Mumtalakat group reported a net profit of US$ 76.3 million (BD 28.7 million)

Manama, Kingdom of Bahrain, 22nd May 2016: Bahrain Mumtalakat Holding Company ("Mumtalakat" or the "Company"), the investment arm of the Kingdom of Bahrain, today announced its consolidated financial results for the year ended 31 December 2015. The results reflect continued solid financial and operational performance across Mumtalakat's group of companies ("Group"), and demonstrate the strength and resilience of the Company's investment model and the capability of its team.

Financial highlights

  • Gross profit of US$ 487.2 million (BD 183.2 million) [2014: US$ 481.6 million (BD 181.1 million)]

  • Operating income of US$ 330.9 million (BD 124.4 million) [2014: US$ 300.8 million (BD 113.1 million)]

  • Share of profit of associates of US$ 225.8 million (BD 84.9 million) [2014: US$ 113.6 million (BD 42.7 million)]

  • Net profit of US$ 76.3 million (BD 28.7 million)  [2014: US$ 243.6 million (BD 91.6 million)]

  • Total assets remained consistent with last year at US$ 10.6 billion (BD 4 billion)

During the year ended 31st December 2015, operating income increased to US$ 330.9 million (BD124.4 million) largely as a result of better operating performance from Gulf Air, which saw a decrease of 53% in operating losses for the year. The Group registered a net profit of US$ 76.3 million (BD 28.7 million), compared to US$ 243.6 million (BD 91.6 million) in the previous year. The reduction in the net profit is attributed to impairment losses recognised on goodwill that was partially offset by an increase in share of profit from associates and improved operational performance of Gulf Air.

Commenting on the results, Mumtalakat's Chief Executive Officer, Mr. Mahmood Hashim Alkooheji, said: "We are very happy to report strong profits for the third consecutive year, with significant improvements to the Company's financial position and the recording of positive retained earnings of US$ 24.5 million (BD 9.2 million).

Despite challenging global economic conditions, 2015 was a year of continued growth and achievements for Mumtalakat. We successfully executed a number of initiatives which have enhanced the value of our portfolio, benefitted Bahrain as a whole and demonstrated the capability of our team."

In 2015, Mumtalakat announced a number of important local investments with leading international businesses in the industrial & manufacturing and the real estate & tourism sectors. These include the planned development of a wheel manufacturing facility with Synergies Castings Limited and the planned development of a copper tube manufacturing facility with Mueller Industries and Cayan Ventures. Mumtalakat also announced the planned development of a 215 room luxury resort with Fairmont Resorts & Hotels, through its real estate arm, Bahrain Real Estate Investment ("Edamah"). These investments will collectively generate approximately 1500 new jobs and make a positive contribution to the domestic economy.

Furthermore, as part of its geographic diversification efforts, Mumtalakat acquired a significant minority stake in Nobel Learnings, a leading provider of pre-school to high school education based in the US. This acquisition is aligned with Mumtalakat's approach to invest in companies with strong growth potential looking for a value adding, long-term partner.

Mumtalakat is recognised as one of the world's most transparent sovereign wealth funds, and in 2015, it received a rating of 10 out of 10 in the Linaburg-Maduell Transparency Index, the most influential benchmarks in measuring the transparency of sovereign wealth funds. Out of a total of 52 funds surveyed, Mumtalakat was one of only 11 funds in the world to be awarded full marks.

Throughout the year, Mumtalakat remained well positioned in terms of liquidity. In December 2014, the company signed a USD 500 million Unsecured Revolving Credit Facility. The Facility was structured as a 5-year Revolving Credit Facility and was fully utilised in 2015 to refinance existing debt. 

Mumtalakat consolidated revenues for 2015 were US$ 3.106 billion (BD 1.168 billion), which is 4% lower compared to 2014, primarily due to lower LME aluminium prices affecting Alba. Nevertheless, despite the fluctuation of LME prices, Alba remained robust and profitable and registered a net profit of US$ 159.6 million (BD 60 million) for the year. Alba is continuously looking to improve its operating and cost efficiencies.

Gulf Air's net profit after government grants and write back of provisions and payables increased significantly to US$ 176.6 million (BD 66.4 million), compared to US$ 42 million (BD 15.8 million) in the prior year. Gulf Air has also reduced its operating losses by 53% to US$ 82.7 million (BD 31.1 million), compared to US$ 174.5 million (BD 65.6 million) in 2014, as a result of improved cost controls and operating efficiencies.

Mumtalakat's principal associates, Bahrain Telecommunications Company ("Batelco") and National Bank of Bahrain ("NBB"), both reflected strong contributions to the Group. Batelco's and NBB's share of profit to the Group was US$ 47.1 million (BD 17.7 million) and US$ 63.3 million (BD 23.8 million) respectively. NBB and Batelco reported a net profit of US$ 147.1 million (BD 55.3 million) and US$ 151.1 million (BD 56.8 million) respectively.

Mr. Alkooheji added: "With our prudent investment strategy, emphasis on sustainable value creation and focus on continuously enhancing governance across the Group, we are confident that we will continue to drive our business forward in 2016 and beyond."

-Ends-

About Mumtalakat
Mumtalakat is an independent holding company mandated to grow the wealth of Bahrain through long-term investments based on sound financial, strategic and governance principles. Mumtalakat holds stakes in over 40 commercial enterprises, with a portfolio spanning a variety of sectors, including industrial manufacturing, financial services, telecommunications, real estate, logistics, consumer products and education. 

Bahrain Mumtalakat Holding Company:
Nada Abdulghani
Corporate Communications
Direct: +973 1756 1281
Email: Nada.Abdulghani@bmhc.bh

© Press Release 2016