Mubadala Reports Largest Total Comprehensive Income in Its History

Mubadala Reports Largest Total Comprehensive Income in Its History
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Mubadala Reports Largest Total Comprehensive Income in Its History

Mubadala Reports Largest Total Comprehensive Income in Its History

The Mubadala Investment Company said it achieved in 2020 a total comprehensive income (TCI) attributable to the owner of AED72 billion for the year, compared to AED 53 billion in 2019. It's the largest TCI in Mubadala’s history, driven by significant growth in Mubadala’s public equities portfolio and funds, and its assets across various sectors.

This came as the Abu Dhabi sovereign investor, released its 2020 financial results for the Group on Thursday.

The performance was also attributable to Mubadala’s multi-year strategy to increase investments in sectors with growth ‘tailwinds,’ such as technology, life sciences, and consumer goods, through direct investments and partnerships with leading fund managers, state news agency WAM reported.

Major investments in 2020 reinforced that strategy, including long-term agreements with Silver Lake in technology; in life sciences with PCI Pharma in the US, and in consumer goods and telecommunications with the Reliance Group of India, as well as new commitments and deployments with Apax Partners, Citadel, iSquared Capital and CVC.

Khaldoon Al Mubarak, Managing Director and Group CEO of Mubadala, said: "Last year, as the world confronted a tragic pandemic, we worked closely with our partners and portfolio companies to offer support to communities hit hard by COVID-19. Across the group, our employees dedicated themselves to helping these communities during this crisis, and that important work will continue."

"We navigated our portfolio through the dramatic macro-economic decline of early 2020, and decided to accelerate the pace of our capital deployment, ending the year with record profit and growth. In line with our long-term strategy, we increased our investments in sectors where we have high conviction, and with high performing fund managers. Technology and life sciences in particular have been essential to the world over the last year, and we see those sectors bringing greater opportunity for deeper investment. We have worked to be well-positioned in these areas and in key geographies as the global economy continues to recover."

Overall, the UAE and the US remain the largest geographic areas for the portfolio. In addition to its new capital deployment in India, Mubadala also invested through its sovereign investment partnerships in France, China and Russia in 2020.

At year-end, assets under management across the Group stood at AED 894 billion, compared to AED 853 billion in 2019.

Group Chief Financial Officer Carlos Obeid, said: "This strong performance was a reflection of our agility as an investor, as well as our globally diversified portfolio of equities, funds, and mature and growing companies. In 2020 we took advantage of the historically low interest rates to lower our cost of borrowing and extend its weighted average life on the back of strong investor demand for our bond issuances. We continue to maintain a prudent gearing ratio standing at 9.1 percent and a strong cash position as we manage through this economic cycle with a long-term view."



Oil Slips as OPEC+ Output Hikes Counter Russia Disruption Concerns

Repsol oil refinery complex is seen during the sunset near Tarragona, Spain February 13, 2025. REUTERS/Nacho Doce/File Photo
Repsol oil refinery complex is seen during the sunset near Tarragona, Spain February 13, 2025. REUTERS/Nacho Doce/File Photo
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Oil Slips as OPEC+ Output Hikes Counter Russia Disruption Concerns

Repsol oil refinery complex is seen during the sunset near Tarragona, Spain February 13, 2025. REUTERS/Nacho Doce/File Photo
Repsol oil refinery complex is seen during the sunset near Tarragona, Spain February 13, 2025. REUTERS/Nacho Doce/File Photo

Oil slipped about 1% on Tuesday as rising OPEC+ supply and worries of weaker global demand countered concern about US President Donald Trump's threats to India over its Russian oil purchases.

The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, agreed on Sunday to raise oil production by 547,000 barrels per day for September, a move that will end its most recent output cut earlier than planned.

Brent crude futures were down 70 cents, or 1%, to $68.06 a barrel at 1052 GMT, while US West Texas Intermediate crude slipped 79 cents, or 1.2%, to $65.50. Both contracts fell by more than 1% on Monday to settle at their lowest in a week.

Trump on Monday again threatened higher tariffs on Indian goods over the country's Russian oil purchases. New Delhi called his attack "unjustified" and vowed to protect its economic interests, deepening a trade rift between the two countries.

Oil's move since Trump's threat indicates that traders are sceptical of a supply disruption happening, said John Evans of oil broker PVM in a report. He questioned whether Trump would risk higher oil prices.

"I'd call it a stable market for oil," said Giovanni Staunovo, analyst at UBS. "Assume this likely continues until we figure out what the US president announces in respect to Russia later this week and how those buyers would react."

India is the biggest buyer of seaborne crude from Russia, importing about 1.75 million bpd from January to June this year, up 1% from a year ago, according to data provided to Reuters by trade sources.

Trump's threats come amid renewed concerns about oil demand and some analysts expect faltering economic growth in the second half of the year.

JPMorgan said on Tuesday the risk of a US recession was high. Also, China's July Politburo meeting signalled no more policy easing, with the focus shifting to structural rebalancing of the world's second-largest economy, the analysts said.