MANAMA: The global and regional economies are undoubtedly experiencing some challenging headwinds, Mumtalakat remains optimistic during 2015, according to top official at Bahrain’s sovereign fund, Mumtalakat.
“Mumtalakat is confident that we have the right strategy, the right people and the right expertise in order to ensure sustainable growth for the long term,” Mumtalakat’s Chief Executive Officer, Mahmood Hashim Al Kooheji, said.
Bahrain Mumtalakat Holding Company (Mumtalakat), the investment arm of the Kingdom of Bahrain, results for 2014 reflect another solid financial and operational performance across the Mumtalakat group, constituting of 38 portfolio companies.
“Our portfolio management and investment strategy is conducted not only with a commercial mind-set, but we ensure that both we and our portfolio companies adhere to the highest standards of corporate governance and transparency. In doing so, we always seek to engage with management teams who share our vision and cultural values,” he said.
“2014 was another good year for Mumtalakat and we are very proud of what we have achieved,” the CEO added.
“The strength of our financial results reflects the fact that we have been successful in implementing a disciplined and focused approach in the management of our portfolio.
“In addition, Mumtalakat aims to diversify its portfolio across geographies through new investments and acquisitions. The benefits of our overall approach are clear from these results, which demonstrate the continued progression towards greater profitability.”
While group revenues for the year were up by 11% to BD 1.2 billion, direct costs rose by less than 5%, resulting in a 65% increase in gross profit to BD 181.1 million. The revenue growth was primarily due to higher sales reported both by Aluminium Bahrain (Alba) and Gulf Air. A continuing focus on revenue enhancement and cost control within the group has contributed to a significant increase in operating income by 60% to BD 113.1 million from BD 70.7 million. The overall result was a net profit for the year of BD 91.6 million, 11% higher than the previous year (2013: BD 82.7 million). Impairment in the year amounted to BD 34.4 million (2013: BD 20.9 million) while net profit before impairment grew by 22%.
Alba achieved a 9.7% increase in revenue (BD 821.7 million in 2014 compared to BD 749.3 million in 2013) on the back of higher LME prices for aluminium, particularly in the second half of the year. Alba also achieved higher premiums on its value-added products. As a result, Alba achieved a net profit for the year of BD 96.4 million in 2014, compared to a net profit of BD 79.8 million in 2013.
Bahrain Telecommunications Company (Batelco) grew its net profit by 12%, making a contribution to the group net profit of BD 17.7 million. National Bank of Bahrain increased net profits by 4%, contributing BD 24.3 million to the group net profit.