Mubadala results show value of aerospace division
Aerospace and engineering services, including the Al Ain-based composite aircraft parts manufacturer Strata, contributed 22% to last year's group revenues for the Mubadala Development Company (MDC) – the Abu Dhabi government-owned investment company has confirmed.
Mubadala said its 2015 operations produced a profit rise of 12.3 per cent on 2014 amid higher revenues from activities including oil and gas, semiconductors, and aerospace and engineering services despite challenging global economic conditions.
Net profit attributable to the group’s owner rose to AED 1.16 billion in 2015 compared to AED 1.03bn in 2014, the company said. Operating income was AED 2 billion compared to AED 4.3 billion in 2014, “driven primarily by higher cost of sales of goods and services during the period.” Revenues increased over 4 per cent to AED 34.05bn from AED 32.6bn a year earlier, while total assets grew to AED 246.3bn versus AED 243.6bn.
The company’s total liabilities at the end of 2015 were AED 72.3bn compared to AED 67.9bn at the end of 2014 after it raised its gearing ratio to 14 per cent from 9 per cent in the same period.
“Mubadala managed through significant macroeconomic volatility of 2015 to mark moderate increases in revenue and profit," said Khaldoon Al Mubarak, Mubadala’s group chief executive and managing director (right)
“We remain resolutely focused on prudent cash management and cost control, as well as active oversight of our assets, in order for us to navigate the anticipated challenging market conditions of 2016 and beyond."
Al Mubarak, said among the 2015 milestones Mubadala achieved for Abu Dhabi was the strengthening of its base in key global industries such as aerospace. Its 2015 business highlights included: Strata being awarded a contract to manufacture Airbus A350-1000 Flap Support Fairings until 2023, and Boeing delivering the first 787 Dreamliner to Etihad Airways with advanced composite components made by Strata. During the year Strata also recorded that 86% of its Emirati workforce were women. At the same time, Nibras Al Ain Aerospace Park, the joint development with Abu Dhabi Airport Company, grew its tenant base, with over 85% of Phase I now complete and over 60% of plots occupied. The Nibras Al Ain Aerospace Park is a key catalyst for establishing a global aerospace hub and ecosystem in the United Arab Emirates.
Mubadala’s credit ratings are among the top corporate ratings globally at Aa2/AA/AA by Moody’s, Standard & Poor’s and Fitch, respectively.