|02 June, 2019

Bahrain wealth fund Mumtalakat's 2018 profit tumbles

The state fund has over 60 companies in its portfolio and committed $181 million in 2018 to local and international investments

Logo of Mumtalakat is seen as an employee walks out at their headquarters Manama, Bahrain February 21, 2018.

Logo of Mumtalakat is seen as an employee walks out at their headquarters Manama, Bahrain February 21, 2018.

REUTERS/Hamad I Mohammed

ABU DHABI- Bahrain's sovereign wealth fund Mumtalakat's net profit tumbled 73.5%, it said in a statement on Sunday. The fund which holds stakes in Bahraini companies including Aluminium Bahrain (Alba) and telecoms company Batelco made a net profit of $148.4 million in 2018 compared to $560.1 million in the previous year.

"Net profit in 2017 included fair value gain on de-recognition of associates of $667 million while a higher cost of raw materials in 2018 led to a fall in Alba's profits," the statement said, without giving further details.

Mumtalakat's revenue totalled $5.5 billion in 2018, up 38% over the previous year due to the full year impact of the consolidation of McLaren and higher sales at Alba, it said.

Total assets of the state investor grew to $16.8 billion in 2018 from $15.4 billion in 2017.

The state fund has over 60 companies in its portfolio and committed $181 million in 2018 to local and international investments, the statement said, adding that capital expenditure in key local companies totalled $1.7 billion in 2018, up 9 percent over 2017.

(Reporting By Stanley Carvalho, editing by David Evans) ((stanley.carvalho@thomsonreuters.com; + 9712 6444431; Reuters Messaging: stanley.carvalho.thomsonreuters.com@reuters.net))