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Three reasons why Mubadala enjoyed positive results in 2017
The investment firm’s annual profits rose by 11.5 percent
Mergers: In February of 2017, the company merged with another Abu-Dhabi-based sovereign wealth fund, the International Petroleum Investment Company (IPIC) – a fund that was established in the early 1980s to focus on the global energy market. The new entity had $125bn in total assets, with increased exposure to downstream petrochemical industries – helping to boost Mubadala’s revenues to $45.1bn.
Diversification: With the acquisition of IPIC, Mubadala Investment Company has restructured the organisation to focus on four key pillars: petroleum and petrochemicals; alternative investments and infrastructure; technology, manufacturing and mining, and aerospace. “All four global platforms contributed to our strong financial and operational results,” said group CEO, Khaldoon Khalifa Al Mubarak.
Divestment: Mubadala’s total comprehensive income doubled to AED10.3bn ($2.8bn) in 2017, which was fuelled in no small part by a series of divestments of “mature assets” as well as the increase in value of financial holdings. During the last reporting period, Mubadala sold a 40 percent stake in district-cooling business Tabreed for AED2.8bn as well as shares in chipmaker AMD for AED4.18bn.
