Published: July 9, 2012
Mumtalakat CEO praises "robust financial performance" despite widening losses.
Mumtalakat, Bahrain’s sovereign wealth fund, has announced its latest financial results, revealing improved revenues but also a greater net loss than in 2010.
The fund saw revenues and gross profit rise by 8.4% and 5.5% respectively in 2011, primarily due to a strong performance of Aluminium Bahrain, in which it holds a stake of almost 70%. Aluminium Bahrain made a profit of BD212mn (US$562mn) last year compared with BD138mn in 2010.
Not all state-backed companies performed so well. Carrier Gulf Air was restructured during the year in an attempt to reduce its operating losses, but Mumtalakat notes that regional geo-political risks and increased fuel costs led to a higher loss than in 2010.
Mumtalakat reduced its own operating loss to BD5.9mn from BD48.9mn but saw net losses rise to BD270.6mn from BD234.3mn due to impairments. Announcing the results, fund CEO Mahmood Al Kooheji described them as a “robust financial performance”.
“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,” Al Kooheji added.