Taqa first half net profit soars 160 per cent

Abu Dhabi: The Abu Dhabi National Energy Company, or Taqa, reported a huge 160 per cent increase in net profit for the first half of this year at Dh458 million compared to Dh176 million in the same period of 2009 on higher power and water capacity and increased oil and gas prices.

Profit for the second quarter of 2010 rose by 26 per cent to Dh171 million compared to Dh136 million in the same period last year.

Taqa's total revenues for the second quarter increased by 17 per cent due to higher supplemental fuel income and improved performance in the domestic power and water business.

The upstream and midstream businesses also benefited from the increase in commodity prices, which offset slightly lower production, the company said in a statement.

Revenues from the sale of electricity and water during the second quarter increased 3 per cent on-year to Dh1.6 billion.

The marginal increase was due to the expansion of Taweelah A1, which was commissioned at the end of the second quarter of 2009.

Upstream and midstream revenues in the second quarter were Dh2 billion, an increase of Dh200 million compared to Dh1.8 billion in the second quarter of 2009.

"The year-on-year increase in net profit can be attributed to greater capacity in our power and water business combined with more favourable commodity pricing in our oil and gas businesses. Additionally, the transfer of the Sohar aluminium plant with an effective date of January 1, 2010, added Dh90 million to our net profit," the company said.