment fund also said it would triple its capital base by converting debt
held by the government into equity, effectively relieving it of interest
payment obligations and giving the government more control over the fund. Mubadala
has stakes in Advanced Micro Devices Inc and Ferrari, as well as General
Electric and private equity firm Carlyle.
“The company recognizes that share price fluctuations will
have a positive or negative effect on its periodical reporting of financial
performance,” Mubadala said in a statement.
Total assets under management stood at 86.1 billion dirhams
at the end of June, compared with 88.5 billion dirhams at the end of 2009.
First-half revenue from operations grew to 8 billion
dirhams, an increase of 2.1 billion dirhams from a year earlier, driven by
strong performance in aerospace, infrastructure, and oil and gas.
Mubadala is fully-owned by the Abu Dhabi government. Abu
Dhabi, capital of the United Arab Emirates is investing heavily in sectors such
as industry, tourism, infrastructure and real estate to diversify its economy
from oil.
Mubadala’s board approved plans to increase share capital to
15 billion dirhams from 5.5 billion dirhams by converting certain shareholder
rights.
“We will be converting some of the government loans into
equity and share capital which the board has approved,” Carlos Obeid, CFO of
Mubadala told Reuters by phone, adding the process could be completed by this
year end.
Mubadala owes the Abu Dhabi government 44 billion dirhams.
Operating income at its oil and gas segment rose 44 percent
to 3.6 billion dirhams, while operating income at its aerospace segment rose 20
percent to 2.5 billion dirhams.
While assets in aerospace and infrastructure grew 11 percent
and 44 percent respectively, it remained stable in the oil and gas sector.
Along with its international holdings, Mubadala also owns
stakes in local firms including UAE telecom operator du and developer Aldar
Properties.
In July, Mubadala Aerospace said it expected to seal
aircraft component leasing deals worth up to $500 million this year and was
eyeing acquisitions in the United States and Asia.
