H1'19 revenues at UAE's Taqa up by 5% amid strong oil & gas business
The company posted a 23% decline in H1 2019 net profit that stood at $58m, compared to $75.7m in H1 2018
Abu Dhabi National Energy Company (Taqa) has recorded a 5% spike in its H1 2019 revenues to reach $2.5bn (AED9bn) revenue compared to corresponding figures in the same period last year.
The Abu Dhabi Stock Exchange-listed (ADX) company recorded a 23% decline in H1 2019 net profit that stood at $58m (AED214m) compared to $75.7m (AED278m) in H1 2018.
The company attributed the fall in profit 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.
Taqa’s oil and gas business posted an 11% growth in revenue, driven by increased production volumes from its assets in Europe and Iraq. The average production by the oil and gas business increased 3% to 124,760 boe/d, on the back of strong performance in Europe and Iraq.
Meanwhile, revenues from the power and water business remained stable, increasing by $19.9m (AED73m) to reach $1.6bn (AED5.7bn).
In the first half of 2019, the company posted gross power generation of 42,122 GWh and 117,183 million imperial gallons (MIG) of gross water desalination.
Oil and gas business for the first half of the year increased 3% to 124,760 boe/d, aided by strong well performance in Europe and Iraq.
Taqa’s liquidity as of 30 June, 2019 remained strong at $3.4bn (AED12.8bn) which included $707.8m (AED2.6bn) — in cash and cash equivalents, and $2.8bn (AED10.2bn) of undrawn credit facilities.
Commenting on the results, chairman of Taqa, Saeed Mubarak Al Hajeri, said: "The group’s balance sheet remains healthy, and with stable revenues and a further reduction in debt coupled with strong liquidity we remain on course to meet our long term objectives.”
Al Hajeri added: "We also made exciting progress in advancing our strategy of maintaining capital discipline with focused investments in our core assets, such as the Atrush Block.”