Bahrain’s sovereign fund reports net loss of BD181.7m in 2012

Bahrain Mumtalakat Holding Company (Mumtalakat), the investment arm of the Kingdom of Bahrain, on Wednesday reported consolidated net loss after impairment losses for the year was BD 181.7 million, 32.9% lower compared to 2011.

Mumtalakat cited the lower LME aluminium prices for losses which according to the company contributed to a 66.8% reduction in consolidated gross profit compared to 2011.

Overall, it added, despite challenging market conditions, Mumtalakat achieved a consolidated net profit before impairment losses of BD 45.2 million.

Bahrain Mumtalakat Holding Company (Mumtalakat), the investment arm of the Kingdom of Bahrain, announced its consolidated financial results for the year ended 31 December 2012. The results affirm Mumtalakat’s continued resilience despite a challenging global and regional economic environment.

Mumtalakat’s consolidated revenues for 2012 were 9.9% lower compared to 2011, primarily due to lower LME aluminium prices affecting Aluminium Bahrain, one of Mumtalakat’s most significant portfolio companies. Notwithstanding the impact of lower revenues in the aluminium sector, Mumtalakat’s diversified investment portfolio, particularly in the financial services and telecommunications has contributed to a 9.1% increase in share of profits from associate companies compared to 2011. Impairment losses, which were 28.3% lower than 2011, were primarily driven by lower LME aluminium prices affecting Mumtalakat’s investment in Aluminium Bahrain.

“In 2012 we achieved a solid performance despite challenging market conditions in the global economy. We continued to identify and implement initiatives to enhance our portfolio companies’ overall performance,” Mumtalakat’s Chief Executive Officer, Mahmood Hashim Al Kooheji, said.

“In 2012 we refined our investment strategy and aligned our organisation to focus on both value enhancement of the existing portfolio and value creation through developing new investment opportunities in key sectors. While the scope of our investment strategy remains global, we are particularly optimistic about local opportunities which we believe will present attractive investments for us in the short and medium term.”

Mumtalakat remained well positioned throughout the year in terms of liquidity and capital structure. In July 2012, the company established a MYR 3 billion (equivalent to approximately US$1 billion) Sukuk Murabaha programme in Malaysia.

“As the investment arm of the Kingdom of Bahrain, we continue to play a vital role in the growth of our economy. We are committed to operating with the financial discipline of the private sector and adhering to the highest standards of transparency and corporate governance. It is our firm belief that this commitment, along with our resilient portfolio, talented staff and a prudent investment strategy will place us in a strong position to achieve future growth and profitability in the years ahead,” Al Kooheji added.