Reuters/Abu Dhabi


Mubadala, the Abu Dhabi government’s investment vehicle, expects its investment outlay in 2012 to be slightly lower than last year’s after saying its overall annual loss surged due to volatile global markets.
The state-owned fund, which has stakes in General Electric and private equity firm Carlyle, made an overall loss of 4.2bn dirhams ($1.14bn) in 2011, compared with a loss of Dh338mn in 2010, it said in a statement.
Mubadala, which set a capital and investment expenditure of $16.3bn for 2011, said that amount is expected to be lower in the current year.
“It is likely to be slightly less this year. It is still a significant amount,” chief financial officer Carlos Obeid said in a conference call, without specifying a figure.
Cash contribution from the government more than doubled to Dh28bn ($7.62bn) from 13bn a year-ago, Mubadala’s detailed financial statements showed.
Mubadala, which recently bought a $2bn stake in Brazilian conglomerate EBX Group, incurred a loss of Dh3.03bn from its financial investments compared with a profit of Dh355mn a year earlier, the company’s financial statements showed.
“While our financial investments’ performance was impacted by the volatility in the global market place during 2011, we continue to maintain a long-term financial investment perspective,” Khaldoon al-Mubarak, chief executive and managing director said.
Unlisted Mubadala saw its 2011 revenues surge 77% to Dh27.9bn due to high energy prices last year and consolidation of its semi-conductor unit Advanced Technology Investment Company (ATIC). This compared with revenues of Dh15.8bn in 2010.
Total assets also grew 73% to Dh177bn ($48.19bn) in 2011, Mubadala said.
Mubadala, one of few state-controlled vehicles to publish results, also owns stakes in local companies including indebted developer Aldar Properties and cooling firm Tabreed which it helped re-capitalise last year.
The fund, which holds a near-majority position in indebted Aldar, plans to transfer a 14% stake in the developer to secure a Dh500mn loan facility from Abu Dhabi Commercial Bank.
After the stake transfer, Mubadala holds about 35% of Aldar’s shares, Obeid said in the call.
Last month, Mubadala said it would buy a $2bn stake in Brazil’s EBX Group, providing fresh capital to the Brazilian conglomerate of billionaire Eike Batista.
“Mubadala will continue to assess geographical opportunities and multiple sectors, we are looking at other geographies and positions news to Mubadala,” Waleed al-Muhairy, chief operating officer, said on the call.
Mubadala also remains a supportive shareholder of Carlyle Group, viewing the upcoming IPO as a “positive step” and taking a long-term perspective of its investment in the private equity firm, he said.
Carlyle Group is eyeing a market valuation of $7.5bn to $8bn in an initial public offering, a source with knowledge of the situation told Reuters on Tuesday.
Mubadala initially bought a 7.5% stake in Carlyle for $1.35bn at the top of the cycle four years ago, valuing the private equity firm at $18bn.
The 10-year old firm’s total outstanding debt as of January this year is Dh38bn with Dh5bn due in the short-term, said Obeid, adding Mubadala has ample cash to cover it.
Still, Mubadala is engaging with banks, export credit agencies and the capital markets to secure the best funding to finance its projects, he added.
Abu Dhabi, which sits on most of UAE’s oil reserves, is also home to sovereign wealth fund Abu Dhabi Investment Authority.