Abu Dhabi National Energy Company (Taqa) on Thursday reported a consecutive quarterly profit compared with a year earlier loss, on the back of higher oil and gas revenues as the company presses on with a two-year restructuring program.
The company’s profit attributable to equity holders of the parent was Dh35 million in the second quarter, compared with a loss of Dh588m in the same period last year. Quarterly revenue was Dh4.21 billion in the three months ending in June, compared to the previous year at Dh4.04bn.
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"Against the backdrop of a prolonged lower oil and gas price environment, Taqa will continue to concentrate on safe and efficient operations while looking for opportunities to optimise our portfolio," the company said in a statement.
For the first half of the year, Taqa had a 5 per cent increase with revenues at Dh8.4bn, which the company said was mostly driven by the impact of higher realised oil and gas prices. Saeed Al Dhaheri, Taqa’s acting chief operating officer, said that the first half results were driven by “strong operational performance, continued efficiency improvements and a focus on core operations”.
Taqa, majority owned by Abu Dhabi Water and Electricity Authority (Adwea), began slashing investment in 2015 while divesting in some of its assets in Canada.
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Operating in 11 countries, Taqa’s downstream power assets are strong with a near monopoly in Abu Dhabi as well as plants in Oman, Saudi Arabia India, Ghana, Morocco and the US. Power generation output has remained stable so far this year.
But on the horizon is Atrush project in the Kurdistan region of Iraq after oil production began last month. “Atrush will be a significant contributor to the group’s long-term cash flows and net income,” said Mr Al Dhaheri.
Taqa is operator of the block, located 85 kilometres of Erbil, with initial production expected to produce 30,000 barrels of oil equivalent per day this year.
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Mr Al Dhaheri added that Taqa would continue to concentrate on efficiency while looking for ways to optimise the company’s portfolio.
The Abu Dhabi-listed company shares opened at 50 fils.
