Business | Markets
Taqa reports 448% rise in third-quarter profit
The Abu Dhabi National Energy Company PJSC (Taqa) said its fiscal third quarter net profit rose a whopping 448 per cent on year to Dh723 million, led by new acquisitions and income from oil and natural gas business.
- By Himendra Mohan Kumar, Staff Reporter
- Published: 22:58 November 1, 2008
Abu Dhabi: The Abu Dhabi National Energy Company PJSC (Taqa) said its fiscal third quarter net profit rose a whopping 448 per cent on year to Dh723 million, led by new acquisitions and income from oil and natural gas business.
In a statement, Taqa's chief executive officer Peter Barker-Homek said: "While revenues during the third quarter derived from oil and gas were dampened by lower average commodity prices, the growing strength of our midstream and downstream portfolio has acted to mitigate this."
"The positive impact of the acquisitions we have made is directly visible in our bottom line," Barker-Homek added.
The company's revenue from oil and gas activities was Dh2.1 billion during the third quarter, compared with Dh308 million for the corresponding period a year earlier. The average net realised price of crude oil for the total production in North America and Europe was $ 104.62 per barrel, it said.
Taqa's basic earnings-per-share showed a 310 per cent increase to 13 fils for the third quarter of 2008, compared with 3 fils for the third quarter of 2007.
The company's strong showing did little to lift its share price on the Abu Dhabi Securities Exchange (ADX). The shares ended at Dh1.95 on Thursday.
The company's total revenue for July-September quarter increased 81 per cent on the year to Dh4.5 billion.
For the first nine months of 2008, Taqa's net profit increased 318 per cent on year to Dh1.6 billion, while total revenue for the same period was up 145 per cent on year to Dh13.1 billion.
Utilities
Taqa said its oil and natural gas revenue for January-September period reached Dh6.2 billion, compared with Dh462 million for the first nine months of 2007.
"This increase was driven primarily by the revenues from Taqa North of Dh4.8 billion comprising the full consolidation of all three Taqa acquisitions in Canada," it said.
The company's total revenue from the sale of electricity and water was Dh4 billion for the first nine months this year, compared with Dh3.4 billion for the same period a year earlier. Its gas revenue for the first nine months of 2008 was Dh391 million, compared with Dh106 million for the same period in 2007.
"Finance costs were Dh2.8 billion for the nine months ending September 30, an increase of 58 per cent when compared with finance costs of Dh1.8 billion for the nine months ended September 30, 2007 as a result of costs related to acquisitions and on new bonds of $ 1.5 billion issued in July 2008," said Taqa.
As of September 30, Taqa's total assets were Dh85.4 billion, compared with Dh67.8 billion as of December 31, 2007.
"As I look forward into 2009, we are well financed. Equipped with extensive available credit facilities, we do not have any short term refinancing needs. Our strategic plan remains unaffected by recent events in financial markets and we continue to build a strong operational track record," said Barker-Homek.
"Taqa is in a particularly good financial position, having $1.6 billion in cash on balance sheet," said the chief financial officer of Taqa, Doug Fraser.
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