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Mubadala Posts Comprehensive Loss of $86 Million for 2010

Mubadala Development Co., an Abu Dhabi government-owned investor with stakes in Carlyle Group and General Electric Co. (GE), posted a comprehensive loss of 315 million dirhams ($85.8 million) for 2010, because of declines in “mark- to-market” investments.

The loss followed a comprehensive profit of 9 billion dirhams in 2009, according to an e-mailed statement today. Net income fell to 1.1 billion dirhams, from 4.6 billion a year earlier. Mubadala said last year its 2009 profit attributable to shareholders was 4.79 billion dirhams, after reporting a loss of 11.44 billion in 2008.

Abu Dhabi, home to more than 7 percent of the world’s proven crude reserves, is seeking to diversify from oil by investing in industries such as real estate and aerospace. Waleed Al Mokarrab Al Muhairi, Mubadala’s chief operating officer, said Oct. 27 that emerging markets represent a “gaping hole” for the company.

Mubadala said March 10 that it’s in talks with state-owned Dubai Aluminium Co. to expand their partnership. Gulf News reported that day, citing Sheikh Hamdan Bin Rashid Al Maktoum, Dubai’s deputy ruler, that Mubadala has offered to buy a stake in Dubai Aluminium to create a new holding company.

“All options are on the table,” Al Muhairi said today, responding to questions on the matter.

Mubadala agreed in January to buy convertible bonds valued at 2.8 billion dirhams from Aldar Properties PJSC (ALDAR), as part of a government bailout for Abu Dhabi’s biggest developer.

Higher Revenue

Revenue rose 22 percent to 16 billion dirhams as the company gained from its aerospace, infrastructure and oil and gas businesses, according to today’s statement.

“Our revenue mix has increased its diversification,” Al Muhairi said on a conference call. “We’ve seen a decrease in the relative contribution of the oil and gas portfolio and an increase in the aerospace portfolio.”

The company said in November it was in talks to complete the transfer of a 5 percent stake in sports-car maker Ferrari SpA to Fiat SpA. Mubadala earned a profit from selling the stake, Al Muhairi said today.

The company’s long-term debt is 24 billion dirhams and short-term debt stands at about 2 billion, Chief Financial Officer Carlos Obeid said today.

To contact the reporter on this story: Vivian Salama in Dubai at vsalama@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net

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