June 11, 2020 / 8:24 AM / a month ago

CORRECTED-UPDATE 1-Abu Dhabi's Mubadala says it is well placed to handle virus challenge

(Corrects paragraph 8 to show figure was the enterprise value for Cepsa not the value of the transaction)

By Hadeel Al Sayegh and Saeed Azhar

DUBAI, June 11 (Reuters) - Abu Dhabi state fund Mubadala said on Thursday its strong liquidity position and a diverse portfolio will help the fund tackle the challenges posed by the coronavirus outbreak and weak oil prices, as it posted a four-fold jump in its 2019 income.

“All of this positions us very well to handle this very extraordinary situation in the best way possible,” group chief executive Khaldoon Khalifa Al Mubarak said referring to the fund’s strong balance sheet and $232 billion portfolio in a video message.

Mubadala Investment Co’s total comprehensive income grew to 53 billion dirhams ($14.43 billion) in 2019 from 12.5 billion dirhams in 2018, helped largely by gains in its public equity portfolio and funds.

Assets under management also rose 1.5% to 853 billion dirhams or $232 billion at year-end, it said in a statement.

The results are also the first to consolidate the full-year results from the Abu Dhabi Investment Council, an investment arm of the Abu Dhabi government, which joined Mubadala in 2018.

“Not only did we deliver strong financial results, but also continued to grow our presence across multiple asset classes in key sectors and markets,” Mubarak said.

The Abu Dhabi sovereign investment company said it realized 63 billion dirhams in 2019 from the “monetization of mature assets and distributions from investments locally and abroad.”

That year, Mubadala sold a 38.5% stake in Spanish oil refiner Cepsa to the Carlyle Group. The transaction was based on an enterprise value for Cepsa of 44.1 billion dirhams.

It also exited its investment in U.S. chipmaker Advanced Micro Devices, generating proceeds of 9.9 billion dirhams that year.

It also exited its stake in Brazil’s Restaurant Brands International, generating proceeds of 4.4 bln dirhams. The state fund also sold a 10.22% stake in telecoms operator du resulting in a gain of 2 bln dirhams.

The fund also invested 68 billion dirhams in 2019.

Mubadala, which owns Cleveland Clinic Abu Dhabi, in 2019 bought Amana Healthcare, a provider of long-term care, specialised rehabilitation, and home healthcare services.

$1 = 3.6728 UAE dirham Reporting by Hadeel Al Sayegh and Saeed Azhar Editing by Davide Barbuscia and David Evans

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