Taqa earnings soften on lower global oil prices

Abu Dhabi: The Abu Dhabi National Energy Company (Taqa) said on Wednesday its fiscal third-quarter net profit fell 87.55 per cent on year to Dh90 million, mainly due to lower global oil prices, which is the mainstay of its business.

"Year-on-year comparisons are affected by a significant difference in commodities pricing, especially when compared to third quarter 2008 during which oil prices reached a peak of over $140 [a barrel]," Taqa said in a filing to the Abu Dhabi Securities Exchange, where it is listed.

Taqa's net profit for the third quarter of 2008 stood at Dh723 million.

Taqa's shares fell 2.13 per cent, closing at Dh1.40 yesterday.

The basic earnings per share also fell during the quarter to Dh0.02, compared with Dh0.13 for the same period in 2008.

However, the company produced more oil at its assets during the third quarter, compared to the same quarter a year ago, and its sales generated 48 per cent of Taqa's revenues.

Total production in the third quarter was 132,600 barrels of oil equivalent per day, up from 110,500 barrels of oil equivalent per day in the third quarter of 2008, said Taqa.

For the first nine months this financial year, Taqa said both its net profit and revenue shrank. Its net profit for July-September quarter fell to Dh266 million from Dh1.6 billion in the same period of 2008, while total revenue was at Dh12.5 billion compared with Dh13.1 billion in the corresponding period a year earlier.