MANAMA: Mumtalakat, Bahrain’s sovereign wealth fund, has reported its highest ever net profit for the year ended December 31, 2021.
On a standalone basis, the firm has recorded a profit of BD45.6 million in 2021 compared with a loss of BD550.7m for the year 2020.
The standalone results represent solely the activities of Mumtalakat as an entity.
Furthermore, Mumtalakat paid dividends to the shareholder of BD20m as a contribution to the national budget.
Dividend income received during 2021 was BD63.3m compared with BD49.2m for 2020, and profits before impairments amounted to BD71.3m compared with BD68.3m in 2020.
The group’s financial results show a robust rebound from the previous year, which was impacted by the Covid-19 global pandemic.
The results represent the activities of Mumtalakat and the results of its portfolio companies which recorded a consolidated net profit of BD329m in 2021 as compared to a consolidated net loss of BD528m in 2020.
The significant improvement in net results is attributed mainly to the improved operational performance of Alba, a principal company of the group, and lower impairment losses.
The group’s revenue increased by 34 per cent from BD1.6 billion in 2020 to BD2.2bn in 2021 primarily driven by higher LME prices.
Deputy Prime Minister, Infrastructure Minister and Mumtalakat chairman Shaikh Khalid bin Abdulla Al Khalifa said: “Mumtalakat’s portfolio companies witnessed a remarkable recovery during the 2021, which in turn led to the remarkable enhancement of the financial results of Mumtalakat Group and contributed to the kingdom’s economic growth, under the leadership of His Majesty King Hamad, in line with the objectives of Economic Vision 2030, under the guidance and supervision of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Prime Minister and chairman of the Economic Development Board.”
Mumtalakat chief executive Khalid Al Rumaihi said: “Mumtalakat recorded the highest net profit since its inception, which is a result of the continued support from His Majesty the King, and in line with the economic policies driven by the Government of Bahrain and spearheaded by His Royal Highness the Crown Prince and Prime Minister.”
Mr Al Rumaihi stressed that the implementation of Mumtalakat’s new investment strategy, which focuses on the active ownership model to extract value from the company’s portfolio assets through an active management approach, effective board representation, and providing strategic expertise, led to this unprecedented record result.
It is worth mentioning that Alba registered a record net profit for the year of BD452m compared with a net profit of BD9.8m in the prior year. The increase in net profit is primarily due to higher LME prices of aluminium in 2021 and the increase in production and sales resulting from its line 6 expansion. In addition, the aviation industry experienced modest recovery due to lifting of travel restrictions which resulted in an increase in Gulf Air ticket sales.
The group’s principal associates, National Bank of Bahrain (NBB) and Batelco continued to report strong results. The group’s share of profits from Batelco and NBB for 2021 were BD22.6m and BD21.9m respectively (2020: BD20.3m and BD10.8m respectively).
&uuid=(email))