The energy company's revenue rose 5 per cent in the first quarter
Taqa bounces back with 42% gain in Q1 profit on higher energy prices
The Abu Dhabi Energy Co., also known as Taqa, posted a 42 per cent rise in first-quarter net profit, boosted by higher energy prices and improvement in the company’s power and water business.
The company which has operations in Abu Dhabi, Iraq, Canada and Europe said net income advanced to Dh110 million in the first three months of the year from the same period a year earlier. Total revenues rose 5 per cent to Dh4.3 billion, the company said in an emailed statement. Earnings before interest, taxes, depreciation and amortization fell 4 per cent in 2017 to Dh2.3bn compared to Dh2.4bn in the same period last year due to forex losses and increased tariff and trading expenses.
“Taqa’s performance continues to improve steadily, underpinned by our focus on driving sustainable efficiencies through the business,” said Saeed Mubarak Al Hajeri, Taqa’a chairman. “The company is continuously strengthening its financial position," Mr Al Hajeri added citing the successful raising last month of $1.75bn through a bond issue to help the company refinance exiting debt.
"Taqa is concentrating on optimizing its assets in the oil and gas business while studying growth opportunities in the power and water sector,” he said.
Taqa’s global power and water business produced 18,773 gigawatt hours (GWh) in the first quarter of 2018 compared to 18,516 GWh in the corresponding period last year. The company’s UAE operations produced 12,157 GWh of electricity and 56,273 million imperial gallon of desalinated water in the first quarter.
“Our oil and gas business continues to feel the benefit of the sustained cost efficiencies and higher hydrocarbon prices,” said Saeed Hamad Al Dhaheri, Taqa’s acting chief operating officer."