Five-fold profit increase energises Abu Dhabi's Taqa

Abu Dhabi National Energy Company, also known as Taqa, has posted a five-fold increase in annual net profit after taking a series of steps to rationalise its asset portfolio and shave debt.

Posting preliminary, unaudited financial results for last year, Taqa today reported net profit of Dh937 million (US$255.3m), up from Dh182m in 2009.

Revenue rose 27 per cent last year to Dh21.35 billion.

"We have worked hard to harness efficiency and opportunity within our footprint while simultaneously adding to it with valuable and complementary transactions during 2010. The net result is a boost to the bottom line," said Abdulla al Nuaimi, the chief executive and managing director of Taqa, which is controlled by the Abu Dhabi Government.

The full-year results imply that Taqa's fourth quarter net income swung to a Dh261m profit last year from a Dh281m loss in the comparable 2009 period, while revenue increased 41 per cent to Dh6.23bn.

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Mr al Nuaimi attributed the turnaround partly to a "more positive commodity pricing environment" in the second half of last year.

"Combined with our rapid and tightly priced completion of necessary refinancing during 2010, we have started 2011 with confidence and conviction," he said.