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Mubadala Announces First Half 2012 Financial Results

Mubadala Development Company (Mubadala), the Abu Dhabi-based investment and development company, today released its interim financial statements for the first half of 2012. The results demonstrate continued growth of the business both in the UAE and internationally, and prudent risk management in challenging market conditions.

04 October 2012
Mubadala Announces First Half 2012 Financial Results

Asset base grows 10% to AED 195 billion in first half of 2012; revenues increase by 18% year on year to AED 16 billion, operating income increases to AED 2.2 billion from AED 402 million.

Mubadala Development Company (Mubadala), the Abu Dhabi-based investment and development company, today released its interim financial statements for the first half of 2012. The results demonstrate continued growth of the business both in the UAE and internationally, and prudent risk management in challenging market conditions.

Business highlights from across the Mubadala Group in the first half of 2012 included:

  • Semiconductors: GLOBALFOUNDRIES has quickly achieved scale as the second largest dedicated semiconductor foundry in the world, providing advanced manufacturing technology to more than 160 customers. Year to date the company shipped nearly half a million High-k Metal Gate (HKMG) wafers—far more than any other foundry—and began ramping production in its new Fab 8 facility in upstate New York.
  • Oil & Gas: Mubadala Petroleum’s South East Asia business continued to grow with higher than expected oil production in Thailand from the Jasmine Field, and finalization of development plans for the Manora Field. In the UAE, the Emirates LNG Terminal project remains on schedule.
  • Communications Technology: Yahsat successfully launched its second satellite, Y1B, which has since begun operations. As with the Y1A satellite launched last year, Y1B is providing a variety of government and commercial applications. In Africa, Etisalat Nigeria (EMTS), which is 30% owned by Mubadala, has seen an increase from 10.7 million to 13.1 million subscribers during the first half of this year.
  • Aerospace: Strata Manufacturing won a landmark contract from SABCA for the Airbus A350 XWB flap track fairings work package, adding to its existing Airbus flap track fairing work packages for the manufacturer’s fleet of A330, A340 and the A380 aircraft. SR Technics signed an engine maintenance service agreement with Spice Jet while ADAT signed a seven year integrated component solutions agreement with Ethiopian Airways to cover the Boeing 737NG fleet.
  • Real Estate & Infrastructure: The development of Al Maryah Island continued with the completion of Sowwah Square Office Towers 2, 3 and 4. In addition, the Galleria at the Sowwah Square development on Al Maryah announced a commitment from over 90 top global retail brands, corresponding to over 85% of the development’s available retail space.
  • Metals and Mining: EMAL achieved the milestone of 1.5 million tons of hot metal produced in just two and a half years since its commissioning in December 2009. Tabreed, the district cooling utility, increased its installed capacity across the GCC to 767,125 Refrigeration Tons, making it one of the world’s largest district cooling companies.
  • Renewable Energy: Masdar reported that the Valle 1 & 2 Concentrated Solar Power plants, part of its Torresol investment in Spain, achieved full operation with each plant providing enough power for 40,000 households. The Shams 1 solar power plant, the largest UAE solar project implemented by Masdar, finalized development and is on schedule to generate electricity.
  • Healthcare: Mubadala delivered further vital healthcare infrastructure for the UAE. The Imperial College London Diabetes Centre in Al Ain was officially inaugurated and the Wooridul Spine Centre in Dubai successfully completed the UAE’s first ever minimally invasive spine surgery to treat cervical disc diseases.

Mubadala CEO and Managing Director, Khaldoon Khalifa Al Mubarak, said: “Against a backdrop of global economic volatility, our interim financial results demonstrate ongoing delivery against our mandate. We continue to support Abu Dhabi’s economic diversification through investments in priority sectors, the development of social infrastructure, and the generation of economic returns for our Shareholder.”

A key part of Mubadala’s mandate remains the development of human capital and the creation of opportunities for present and future generations of Emiratis. During the period, Mubadala has enabled employees to undertake CFA program qualifications, the ATIC Al Nokhba scholarship, internships with Mubadala Aerospace and the Masdar Institute, and through its partnership with GE, the Leadership Acceleration for Business (LAB) program.

Financial highlights of the period ended June 30, 2012 included:

  • Revenues increased 18% to AED 16.0 billion compared to AED 13.5 billion for H1 2011, driven by revenues from GLOBALFOUNDRIES, Mubadala Petroleum, Mubadala Aerospace assets, and Yahsat.
  • Operating income grew to AED 2.2 billion for the period compared to AED 402 million for H1 2011. This increase was driven by contributions from GLOBALFOUNDRIES as well as increases in income from investments in equity accounted assets.
  • Total comprehensive income increased to AED 1.1 billion for the first half period compared to AED 198 million for H1 2011, driven by a combination of increased operating income, improvements in the fair value of investments and lower impairments.
  • Total assets increased by 10% from AED 177 billion as of the end of 2011 to AED 195 billion at the end of June 2012, driven by the growth of GLOBALFOUNDRIES, assets under Mubadala Healthcare and new investments.
  • Total equity increased by 18% from AED 106 billion as of the end of 2011 to AED 125 billion as of the end of June 2012, primarily due to additional cash contributions from Mubadala’s Shareholder, the Government of Abu Dhabi.
  • Total liabilities & leverage Total liabilities decreased to AED 70 billion compared to AED 71 billion as of the end of 2011. Mubadala’s gearing ratio decreased from 22% as of the end of 2011 to 19% at the end of June 2012, reflecting the increase in equity.
  • Mubadala’s credit ratings were recently reaffirmed amongst the top corporate ratings in the region at Aa3/AA/AA by Moody’s, S&P and Fitch, respectively.

For further information, please contact

Ben Craddock
Mubadala Development Company
E: bcrddock@mubadala.ae
M: +971 (0) 50 953 2304

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