Profits rise at Bahrain’s Mumtalakat

ProfitIncreased sales at Aluminium Bahrain and Gulf Air helped the Mumtalakat Holding Company, the investment arm of Bahrain, increase its net profits by 11% over the course of last year.

Mumtalakat, which is structured as a private equity firm and owns 38 portfolio companies, now oversees assets of 4.2 billion Bahraini dinars ($11 billion), according to its 2014 annual report.

Gulf Air, the loss-making Bahraini national airline, has traditionally been a drag on Mumtalakat’s revenue; however, a statement from the fund says restructuring has continued to reduce operating losses. Meanwhile, Aluminium Bahrain increased its profits thanks to rising aluminium prices.

Mahmood Hashim Al Kooheji, who was appointed as chief executive of Mumtalakat in March, 2012, says the fund is planning to expand its portfolio into new geographical areas through acquisitions.

Mumtalakat’s gross profit for 2014 was 65% more than in the previous year thanks to a rise in revenue outpacing the rise in costs. Impairments also increased in the year, leading to a more modest rise in net profits.

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