![TAQA drilling under highway A9, Alkmaar The Bergermeer gas storage is an underground natural gas storage in the Alkmaar region north of Amsterdam in the Netherlands. When finished it will be one of the largest gas storages in Europe. The Bergermeer project consortium consists of TAQA Energy B.V. (a subsidiary of the Abu Dhabi National Energy Company), Energie Beheer Nederland (EBN), Dyas B.V. and Suncor.[5] The facility will be operated by TAQA Energy. Courtesy Eric de Vries / TAQA *** Local Caption *** 14-02-21-BKM-EDV_0474.JPG](https://thenational-the-national-prod.cdn.arcpublishing.com/resizer/v2/2TEYSSQK5ZGJVYXAXTXGJOH4I4.jpg?smart=true&auth=5f58b2b61d5e84393f367f7691f765815c629bcdde862b51cd57baa00ee47af7&width=800&height=532)
Abu Dhabi National Energy Company, or Taqa as it is better known, said second quarter profit surged 24 per cent as revenue climbed on higher oil and gas production.
The state-owned company's profit attributable to shareholders was Dh208 million in the three months ending June 30, Taqa said on Thursday in a regulatory filing to the Abu Dhabi stock exchange, where its shares are traded.
Quarterly revenue climbed 9 per cent to Dh4.66 billion year-on-year.
“Our solid performance … is underpinned by our strong operational performance,” Saeed Mubarak Al Hajeri, chairman of Taqa, said in a statement. “The group’s balance sheet remains healthy, and with stable revenue and a further reduction in debt coupled with strong liquidity we remain on course to meet our long term objectives.”
State-owned Taqa, in which Abu Dhabi Power Corporation holds a majority stake, posted Dh9bn in revenue for the first half of 2019, up 5 per cent year-on-year. Taqa attributed increased production volumes from company-owned assets in Europe and Iraq for the growth in sales volumes.
However, first-half profit dipped 23 per cent year-on-year to Dh214m. The company, which operates in 11 countries, said this was due to "unfavourable mark-to-market (MTM) revaluations within its US-based power asset, an increased deferred tax charge due to changes in Alberta provincial tax rates and a reduction in share of results from investments in associates."
The Group’s overall capex rose 15 per cent year-on-year to Dh957m in the first six months of 2019. An increase in oil and gas capex was largely driven by the Dh116m acquisition of an additional 7.5 per cent stake in the Atrush Block from Marathon Oil Kurdistan in May this year to take Taqa’s working interest in the project to 47.4 per cent, the company said.
Oil and gas production increased 3 per cent to 124,760 barrels of oil equivalent per day during the first half of 2019.
Liquidity as of June 30, 2019 remained strong at Dh12.8bn, including Dh2.6bn in cash and cash equivalents, and Dh10.2bn of undrawn credit facilities. Debt stood at Dh64.5bn, with Dh1.8 billion having been paid down during the first half of the year, according to the company.
In July Moody's Investors Service affirmed Taqa's long-term issuer rating and upgraded the state-controlled oil and gas investment company's baseline credit assessment (BCA) on improved operational performance.
The ratings agency affirmed an A3 long-term issuer rating with a stable outlook, reflecting expectations that Taqa will continue to benefit from state support, Moody's said. It also upgraded Taqa's BCA by a notch to B1 from B2.
"The upgrade of Taqa's BCA reflects Moody's view that the stabilisation of the operating performance of the oil and gas operations, and a gradual reduction in gross debt, have contributed to a slow improvement in the company's consolidated credit metrics," Moody's said.
