A facility of Taqa. The company has operations in 11 countries including India, the US and Canada, in oil and gas as well as the water and power business. Image Credit: Supplied

Abu Dhabi: The Abu Dhabi National Energy Co (Taqa) recorded Dh431 million in profits for the first nine months, benefiting from higher oil prices.

This compares with a loss of Dh82 million for the same period last year.

Revenues are up by 8 per cent year-on-year to Dh13.5 billion, according to a statement issued by the firm listed on Abu Dhabi bourse. It reduced total debt by Dh3.7 billion, helped by a reduction in interest paid of Dh231 million compared to last year.

Financial turnaround

“Taqa has achieved a very strong financial turnaround in the last year, which is the result of three years of hard work to strengthen our business to withstand the most volatile of business cycles,” said Saeed Mubarak Al Hajeri, Chairman of Taqa.

“The company is now well positioned to implement our strategy for growth, which will combine attaining optimal returns from our oil and gas business, while maximising efficiency at current power and water assets and pursuing new opportunities in the utilities sector.”

The company has operations in 11 countries including India, the US and Canada, in oil and gas as well as the water and power business.

The oil and gas business is benefiting from higher oil prices, while its power and water business has also seen improved performance, mainly due to increased efficiency in its global assets, according to the company.

Capital expenditure increased

Revenues from oil and gas business during the nine-month period reached Dh4.8 billion, compared to Dh4.1 billion a year earlier, and the average daily production declined slightly to 122,000 barrels of oil per day.

UAE’s power generation was 48,989 GWh (gigawatt hours) for 2018’s first nine months, compared to 49,899 GWh generated in 2017, while internationally, power generation reached 20,375 GWh from 19,960 GWh. Revenues from power and water business remained stable at Dh8.7 billion.

Saeed Hamad Al Daheri, acting chief operating officer at Taqa, said they are continuing to invest with a targeted capital expenditure of Dh2 billion for this year, funded completely by the company’s cash flow from operations.

“Our aim is to ensure that our assets in both the oil and gas business, and the power and water business continue to experience improving operational and financial performance in the coming years.”

In the first nine months of 2018, free cash flow increased 1 per cent year-on-year to Dh5.6 billion, mainly due to an increase in cash flow from operations.