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Bahrain's Mumtalakat records $182.6m net profit in 2016

The investment arm of the Kingdom of Bahrain, Bahrain Mumtalakat Holding Company, recorded a net profit of $182.6 in 2016, registering a 140% year-on-year rise

The above image is for illustrative purposes only.
The above image is for illustrative purposes only.

The investment arm of the Kingdom of Bahrain, Bahrain Mumtalakat Holding Company, has released its audited consolidated financial results for 2016.

In a statement, Mumtalakat said that the results reflect “a continued solid financial and operational performance” across its group of companies, with its net profits – at $182.6 (BHD68.9m) – registering a 140% rise, compared to 2015’s $76.1m (BHD28.7m). 

Sheikh Khalid bin Abdulla Al Khalifa, chairman of Mumtalakat, commented: “Despite global macroeconomic uncertainty, Mumtalakat reported strong profits for the fourth consecutive year. 

“Our strong results in 2016 are a testament to the strength of our investment strategy and ability to mitigate challenges with the sound business judgment and commitment of the board at the helm of Mumtalakat.”

Meanwhile, Mumtalakat’s CEO, Mahmood Hashim Alkooheji, said: “We are very proud of our achievements in 2016. Over the course of the year, Mumtalakat took active steps to further develop its portfolio through commercially viable investments, while diversifying into new sectors and territories, most notably healthcare, and building long-term partnerships with businesses that share our values. 

“Mumtalakat’s more recent investments constitute less than 10% of its portfolio value, yet they contribute more than 15% to total annual dividends received.”

According to the group, in 2016 it successfully completed five international investments across the manufacturing, healthcare, and real estate sectors.

Mumtalakat has acquired an equity stake in KOS Group, a European healthcare group focused on long-term care and rehabilitation services. It also acquired an equity stake in a UK-headquartered international provider of water treatment solutions, Envirogen Group, in addition to an equity stake in industrial gas producer, Gulf Cryo, based in Kuwait, and in Aleastur, a Spain-based manufacturer of aluminium grain refiners and alloys. 

Moreover, Mumtalakat has established a partnership with Regents Properties, through which it acquired a portfolio of commercial real estate assets in the United States.

Mumtalakat further noted that its financial performance in 2016 demonstrated an increase of group net profits despite losses in revenue by two national subsidiaries. Alba revenues reportedly decreased due to lower London Metal Exchange (LME) prices for aluminium.  Gulf Air also reported operating losses, which the group attributed to “increased regional competition in the aviation industry amidst challenging macro-economic conditions”. 

Stressing its continued support for its portfolio of companies, Mumtalakat pointed out that wholly owned subsidiary, Edamah, has various investments in Bahrain’s real estate sector, including five that have a total value of more than $1.06bn (BHD400m). 

These five include Sa’ada, a waterfront development in Muharraq; a North Hawar eco-tourism project; a multi-storey car park in Adliya; and a French-themed cultural environment and a retail strip in the educational area of Isa Town. 

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