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Mumtalakat posts drop in net profit

Bahrain Mumtalakat Holding Company, the investment arm of the Kingdom of Bahrain, has posted a 68.7% drop in 2015 net profit. The company said cited impairment losses as the reason for the decline. The net profit in 2015 was $76.3 million against $243.6 million in the previous year, it said in a statement. It noted though that the impact was partially offset by a higher contribution from its share of profit from associates and improved operational performance at Gulf Air. The company’s consolidated revenues for 2015 were $3.106 billion, which is 4% lower compared to 2014, primarily due to lower LME aluminium prices affecting Alba.
The statement gave other details: gross profit of $487.2 million against $481.6 million in the previous year; operating income of $330.9 million against $300.8 million and total assets remained consistent with last year at $10.6 billion. It also said operating income increased to $330.9 million largely as a result of better operating performance from Gulf Air, which saw a decrease of 53% in operating losses for the year.
Mumtalakat’s CEO Mahmood Hashim Alkooheji, said there has been significant improvements to the company’s financial position and the recording of positive retained earnings of $24.5 million. Despite challenging global economic conditions, 2015 was a year of continued growth and achievements for Mumtalakat, he said adding the company successfully executed a number of initiatives which have enhanced the value of its portfolio, benefitted Bahrain as a whole and demonstrated the capability of the team.
In 2015, Mumtalakat had announced a number of important local investments with leading international businesses in the industrial and manufacturing and the real estate and tourism sectors. These include the planned development of a wheel manufacturing facility with Synergies Castings 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. In addition, 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.
Alkooheji said with its prudent investment strategy, emphasis on sustainable value creation and focus on continuously enhancing governance across the Group, the company is confident that it will continue to drive its business forward in 2016 and beyond.

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