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Taqa Quarterly Profit Dives 45pc

Net income declined to Dh360 million ($98 million) from Dh653 million in the year-earlier period, according to Bloomberg calculations based on full-year preliminary data provided by the company, also known as Taqa, on Wednesday. Taqa confirmed the fourth-quarter numbers pending the release of audited figures.

Crude oil has lost more than $100 a barrel since spiking to a record $147.27 a barrel in July. Crude declined 56 per cent in the fourth quarter as a weakening global economy curtailed demand.

Taqa shares gained as much as 9.9 per cent to Dh1.11 and were trading at Dh1.09 in Dubai. The stock lost 71 per cent last year. Taqa said full-year net rose 89 per cent to Dh1.95 billion, or Dh0.39 a share, from Dh1.03 billion, or Dh0.25, as it bought assets in North America and Europe. Assets increased 29 per cent to Dh87.8 billion at year end.

Taqa is expanding fuel supply through acquisitions like the $631 million purchase of North Sea fields from Royal Dutch Shell Plc’s UK unit and Exxon Mobil Corp.’s Esso Exploration and Production UK Ltd. completed in December. The company may spend $3 billion on acquisitions in 2009, a quarter less than originally planned as asset prices fall, CEO Peter Barker-Homek said last month.

Full-year revenue more than doubled to Dh16.9 billion, compared with Dh8.34 billion in the year-earlier period.