Mubadala Releases Full Year 2014 Financial and Operational Results
- Revenues increase to AED 32.7 billion with profit of AED 1 billion as operating income rises to AED 4.3 billion and assets grow to AED 243.6 billion
- Major operational milestones and continued growth across global business platforms fuel diversification strategy
Mubadala Development Company (Mubadala), the Abu Dhabi-based investment and development company, today announced its full year audited financial and operational results for 2014.
Mubadala Group CEO and Managing Director, Khaldoon Khalifa Al Mubarak, said:
“Mubadala’s 2014 financial results reflect a resilient operating performance with one billion dirhams of profit, revenues increasing across all four of our global platforms and operating income more than doubling compared to last year. Our delivery of major priorities - including Cleveland Clinic Abu Dhabi, Emirates Global Aluminium, and Al Maryah Island, the home of Abu Dhabi Global Market - furthers the emirate’s economic vision of greater diversification and opportunity.”
Business highlights from across the Mubadala Group in 2014:
- Emirates Global Aluminium was formally incorporated as a stand-alone business, creating a new industrial champion for the UAE, with a total annual production of 2.4 million tons.
- Mubadala and Tawazun formed Emirates Defence Industries Company, the integrated national defense services and manufacturing platform for the UAE.
- Strata, the Al Ain-based composite aerospace manufacturing company, strengthened its Tier 1 status becoming the sole supplier to Airbus on its A330 Aileron Assembly program, while Boeing approved its first 787 parts received from the company.
- Healthpoint, a world-class, fully-integrated multispecialty hospital at Zayed Sports City in Abu Dhabi that commenced opening in September 2013, had seen over 132,000 patient visits by the end of 2014.
- Construction concluded on Cleveland Clinic Abu Dhabi, the world-class 364-bed multispecialty hospital developed to address the region’s most pressing healthcare needs, with most services available by the end of May 2015.
- Yahsat had 34,000 global subscribers for its satellite broadband service, Yahclick, at the end of 2014.
- Masdar signed a $125 million agreement with Oman's Rural Areas Electricity Company to build the first large-scale wind farm in the GCC, and took a 35% stake along with Norway’s Statoil and Statkraft in the Dudgeon Offshore Wind Farm project, set to be one of the largest in the UK with the potential to power 410,000 homes. Masdar’s portfolio of companies now supplies close to 1GW of clean energy to local and international markets.
- Al Maryah Island became home to Abu Dhabi Global Market, the international financial center, and construction began on Al Maryah Central, the 2.3 million square foot shopping center located at the core of Al Maryah Island.
- Mubadala Petroleum commenced oil production at the Manora Oil Development joint venture offshore Thailand and announced a multi-trillion cubic feet gas discovery in Malaysia Block SK320. The company’s total working interest production averaged 400,000 barrels of oil equivalent per day across its international portfolio.
- GLOBALFOUNDRIES announced a strategic collaboration with Samsung to deliver capacity at 14 nanometer (nm), one of the industry’s most advanced nodes, as Fab 8 in Malta, New York began ramping production for customers.
- Mubadala GE Capital issued an inaugural $500 million bond under its newly established Global Medium Term Note (GMTN) program. Fitch and Moody’s assigned the company with ratings of A and Baa2 (both with stable outlook) respectively.
Financial highlights for the period ended 31 December 2014:
- Revenues were AED 32.7 billion compared to AED 31 billion in 2013 primarily due to higher semiconductor, information & communications technology, hydrocarbons, real estate, renewables and healthcare related revenues.
- Operating income was AED 4.3 billion compared to AED 2 billion in 2013 driven by improved income from investment in equity accounted investees, primarily Emirates Global Aluminium, and disposals during the period.
- Profit attributable to the owner of the Group was AED 1 billion compared to AED 1.5 billion in 2013 primarily due to lower income from financial investments and higher impairments relating to Mubadala’s Oil & Gas assets.
- Total assets were AED 243.6 billion as at the end of 2014 compared to AED 223.8 billion as at the end of 2013.
- Total equity was AED 175.7 billion as at the end of 2014 compared to AED 157.5 billion as at the end of 2013, primarily due to additional contributions from our shareholder, the Government of Abu Dhabi.
- Total liabilities & leverage. Total liabilities were AED 68 billion as at the end of December 2014 compared to AED 66.3 billion as at the end of 2013. Mubadala’s gearing ratio decreased from 12% at the end of 2013 to 9% at the end of 2014.
- Mubadala’s credit ratings are amongst the top corporate ratings globally at Aa2/AA/AA by Moody’s, Standard & Poor’s and Fitch, respectively. In 2014, Moody’s upgraded Mubadala’s long-term issuer rating to Aa2 from Aa3, to bring the company’s credit rating in line with Abu Dhabi’s sovereign rating.