Taqa net profits hit Dh869m

ABU DHABI - Abu Dhabi National Energy Company (Taqa) recorded net profits of Dh869 million in the first half of 2008, up against Dh249 million in the same period previous year, depicting strong earnings growth of 249 per cent on the back of acquisitions and higher oil and gas prices, officials said.

Net profit for the second quarter grew 154 per cent to Dh471 million, compared with Dh186 million in the same quarter in 2007, reflecting profits from acquisitions as they have been integrated into the company, as well as the positive impact of higher oil and gas prices.

Basic earnings-per-share grew by 154 per cent to 11 fils for the quarter, compared with 4 fils for the same period in 2007. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 156 per cent to Dh2.9 billion in the second quarter 2008, compared with Dh1.1 billion in the second quarter 2007.

Total revenue grew by 155 per cent to Dh4.6 billion, compared with Dh1.8 billion for the same period in 2007. Revenue from oil and gas activities was Dh2.3 billion, compared with Dh77 million for the same period in 2007, showing the impact of acquisition of upstream assets in North America and Europe since Q2 2007.

High average oil and gas prices experienced during the period have also made a positive contribution. Revenue from gas storage grew to Dh86 million, compared with Dh8 million for the same period in 2007. Revenue from the electricity and water business increased slightly to Dh1.4 billion, compared with Dh1.2 billion the second quarter of 2007, excluding revenues from supplemental fuel sales.

Finance costs increased to Dh972 million from Dh597 million reflecting the financing arrangements put in place to fund acquisitions over the previous 12 months. As at June 30 2008, total assets were Dh85.9 billion.

The upstream and midstream businesses generated revenue of Dh2.5 billion, representing 55 per cent of total revenue. Total production for the second quarter of 2008 averaged 119.2 thousand barrels of oil equivalent per day (mboe/day), split between Taqa North (96.7 mboe/day), Taqa Energy (7.4 mboe/day) and TAQA Bratani (15.1 mboe/day). Taqa North had a drilling success rate of 100 per cent in Q2 2008. Results represent significant growth due to the impact of Taqa’s acquisitions in 2007 and strong commodity prices. Peter Barker-Homek, CEO of Taqa, said these results show the significant change in the nature of our business compared to just 12 months ago.

haseebhaider@khaleejtimes.com