Mumtalakat reports 140pc jump in profit

Manama : Mumtalakat yesterday release consolidated financial results for the fiscal year ended 31st December 2016 recording a net profit of BD68.9 million (US$183.2m), compared to BD28.7m (US$76.3m) in the prior year.

The company’s consolidated revenues were BD1.023 billion (US$2.721bn) in 2016, a 12.4pc change compared to BD1.168bn (US$3.106bn) in the prior year. Operating income for the year 2016 was BD84.1m (US$223.7m), compared to BD124.4m (US$330.9m) a year ago.  Total assets were reported at BD3.9bn (US$10.4bn), compared to  BD4.0bn (US$10.6bn) last year.    

Mumtalakat’s Chief Executive Officer, Mahmood Hashim Alkooheji said, “Mumtalakat’s sound performance, year after year, is a reflection of the strength of its approach.”

The group net profits jumped by 140 per cent despite some losses in revenue by two leading national subsidiaries: Alba sales revenue decreased due to lower London Metal Exchange (LME) prices for aluminium.  Similarly, the increased regional competition in the aviation industry amidst challenging macro-economic conditions led to an increase in operating losses for Gulf Air during 2016. 

At the same time, Mumtalakat maintained its rating of 10 out of 10 in the Linaburg-Maduell Transparency Index, for the second year in a row. Mumtalakat was one of only 13 funds out of 50 in the world to be awarded full marks.

Between 2007 and 2011, Mumtalakat’s funding of Gulf Air reached a total BD475m. The company also continues its backing of the Bahrain International Circuit with annual funding of approximately BD13m.

Through its wholly-owned subsidiary, Edamah, Mumtalakat is contributing to improved community living and tourism with investments in the real estate sector in the Kingdom of Bahrain. Five such developments, at a total cost of over BD400m, are currently underway by Edamah. These include Sa’ada, a waterfront development in Muharraq; a North Hawar eco-tourism development, a multi-storey car park in Adliya (The Terminal), a French-themed cultural environment (Versailles Plaza), and the Isa Town Retail Strip (Sharwa). These enhanced lifestyle and community service developments are expected to create over 3,000 job opportunities across the Kingdom in addition to attracting further regional tourism.