Dubai: The Abu Dhabi National Energy (Taqa) said on Thursday that its net income for the second quarter more than tripled due to improved stability in oil and liquid prices.
Net income for April to June 2018 rose to Dh168 million, from Dh35 million in the same period in 2017, the company said in a statement.
Revenues came in at Dh4.3 billion in the June quarter compared to Dh4.211 billion, with the benefits of higher oil prices in the quarter more than offsetting declines in hydrocarbon production as well as the lower North American gas price environment, relative to the second quarter of 2017.
Net income for the first half to June jumped 148 per cent to Dh278 million, compared to Dh112 million in the same period last year. Revenues in the first half rose to Dh8.6 billion from Dh8.4 million in the same period last year.
“Taqa’s performance has continued to improve this year due to prudent financial management and major achievements by our teams in enhancing operational efficiencies across both the oil and gas business, and the power and water business,” Saeed Mubarak Al Hajeri, Taqa chairman, said in a statement.
“The company is well positioned for growth, and we intend to deploy our deep international expertise on new initiatives, with a focus on power, where we expect strong demand in the coming years, especially in the Middle East and North Africa region,” he added.
Across the six-month period, the company said it reduced its total debt by Dh1.6 billion during the first half, and the cash interest paid on its debt decreased by Dh157 million in the first half, compared to a year earlier.
In 2018, Taqa continued to strengthen its balance sheet. The company’s completion of a $1.75 billion dual-tranche bond issue in April, which was 4.7 times subscribed, was key to reducing long-term financing costs.
During the first half, the company generated free cash flow of Dh3.4 billion. Total liquidity remains strong at Dh14.6 billion, including Dh4.0 billion in cash and cash equivalents and Dh10.6 billion of undrawn credit facilities.
International operations have improved substantially from 85.2 per cent in the first six months of 2017 compared to the current 93.4 per cent in 2018, mostly driven by the performance of the plant in Ghana.
Taqa’s power and water business — which includes assets in the UAE, Oman, India, Morocco, Ghana and the US — continues to deliver steady income, the company said.