Abu Dhabi National Energy Company (Taqa) on Thursday posted Dh112 million in net profit for the first half of 2017 compared to a net loss of Dh1.2 billion during the same period last year due to higher oil prices and cost-cutting measures.
Revenues of the company went up by 5 per cent to Dh8.4 billion in first half of this year from Dh7.9 billion reported in the first half of 2016.
In the second quarter of this year, revenues of the company reached Dh4.2 billion, up slightly from Dh4.03 billion in the second quarter of 2016. The company made profit attributable to shareholders of Dh35 million in the three months to June 30 compared with a loss of Dh588 million during the same period last year.
This is the second consecutive quarter of profits for the Abu Dhabi-based company after incurring losses for two years due to low commodity prices. It posted a net profit of Dh77 million in the first quarter of 2017.
“Taqa’s results for the first half of 2017, which demonstrated a positive net income for the second consecutive quarter, were driven by strong operational performance, continued efficiency improvements and a focus on core operations,” Saeed Hamad Al Daheri, acting Chief Operating Officer of Taqa, said in a statement.
“A key operational milestone was the achievement of first oil from our Atrush project in the Kurdistan Region of Iraq post period in July. Atrush will be a significant contributor to the Group’s long-term cash flows and net income.”
Taqa will continue to concentrate on safe and efficient operations while looking for opportunities to optimise its portfolio against the backdrop of low oil price environment, he added.
Taqa, which is 74 per cent owned by Abu Dhabi Water and Electricity Authority (Adwea), is active in 11 countries in power generation and oil and gas sectors.
The first half production volumes of the firm reached 131,086 barrels of oil equivalent per day (boed), down 11 per cent on first half of 2016 (147,415 boed) impacted by prior capital expenditure reductions.
Production from the Atrush Block in the Kurdistan region of Iraq is expected to ramp up towards the 30,000-barrel-per-day project capacity in 2017.
In power and water, global power generation remained stable at 38,346 gigawatts compared to 39,090 gigawatts in first half of 2016. The UAE operations produced 30,091 gigawatts of electricity and 120,643 million imperial gallons of desalinated water.
Total liquidity is strong at Dh12.4 billion, including Dh3.5 billion in cash and cash equivalents and Dh8.9 billion of undrawn credit facilities. The total debt was reduced by Dh1.7 billion in the first half of 2017, the company said.
It added that it exited from Himachal Sorang Power Limited in India but still owns and operates Neyveli plant in Tamil Nadu.
In a conference call with analysts, Mohammad Al Ahbabi, acting chief financial officer of Taqa, said the firm currently doesn’t have any specific plans for any asset divestiture but will continue to review opportunities to monetise non-core assets to maximise shareholder value.