Mubadala Investment Company Announces Half-Year 2018 Financial and Operational Highlights
Mubadala increases scale and diversifies portfolio in H1 2018;
Abu Dhabi Investment Council joins the Group
Group reports Profit of AED 10.9 billion and Total Comprehensive Income of AED 10.6 billion
ABU DHABI (UAE) – Today, Mubadala Investment Company of Abu Dhabi announced its unaudited, pro forma half-year 2018 financial and operational highlights.
Group Chief Executive Officer and Managing Director, Khaldoon Khalifa Al Mubarak, said: “In the first half of the year, we continued to deploy capital in new sectors and geographies, in line with our long-term strategy. We also monetized select assets at good valuations, to deliver financial returns. And, the decision to bring the Abu Dhabi Investment Council into the Mubadala Group has increased the scale and breadth of our portfolio.”
Pro forma financial highlights for the half-year period ending June 30th 2018*, include:
- Profit and Total Comprehensive Income were AED 10.9 billion and AED 10.6 billion respectively, driven by strong public equities performance and operating companies in the Petroleum and Petrochemicals platform, including Compañía Española de Petróleos (CEPSA), which just this week announced its intention to pursue a public offering in Spain.
- Total Assets, including consolidated ADIC holdings, were AED 832 billion at the end of H1 2018.
- Total Equity was AED 583 billion at the end of H1 2018.
Mubadala’s Chief Financial Officer, Carlos Obeid, said: “Leverage remains well-balanced across the portfolio and cash flow is solid.”
Obeid also noted that historically reported figures such as revenue and net operating income are no longer meaningful or indicative of performance for a group as diverse, dynamic and global as Mubadala. As a result, Mubadala Investment Company pro-forma results will report on bottom line metrics such as profit and total comprehensive income, in addition to balance sheet metrics, such as total assets and shareholder equity.
In the first half of 2018, Mubadala’s responsible, long-term partnership approach delivered a number of operational highlights:
Aerospace, Renewables & ICT
- Yahsat’s third satellite, Al Yah 3, prepared to start delivering commercial services. The new satellite, launched in January, will expand Yahsat’s Ka-band coverage to 19 additional markets across Africa covering 60% of the population and marks Yahsat’s first entry into Brazil where 95% of the population will have access to its satellite broadband services.
- Masdar inaugurated the first stage of the 800MW Phase 3 Dubai Electricity and Water Authority (DEWA) project in Dubai, a high profile project of significant importance for both Masdar and DEWA, the project’s main customer.
- Strata Manufacturing PJSC (Strata) announced a new contract award with Boeing to manufacture composite empennage ribs for Boeing’s new 777X airplane.
Alternative Investments & Infrastructure
- Mubadala announced its intent to create a $400 million venture fund to invest in leading European technology companies. The fund will be managed by Mubadala Ventures, the venture capital arm of Mubadala. SoftBank Group will participate as a strategic investor. The fund will target founder-led, high growth technology companies with global scale and impact.
- Mubadala announced the sale of its consortium’s majority interest in EMI Music Publishing to Sony Corporation (Sony) at an enterprise value of $4.75 billion. This acquisition represents Sony’s commitment to its writers and artists as well as its commitment to the music business more broadly. The closing of the transaction is subject to certain closing conditions, including regulatory approvals.
- As a part of Cleveland Clinic Abu Dhabi’s multi-organ transplant program, physicians accomplished another historic medical milestone in the UAE by performing three transplant surgeries from a deceased donor on the same day, including the UAE’s first double-lung transplant in February.
Petroleum & Petrochemicals
- CEPSA sealed important agreements to expand its upstream business and add additional oil and gas production. In Abu Dhabi, ADNOC awarded the company a 20% stake in a 40-year concession containing the SARB and Umm Lulu fields for an initial participation fee of $1.5 billion. In Algeria, CEPSA signed a new concession agreement for the operation and redevelopment of the Rhoude el Krouf (RKF) oilfield, increased its stake in the Bir el Msana (BMS) oilfield and, with its partners Sonatrach and Total, put into production the Timimoun gas field.
- Total Petrochemicals & Refining USA Inc., Borealis and NOVA Chemicals announced they have started operations in a joint venture, Bayport Polymers LLC (Bay-Pol), to significantly expand petrochemical production in the U.S., after receiving all required regulatory approvals.
- Mubadala Petroleum has completed the acquisition from Italy’s Eni of a 10 percent participating interest in the offshore Shorouk Concession in Egypt, which contains the Zohr gas field.
Technology, Manufacturing & Mining
- Emirates Global Aluminium passed 30 million tonnes of production since commencing operations in 1979. In April, it paid the highest dividend in the history of the company, AED 2 billion to shareholders.
- In partnership with AMERRA Capital Management, Mubadala acquired majority stakes in two European fish farming companies – Nireus SA and Selonda SA – through Andromeda Group. The combined entities are among the world’s largest producers of farmed fish.
- AMD’s continuing roll out of high grade products saw the launch of the Ryzen, Epic and Radeon products, offering major improvements over previous generations. AMD was one of Nasdaq’s fastest growing stocks during H1 2018.
*Total Profit and Total Comprehensive Income are attributable to the owner of the Group.