Mubadala reports 2011 losses of $1.14 billion

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Mubadala, the Abu Dhabi government’s investment arm said it expected a significant drop in its 2012 investment outlay compared to last year’s losses due to volatile global economic situation.

The state-owned fund reported on Thursday an overall loss of US$1.14 billion for 2011, recording a sharp drop in the value of its financial investments and real estate portfolio.

Mubadala, which holds stakes in General Electric and private equity firm Carlyle, revealed in a statement it made an overall loss of AED4.2 billion ($1.14bn) in 2011, compared with a loss of AED338 million ($92.02m) a year before.

“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 in the statement.

The company’s financial statements also showed Mubadala incurring a loss of AED3.03 billion ($820m) from its financial investments compared with a profit of AED355 million ($96.65m) a year earlier.

The Abu-Dhabi’s state fund also witnessed its 2011 revenues surge 77% to AED27.9 billion ($7.60bn) compared with revenues of AED15.8 billion ($4.30bn) in 2010 thanks to high energy prices last year and consolidation of Advanced Technology Investment Company (ATIC), its semi-conductor unit.

Mubadala statement added that total assets also grew 73% to AED177 billion (US$48.19 billion) in 2011.

Mubadala, a struggling state-controlled vehicle, also owns stakes in local companies including a near-majority position in debt-prone developer Aldar Properties and troubled cooling firm Tabreed.

The Abu Dhabi’s wealth fund plans to transfer a 14% stake in the developer in its bid to obtain a loan facility from Abu Dhabi Commercial Bank .

Mubadala said last month it would buy a $2 billion stake in Brazil’s EBX Group to provide fresh capital to Eike Batista, billionaire president of Brazilian conglomerate EBX Group.

Abu Dhabi Investment Authority (ADIA) is the other sovereign wealth fund of Abu Dhabi.

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