Mubadala posts sharp loss

ABU DHABI: Abu Dhabi’s investment fund Mubadala has posted a 52-percent drop in profits for the first half of 2015, hit hard by the slide in global oil prices.
The group tasked with diversifying the Gulf state’s energy-dependent economy has a global investment portfolio that includes US-based technology giant GE, EMI Music Publishing, and Italy’s Piaggio Aerospace.
Mubadala said profits in the first six months of the year stood at AED625.5 million ($170.4 million) compared with 1.3 billion dirhams in the same period in 2014.
Revenues came in at 15.9 billion dirhams, less than one percent lower from the year before.
“Higher semiconductor, information and communications technology, health care, real estate and industry-related revenues were offset by lower aerospace and energy-related revenues,” it said in a statement.
Mubadala said an increase in income from financial investments was offset in part by lower operating revenues.
“Despite challenging market conditions such as volatile commodity prices impacting certain businesses in our portfolio, the diversity of our asset base and prudent management enabled us to record positive results,” said chief financial officer Carlos Obeid.
“As the economic situation remains unclear, we continue to carefully manage our operations and balance sheet,” he said.
Mubadala’s vast portfolio also includes stakes in private equity firm Carlyle, telecoms company Etisalat Nigeria and gas firm Emirates LNG.
Abu Dhabi sits on the bulk of the oil wealth of the United Arab Emirates.
World oil prices have roughly halved in value since a year ago, plagued by a global supply glut caused largely by cheaper production of US oil following extraction from shale rock.