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Taqa profits double as oil output improves

by Daria El Samad on May 15, 2014

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RELATED ARTICLES: North America impairment drags TAQA down l Abu Dhabi's TAQA issues 10-year $750mn bond l TAQA-led outfit to buy Indian hydroelectric plants

TAQA has announced a 158% increase in net profits for the first quarter of the year as a result of improving oil and gas output.

The Abu Dhabi-based water and energy company attributed the growth to a recovery in UK North Sea oil output, stronger natural gas prices in North America and higher technical availability in international power fleet.

Net profits stood at $67.2mn (AED247mn), up from $28.8mn (AED106mn), while total revenues rose to $1.98bn (AED7.3bn).

Stephen Kersley, chief financial officer, said: "Our first quarter result was helped by the restoration of North Sea oil production at Cormorant Alpha and higher natural gas prices in North America, but we also demonstrated our ability to increase capital efficiency and control costs.

"We are well positioned with ample liquidity, and look forward to driving continued improvement in earnings and coverage ratios."

Hydrocarbon production in the UK North Sea increased by 118%. In North America, oil and gas production was stable despite the lower capital expenditure environment while net realised prices were up by 22%.

In April, TAQA issued a 10-year $750mn bond, saying that it will use the proceeds to repay part of the $1.2bn of bonds scheduled to mature in September 2014.