Mumtalakat in a statement said that it had reduced its 2011 consolidated operating loss by almost 88% to BD5.9 million, from BD 48.9 million in 2010.
The share of profit, it added, from associate companies declined by approximately 11% as a result of lower operating income in these companies.
“This coupled with higher impairment losses of BD316.5 million in 2011 compared to BD191.2 million in 2010 resulted in a consolidated net loss of BD270.6 million,” the statement added.
Mumtalakat in a statement announcing its financial results for the year ended 31 December 2011 claimed improved revenues by significantly reducing its operating losses.
“Despite the global and regional economic volatility that was experienced in 2011, Mumtalakat delivered a robust financial performance,” Mahmood Al Kooheji, Chief Executive Officer of Mumtalakat, said.
“Mumtalakat’s diversified portfolio of non-oil and gas assets, benefited from Mumtalakat’s commitment to drive value enhancement through transparency and strong corporate governance, while maintaining financial discipline and a prudent investment approach. We remain in a strong financial position and moving forward Mumtalakat will continue to play a vital role in the growth and diversification of Bahrain’s economy, with future investments and partnerships likely to focus on the Kingdom and the region,” he added.
Mumtalakat reported an increase in 2011 consolidated revenue and gross profit of 8.4% and 5.5% respectively, compared to 2010, primarily due to strong performance of Aluminium Bahrain. Several restructuring initiatives were undertaken at Gulf Air to reduce operating losses, achieve cost efficiencies and improve the quality of product offering and customer service. However, the regional geo-political situation and higher fuel costs significantly affected the operations of Gulf Air and resulted in a higher operating loss versus the prior year.