Mubadala Releases Full Year 2016 Financial and Operational Results
Revenues reach AED 31.5 billion; Profits increase to AED 3.3 billion.
2016 performance driven by financial investments as well as revenue growth from semiconductor, aerospace and healthcare companies.
ABU DHABI (UAE) - Mubadala Development Company (Mubadala), the Abu Dhabi-based investment and development company, today published its full year 2016 audited financial results, and operational highlights from the period. The results reflect the last operational year for Mubadala Development Company before it evolves, in May 2017, into Mubadala Investment Company.
Group CEO and Managing Director Khaldoon Khalifa Al Mubarak said: “Our strong financial performance in 2016 reflected our diversified portfolio, with results from opportunistic investments in strategic sectors and prudent monetization of mature assets. In line with our long-term strategy, we continue to develop and grow world-class companies in key sectors, contributing to the UAE’s economic diversification. We are well-positioned to build on the legacies of both Mubadala Development Company and IPIC as we look ahead to operating as a newly merged entity in May of 2017.”
Operational highlights from 2016 include:
- Dubai Electricity and Water Authority appointed a Masdar-led consortium as the selected bidder for the 800 MW third phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, the largest single-site solar project in the world.
- Mubadala sold an 80% stake in SR Technics, the Swiss aircraft-maintenance service provider, to HNA Aviation, the China-based global enterprise group.
- GLOBALFOUNDRIES announced a new $500 million Research & Development program with New York State’s SUNY Polytechnic Institute to accelerate next generation chip technology development. The company further expanded its presence globally across all of its sites to meet growing customer demand, including building on its operations in China with plans for a new 300mm fab using production-proven technology from its Singapore site.
- Mubadala announced plans to acquire a 20% interest in Investcorp, a global provider and manager of alternative investment products, with a 10% stake acquired in July 2016, and the remaining interest acquired in early 2017.
- Strata was awarded two contracts valued at more than $1 billion to manufacture additional composite components and complete major assemblies for Airbus. It also won a contract to build the vertical fin for Boeing’s 787 Dreamliner.
- Mubadala opened a third state-of-the-art branch of Imperial College London Diabetes Centre in Zayed Sports City to meet growing demand. During the year, ICLDC recorded 275,000 appointments, with 300,000 appointments handled by Healthpoint Hospital.
- Cleveland Clinic Abu Dhabi performed more than 11,700 surgeries and procedures, reducing the need for patients to travel abroad for complex care.
- Mubadala continued to develop Al Maryah Island, opening the Four Seasons Hotel Abu Dhabi, adding 200 five-star rooms to Abu Dhabi’s business and lifestyle destination. Mubadala Capital also relocated to Abu Dhabi Global Market Square on the island.
- Mubadala acquired a 2% stake in British Petroleum as part of the agreement for BP to hold a 10% interest in Abu Dhabi Company for Onshore Petroleum Operations.
- Mubadala and GE successfully completed the sale of 98% of the Mubadala GE Capital portfolio after GE’s decision to exit from its global capital business.
- Mubadala successfully issued a $500 million 7-year bond that was ten-times oversubscribed under its GMTN program, with a coupon of 2.75%.
Mubadala Group CFO, Carlos Obeid, said: “As planned, we prudently managed our portfolio in 2016 to reduce our leverage, maintain a strong cash position and monetize assets at the right time. The result will be a strong balance sheet as we look ahead to starting operations in May as Mubadala Investment Company.”
Financial highlights for the period ending 31 December 2016:
- Revenues were AED 31.5 billion compared to AED 29.7 billion in 2015, primarily due to higher revenues from companies within Mubadala’s semiconductor, aerospace and healthcare portfolios.
- Operating Income was AED 2.6 billion compared to AED 2 billion in 2015, driven in part by strategic divestments from mature assets.
- Profit was AED 3.3 billion in 2016 compared to AED 1.2 billion in 2015, while Total Comprehensive Income was AED 4.1 billion compared to a AED 1.3 billion loss in 2015 primarily due to higher income from financial investments.
- Total assets were AED 248.3 billion at the end of 2016 compared to AED 246.4 billion at the end of 2015.
- Total equity was AED 185 billion at the end of 2016 compared to AED 174 billion at the end of 2015.
- Total liabilities were AED 63.3 billion at the end of December 2016 compared to AED 72.4 billion at the end of 2015. Mubadala’s gearing ratio decreased from 14% at the end of 2015 to 11.2% at the end of 2016.
- Mubadala’s credit ratings were reaffirmed by Moody’s, Standard & Poor’s and Fitch to be among the highest corporate ratings in the world at Aa2/AA/AA respectively.
The merger of Mubadala Development Company with the International Petroleum Investment Company (IPIC) is proceeding to schedule, and the new entity, Mubadala Investment Company, is due to commence operations in May 2017. The new entity will have an asset base of $125 billion.
Mubadala Investment Company will operate across four investment platforms: Petroleum & Petrochemicals; Technology, Manufacturing & Mining; Aerospace, Renewables, Information & Communications Technology; and Alternative Investments & Infrastructure.