Mubadala Investment Company, the Abu Dhabi-based investment company, has posted an operating income of Dh5.5 billion ($1.5 billion) for the first half of the year, up 40 per cent compared to Dh3.3 billion for the same period in 2016.

The increase was primarily driven by petrochemicals and refining, defence services, and aluminium manufacturing, a company statement said.

The announced results incorporate the Mubadala Development Company (MDC) and International Petroleum Investment Company (IPIC) financial statements from the first half of 2017.

Khaldoon Khalifa Al Mubarak, Group chief executive officer and managing director, said: “The results from the first half of 2017 reflect the strength and scale of Mubadala Investment Company’s diversified global portfolio and robust balance sheet. We will continue to integrate, optimize and grow the company’s assets under our global business platforms, to create and realize maximum financial and strategic returns to support diversification of the economy of Abu Dhabi and the country.”

Revenues were Dh83.4 billion, compared to Dh72.9 billion for the same period in 2016 due to strong performance and higher revenues across Mubadala’s four investment platforms, with the primary drivers being the upstream and integrated oil and gas, semiconductors, and aerospace sectors.

Total assets were Dh465.5 billion as of 30 June 2017, compared to Dh449.7 billion at the end of 2016, primarily due to an increase in the value of financial investments; a US$ 2.1 billion bond raised by Nova Chemicals which was utilized post-June 2017 for the acquisition of a Geismar, Louisiana Olefins plant; and dividends from financial investments.

Profit was Dh4.2 billion, compared to a negative Dh4.7 billion for the same period in 2016, while Total Comprehensive Income was Dh6.8 billion against a negative Dh5.4 billion for the same period 2016, led by improved operating income, gains from financial investments and favourable currency movements.

Carlos Obeid, chief financial officer, said: “In the first half of 2017, we worked to integrate the two portfolios under the Mubadala Investment Company.  We managed our costs prudently, while monetizing mature assets and growing our profit as we reduced our overall leverage.” – TradeArabia News Service