TAQA Q3 Profit Down 87.5pc

ABU DHABI — Abu Dhabi National Energy Company, or TAQA, said that its net profit tumbled 87.5 per cent to Dh90 million in the third quarter from the Dh723 million it earned a year ago, due to continued instability in oil prices.  Revenue from its oil and gas activities declined by 33 per cent to Dh1.5 billion, compared with Dh2.2 billion for the same period in 2008, as a result of the sharp fall in sales prices.

By Haseeb Haider

Published: Thu 12 Nov 2009, 11:04 PM

Last updated: Sun 5 Apr 2015, 9:52 PM

Total revenue reached Dh3.9 billion compared with Dh4.5 billion, a decrease of 14 per cent, the ADX listed Energy Company said in a regulatory posting.

However, revenue from its electricity and water business rose 11 per cent to Dh1.6 billion, due to the expansion of Taweelah B and Fujairah I projects and revenue from the Red Oak tolling contract acquired in December 2008.

“Cost of sales rose to Dh2.8 billion in 2009, a rise of 9 per cent from Dh2.6 billion in 2008, due to additional operating costs incurred related to new acquisitions in December 2008, which was partially offset by overall lower costs,” the company said.

Earnings before interest, taxes, depreciation and amortisation, or EBITDA, was Dh1.9 billion for the third quarter against Dh3 billion in the corresponding period of the last year.

TAQA’s international and domestic downstream business contributed 52 per cent of total revenues during the third quarter of 2009, the firm said.

As of 30 September 2009, the Abu Dhabi-based company’s downstream operations represented total global generation capacity (gross) of 12,909 MW.

Upstream activity contributed revenues of Dh1.5 billion, 48 per cent of total revenues.

Total production was 132. 6 thousand barrels of oil equivalent per day (mboe/day), which was triple the 110.5 thousand barrels or mboe/day that it produced in the third quarter of 2008.

TAQA North production declined by five per cent due to decreased capital investment as a result of lower gas prices, the company said in  a statement.

TAQA said that its financing costs have decreased year-on-year to Dh904 million in the period compared with Dh984 million in 2008, as a result of bond buyback programme during the year and lower interest rates  on floating debt.

“The value of diversified business model has been amply demonstrated through the stable cash flows generated by downstream assets, which have offset the greater volatility of upstream business,” said Carl Sheldon, the recently appointed General Manager of Abu Dhabi National  Energy Company.

“I believe that our global energy assets present significant potential value and our focus now is on fulfilling this through the optimisation of our existing portfolio into 2010 and beyond,” he added.  

haseebhaider@khaleejtimes.com