"In 2011, Mubadala maintained overall operational profitability and reached an impressive number of milestones. As we look ahead to new markets and growing our global businesses, Mubadala is well positioned to deliver long term value and sustainable returns to its shareholder, stakeholders and partners," said Khaldoon Khalifa Al Mubarak, CEO and Managing Director. "While our financial investments’ performance were impacted by the volatility in the global marketplace during 2011, we continue to maintain a long-term financial investment perspective."
Financial highlights for the period ended 31 December 2011 included:
Revenues increased by 77% to AED 27.9 billion in 2011 compared to AED 15.8 billion in 2010, mainly due to the consolidation of the Advanced Technology Investment Company ( ATIC ). Revenue growth was also driven by sustained, high energy prices throughout 2011; the ongoing growth of Mubadala ‘s aerospace sector; and the consolidation of Tabreed, the publicly-owned district cooling company.
Total assets increased by 73% to AED 177 billion in 2011 compared to AED 102 billion in 2010, driven by the consolidation of ATIC , as well as an increase in the assets of Mubadala ‘s business lines in industry, capital, information and communication technology, healthcare, and aerospace among others.
Operating income was AED 1.2 billion in 2011 compared to AED 2.6 billion in 2010, reflecting additional investments in semiconductor manufacturing capacity as well as research and development expenditures.
Total comprehensive income attributable to the owner of the Group was a loss of AED 4.2 billion compared to a loss of AED 338 million in 2010. This was primarily driven by negative fluctuations in the fair market value of Mubadala ‘s financial investments, as well as a reduction in the market value of certain real estate holdings, both impacted by market volatility.
Total equity increased by 71% to AED 106 billion from AED 62 billion in 2010. The increase in equity, mainly due to the consolidation of ATIC and additional cash contributions, reflects the continuing commitment by Mubadala ‘s shareholder to its mandate and business objectives.
Liabilities and Leverage. In 2011 Mubadala ‘s debt to capitalization ratio remained at prudent levels, decreasing slightly from 30.2% to 29.6%, similar to the company’s debt to equity ratio declining from 43.4% to 42.0%.
Total liabilities increased to AED 71 billion in 2011 primarily due to the consolidation of ATIC and Tabreed, and the issuance of bonds by Mubadala . Mubadala ‘s gearing ratio decreased to 22% in 2011 from 25% in 2010, reflecting the strength of the company’s balance sheet.
Mubadala ‘s credit ratings remain among the top corporate ratings in the region at [Aa3/AA/AA] by Moody’s, S&P and Fitch.
"We are confident that the business and organizational strategy established by the Board of Directors during the last decade gives us a strong platform from which we can deliver even greater value to our stakeholders in the coming years," said Mr. Al Mubarak.
Operational highlights during 2011 included:
Oil & Gas: Dolphin Energy sold its full capacity and reached a significant milestone with the cumulative production of its three trillionth cubic foot of gas in December. In South East Asia, the Jasmine field once again exceeded annual production targets, producing its 40 millionth barrel of cumulative crude oil production.
Projects under development in Indonesia, the Gulf of Thailand, Kazakhstan and Oman performed according to plan, and the business acquired new interests in Malaysia, Tanzania and Vietnam.
Aluminium: Emirates Aluminium (EMAL) produced its millionth ton of aluminium in November 2011 following the full completion of Phase I in January 2010. Phase II, which will expand capacity by another 500,000 tons per annum, has been approved by EMAL’s Board of Directors. This will create new jobs and opportunities for the private sector.
Information, Communications and Technology: Yahsat successfully launched Abu Dhabi’s first satellite, Y1A, providing commercial and military services and bandwidth. Yahsat will launch its second satellite in Q2 2012.
Semiconductors: ATIC continued to invest to make GLOBALFOUNDRIES a world-leading semiconductor manufacturing company, resulting in GLOBALFOUNDRIES becoming the world’s second-largest foundry by revenue in Q4 2011. Operational enhancements at GLOBALFOUNDRIES during 2011 saw significant increases in production velocity for customers such as IBM and new products such as AMD’s ‘Llano’ processor enter the market.
Renewable Energy: Construction progressed on Shams I, the largest concentrated solar power facility in the region which in its first phase will have a capacity of 100 megawatts (MW). Masdar’s Torresol Energy inaugurated the Gemasolar 19.9 megawatt concentrating solar thermal power plant in Spain. The cutting edge plant provides 24 hours of uninterrupted power production by storing solar energy, providing renewable power production to a population of 25,000 households.
Aerospace: Strata, Mubadala ‘s advanced composite aero structures company, is a strategic Tier 1 supplier to both Boeing and EADS/Airbus of aircraft components. Strata saw its first aerospace components come off the Al Ain production line and delivered to customers in 2011.
Infrastructure: The new Zayed University campus in Abu Dhabi was officially inaugurated in September 2011, forming part of the capital’s world-class higher education infrastructure. Mubadala has now provided education facilities across the UAE for 20,000 students at Zayed University, the UAE University in Al Ain, the New York University temporary campus and Paris-Sorbonne University Abu Dhabi.
Healthcare: Building on the success of the original Imperial College London Diabetes Centre location in Abu Dhabi, a second facility in Al Ain was completed to accommodate demand. The Al Ain facility will support the Abu Dhabi Centre which is already running at full capacity.
In addition, the National Reference Laboratory opened to offer regional healthcare providers a one-stop solution for their lab diagnostic needs, while the Wooridul Spine Centre expanded its outpatient facility in Dubai.
Real Estate: The first tenants were announced for Sowwah Square, the heart of Abu Dhabi’s new Central Business District in 2011, including Deloitte, Clifford Chance, Al Tamimi, Latham & Watkins, Mubadala GE Capital and the Regulation and Supervision Bureau, an Abu Dhabi Government entity. Construction continues on the Rosewood Abu Dhabi, which is expected to open this year. Mubadala remains a long-term, significant investor in Aldar, which recorded a profit in 2011.
Mubadala also continued its development and training of UAE nationals through its partnerships with world-class institutions like GE and its operating assets. Over 600 Emiratis have been trained in advanced technology, some at GLOBALFOUNDRIES’ manufacturing facilities while others began studies in microelectronics as part of the Al Nokhba Scholarship for advanced technology. Strata’s workforce in Al Ain is growing to over one-third UAE nationals, trained in advanced aerospace composite manufacturing. The Masdar Institute of Technology continues its mission of educating Emiratis in the fields of renewable energy while also expanding its research in the areas of engineering, energy and microelectronics.
Mubadala Development Company ( Mubadala ) is a catalyst for the economic diversification of Abu Dhabi. Established and owned by the Government of Abu Dhabi, the company’s strategy is built on the creation of partnerships and on long-term investments that deliver strong financial returns and tangible social benefits for the Emirate of Abu Dhabi and that contribute to the growth and diversification of its economy.
Mubadala brings together and manages a multi-billion dollar portfolio of local, regional and international investments and partners with leading global organizations to operate businesses across a wide range of industry sectors. These include energy, aerospace, semiconductor technology, healthcare, information communications and technology, infrastructure, real estate and hospitality, and services ventures.