Mubadala, an Abu Dhabi state-owned fund with a mandate to develop the emirate’s economy, on Thursday said its 2014 net profit fell 28.7% due to lower income from financial investments and impairments on oil and gas assets.
One of Abu Dhabi’s few state-controlled vehicles to publish results, Mubadala has interests in semiconductors, energy, aerospace and real estate among others, including General Electric and private equity firm Carlyle.
The fund said in a statement it made a net profit of 1.04 billion dirhams ($283.2 million) in 2014, down from 1.45 billion dirhams in the previous year.
Income from financial investments fell to 1.28 billion dirhams in 2014 from 3.36 billion dirhams the previous year, while Mubadala’s oil and gas provisions were worth 1.88 billion dirhams and came from joint venture blocks in the Middle East, Central and South East Asia, according to its statement.
Energy firms around the world have been booking impairments on assets because of the significant slide in oil prices in the second half of 2014. Abu Dhabi National Energy Co (TAQA), a fellow state-owned company, reported a big fourth-quarter loss on Wednesday due to such a provision.
Total comprehensive income also dropped heavily due to the revaluation of its financial investments portfolio, according to the statement, swinging to a loss of 190.8 million dirhams compared to income of 5.28 billion dirhams in 2013.
The fall in financial investment income and the impairments in oil and gas overshadowed a 5.3% increase in total revenue, which rose to 32.7 billion dirhams in 2014.
Mubadala’s total assets grew to 243.6 billion dirhams at the end of 2014, up from 223.8 billion dirhams in the prior year, aided by a further equity injection worth 18.37 billion dirhams from the Abu Dhabi government.