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Hydrocarbon revenues boost TAQA’s profits by 618pc in Q1

The Abu Dhabi-based energy company said revenues from the upstream and midstream businesses rose 38 per cent year–on-year to Dh2.550 billion, reflecting the improvement in crude oil and natural gas prices. Additional capacity from the DSM assets acquired last year, along with favourable currency exchange rates, also contributed to the revenues earned.

“Stable revenues in the Power & Water business, combined with flat cost of sales resulted in a significant increase in net profit after minority interests,” said Carl Sheldon, General Manager of TAQA. Three month revenues from the sale of electricity and water surged six per cent to Dh1.5 billion, compared to the Dh1.4 billion in the first quarter last year due to the expansion of Taweelah A1 in Abu Dhabi.

The newly-appointed CEO Abdulla Saif Al Nuaimi, in a conference call said that he would focus on optimisation and integration of existing assets and the development of specific organic growth opportunities, in the year ahead. TAQA shares closed at Dh1.17, rising 3.54 per cent as market welcomed the remarkable financial performance.

The energy company also made headway in reducing its net debt to capital position which has been reduced to 80 per cent from 85 per cent in the same quarter previous year, the general manager said in a statement.

Progress has been made on organic growth projects, including signing an MOU with the Ghanaian Government for the expansion of Takoradi, and selecting a preferred EPC bidder for the expansion of Jorf Lasfar in Morocco, he said. The project expansion of 700 MW remains on track for commissioning in 2013 and 2014.

The general manager said that the company continued to focus on the optimisation of assets, particularly in TAQA NORTH where a well by well review has been conducted as well as drilling three new wells in the Horn River Basin.

TAQA Energy’s production was boosted year on year due to the acquisition of DSM Energy, the company said in its earnings statement Wednesday.

“In terms of gas storage, the cold winter in Europe resulted in increased usage of European gas storage facilities and PGI Alkmaar performed well, producing two-thirds of its capacity,” it said. Bergermeer Gas Storage has achieved a key milestone, with the Netherlands Ministry of Economic Affairs issuing a State Permitting Plan, taking the project to the final stage in the permitting process. Engineering work is on schedule and pipeline engineering is ahead of schedule.

TAQA Bratani found success with its North Sea drilling program in making an oil discovery north-east of its Tern field. The exploration well was drilled in Block 210/25 of production license P296, approximately eight kilometres north-east of the TAQA Bratani operated Tern Alpha platform, according to the statement. Development planning is underway to bring this well on production. “The field could potentially be developed as a single-well subsea tieback to the Tern Alpha platform,” the statement said.

haseeb@khaleejtimes.com