Mubadala Development 2014 Profit Drops 29% as Impairments Surge

Mubadala Development Co., the Abu Dhabi investment fund, posted a 29 percent decline in 2014 profit after lower income from financial investments and increased impairments on its oil and gas assets.

Net income was 1.035 billion dirhams ($282 million), compared with 1.453 billion dirhams a year earlier, the United Arab Emirates company said in an e-mailed statement Thursday.

Lower oil and gas prices prompted Mubadala to reduce the value of its oil and gas assets in the Middle East, central Asia and Southeast Asia. Impairments increased to 2.2 billion dirhams in 2014 from 904.5 million dirhams. Brent crude oil prices fell 49 percent during the second half of last year as new production and the decision by the Organization of Petroleum Exporting Countries not to cut output created a supply glut.

Earnings from financial investments dropped to 1.3 billion dirhams from 3.4 billion dirhams in 2013, Mubadala said. Finance expenses fell to 1.02 billion dirhams from 1.4 billion dirhams.

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