ABU / WAM
Mubadala Development Company (Mubadala), the Abu Dhabi-based investment and development company, on Thursday announced its full year audited financial and operational results for 2015, showing that the revenues increased to AED 34.1 billion as profit remains stable at AED 1.2 billion.
Group CEO and Managing Director, Khaldoon Khalifa Al Mubarak, said: “Mubadala managed through the significant macroeconomic volatility of 2015 to mark moderate increases in revenue and profit. In addition, we achieved a number of major milestones for Abu Dhabi, including the opening of Cleveland Clinic Abu Dhabi, the continued development of Al Maryah Island, and strengthening our base in key global industries such as aerospace and information technology.”
He further commented: “We remain resolutely focused on prudent cash management and cost control, as well as active oversight of our assets, in order for us to navigate the anticipated challenging market conditions of 2016 and beyond.”
Business highlights from across the Mubadala Group in 2015:
Mubadala created a joint venture with global commodities leader, Trafigura, to invest in base metals in the mining sector. This partnership saw Mubadala acquire a 50 percent stake in Trafiguraâ€™s flagship mining operation, Minas de Aguas Teidas (MATSA), in southern Spain.
GLOBALFOUNDRIES successfully closed its proposed acquisition of IBMâ€™s microelectronics business. The transaction included IBMâ€™s two wafer fabrication facilities, world-class technologists and IP in the form of over 16,000 patents. GLOBALFOUNDRIES also became IBM’s exclusive supplier of 14 nanometer (nm) and 10nm server chips.
Mubadala, China Development Bank Capital and Chinaâ€™s State Administration of Foreign Exchange launched a $10 billion global investment fund, which will target investments in China and UAE across multiple sectors and asset classes.
Cleveland Clinic Abu Dhabi commenced operations in March and as of the end of 2015, completed over 58,000 appointments and 2,300 surgeries, reducing the need and expense of patients to travel abroad for healthcare. The hospital now has 30 specialties and over 3,000 employees working on its Al Maryah Island campus.
Strata, the Al Ain-based composite aerostructures manufacturer, was awarded a contract to manufacture Airbus A350-1000 Flap Support Fairings until 2023, and Boeing delivered the first 787 Dreamliner to Etihad Airways with advanced composite components made by Strata. During the year Strata proudly recorded that 86% of its Emirati workforce were women.
Nibras Al Ain Aerospace Park, the joint development with Abu Dhabi Airport Company, grew its tenant base, with over 85% of Phase I now complete and over 60% of plots occupied. The Nibras Al Ain Aerospace Park is a key catalyst for establishing a global aerospace hub and ecosystem in the UAE.
Al Maryah Island, master planned and developed by Mubadala, saw key developments beyond Cleveland Clinic Abu Dhabi, including: Abu Dhabi Global established its headquarters on Al Maryah, making the island Abu Dhabiâ€™s International Financial Center; Commencement of construction on Al Maryah Central, the new 3.1 million sq. ft. mixed-use retail, hospitality, entertainment and residential development; Major construction activities completed on the new Four Seasons Abu Dhabi, with first guests arriving in May 2016.
Mubadala and IBM established Cognit, a joint venture to provide IBM’s cognitive computing system, Watson, to organizations in the Middle East and to strengthen the UAE’s position as a regional ICT hub.
Mubadala Petroleum commenced production on time and on budget at Nong Yao, its third operated oil field in Thailand. Aggregate working interest production of 33,300 barrels of oil per day from the three operated fields has propelled Mubadala Petroleum to become the second largest black oil producer in Thailand.
Tafila Wind Farm in Jordan, the first commercial utility-scale wind power project in the Middle East, became operational. The 117 megawatt wind farm, which currently powers 83,000 homes and is partially owned by Masdar, has helped increase Jordanâ€™s total power capacity by 3%.
The International Renewable Energy Agencyâ€™s global headquarters in Masdar City was inaugurated, which alongside GE, Siemens and Lockheed Martin is contributing to Masdar Cityâ€™s growing ecosystem focused on sustainability, research, business and education.
Mubadala Group CFO, Carlos Obeid, said: “Good operational results across all our global business platforms coupled with our stable financial performance in a challenging and volatile market underlines the benefits of Mubadalaâ€™s diversified portfolio.”
He further commented: “We continue to closely manage our portfolio, pursue monetization opportunities for our mature assets and make targeted investments that advance our four business platforms.”
The financial highlights for the period ended 31 December 2015, show that revenues were AED 34.1 billion compared to AED 32.7 billion in 2014, primarily due to higher semiconductor, information and communications technology, healthcare and real estate and infrastructure related revenues.
Operating income was AED 2 billion compared to AED 4.3 billion in 2014, driven primarily by higher cost of sales of goods and services during the period. Profit, which is attributable to the Owner of the Group, was AED 1.2 billion compared to AED 1 billion in 2014, while total comprehensive income was a AED 1.3 billion loss compared to a AED 0.2 billion loss in 2014.
Total assets were AED 246.4 billion as at the end of 2015 compared to AED 243.6 billion as at the end of 2014. Total equity was AED 174 billion as at the end of 2015 compared to AED 175.7 billion as at the end of 2014. Total liabilities & leverage. Total liabilities were AED 72.4 billion as at the end of December 2015 compared to AED 68 billion as at the end of 2014. Mubadalaâ€™s gearing ratio increased from 9% at the end of 2014 to 14% at the end of 2015.
Mubadalaâ€™s credit ratings are among the top corporate ratings globally at Aa2/AA/AA by Moodyâ€™s, Standard & Poorâ€™s and Fitch, respectively.