Bahrain’s Mumtalakat Full-Year Loss Widens on Impairments

Bahrain Mumtalakat Holding Co. BSC, the sovereign wealth fund that appointed a new chief executive officer in March, said full-year loss widened as provisions for impairments increased.

Loss attributable to the shareholder of the parent was 335.8 million dinars ($891 million) in 2011 compared with 265.1 million dinars a year earlier, according Mumtalakat’s financial statement. Impairment losses climbed to 316.5 million dinars from 191.2 million dinars.

Mumtalakat, established in 2006, holds stakes in more than 35 companies including Gulf Air, Aluminium Bahrain BSC, Bahrain Telecommunications Co., and McLaren Automotive Ltd. Mahmood Al Kooheji, chairman of Aluminium Bahrain, was appointed the CEO in March, replacing Talal al-Zain. The fund injected 400 million dinars into Gulf Air in 2010 as the national carrier restructures amid a slump in business.

“Several restructuring initiatives were undertaken at Gulf Air to reduce operating losses,” according to a separate statement on the company website. “However, the regional geo-political situation and higher fuel costs significantly affected the operations of Gulf Air and resulted in a higher operating loss versus the prior year.”

Mumtalakat’s revenue increased 8.4 percent to 1.29 billion dinars last year, while gross profit rose 5.5 percent to 140.4 million dinars, helped by income from Aluminium Bahrain BSC. The fund had assets of 4.22 billion dinars at the end of 2011 compared with 5.07 billion dinars a year earlier.

The company raised $750 million from the sale of bonds in 2010. The yield on the 5 percent notes maturing June 2015 has fallen 94 basis points this year to 4.8 percent on July 6, according to data compiled by Bloomberg.

“We remain in a strong financial position and moving forward Mumtalakat will continue to play a vital role in the growth and diversification of Bahrain’s economy, with future investments and partnerships likely to focus on the kingdom and the region,” Al Kooheji said in the statement.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE