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Mubadala income soars four-fold to Dh53 billion

Mubadala Investment Company, an Abu Dhabi-based sovereign investor, reported on Thursday that its total income jumped more than four-fold to Dh53 billion in 2019 from Dh12.5 billion in the previous year, spurred by the fund's public equities portfolio as well as assets across various sectors.
The sovereign fund, which deployed Dh68 billion in 2019 across various classes and sectors, said in a statement that a strong liquidity position and a diverse portfolio would help it tackle the challenges posed by the coronavirus outbreak and weak oil prices. The fund's assets under management rose 1.5 per cent to Dh853 billion at 2019-end.
"All of these position us very well to handle this very extraordinary situation in the best way possible," Group Chief Executive Khaldoon Khalifa Al Mubarak said.
Responsible deployment of capital, strong partnerships and agile investing remain at the core of Mubadala's strategy. And now, as the world faces a global pandemic, we are working across our portfolio in partnership with communities which have been hit hard by Cövid-19", said Al Mubarak.
He said 2019 was a remarkable year for Mubadala. ""Not only did we deliver strong financial results, but we also continued to grow our presence across multiple asset classes in key sectors and markets to help further diversify Abu Dhabi's economy."
Carlos Obeid, chief financial officer, said in 2019, the fund continued to manage balance sheet carefully, with a prudent debt-to-equity ratio of 11.8 per cent. With a strong cash position, we will continue to look for opportunities in public funds and private assets as we manage through this complex economic cycle, while remaining a long-term, patient investor."
The company said it realised Dh63 billion in 2019 from the "monetisation of mature assets and distributions from investments locally and abroad."
In 2019, Mubadala sold a 38.5 per cent stake in Spanish oil refiner Cepsa to the Carlyle Group. The transaction was based on an enterprise value for Cepsa of 44.1 billion dirhams.
It also exited its investment in the US chipmaker Advanced Micro Devices, generating proceeds of Dh9.9 billion and also sold its stake in Brazil's Restaurant Brands International, generating proceeds of Dh4.4 billion. The state fund also sold a 10.22 per cent stake in telecoms operator du resulting in a gain of Dh2 billion.
Mubadala, which owns Cleveland Clinic Abu Dhabi, in 2019 bought Amana Healthcare, a provider of long-term care, specialised rehabilitation, and home healthcare services.
The fund said its portfolio spans over 50 countries, in both emerging and developed markets with 43 per cent comprised of direct and indirect investments in private equity, while 21 per cent in public markets and 11 per cent in real estate and infrastructure, among others.
- issacjohn@khaleejtimes.com