Abu Dhabi's TAQA reports 42% rise in net profits in Q1 2018
Abu Dhabi National Energy Company (TAQA) has recorded a 42% rise in net profit at $30m (AED110m) for the first quarter of 2018, compared to a net income of $21m (AED77m) in the same period last year
Abu Dhabi National Energy Company (TAQA) has recorded a 42% rise in net profit at $30m (AED110m) for the first quarter of 2018, compared to a net income of $21m (AED77m) in the same period last year.
The global player, which is based in Abu Dhabi and operates in 11 countries, recorded a total net profit of $44m (AED160m) in 2017, according to chairman Saeed Mubarak Al Hajeri, as reported by Arabian Business.
Last month, the firm successfully raised $1.75bn through a bond issue that saw strong demand from global investors. It is currently concentrating on optimising its oil and gas assets, exploring opportunities in power and water, Al Hajeri added.
Total company revenues also rose 5% in the first three months of 2018 at $1.1bn (AED4.3bn), compared to around $1bn (AED4.1bn) in 2017, mainly due to higher commodity prices that benefitted the oil and gas sector.
Saeed Hamad Al Dhaheri, acting COO, said: “Our international power and water business remains robust, and we look forward to leveraging our expertise in this sector, as we seek further growth opportunities.”
However, earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped 4% from $653m (AED2.4bn) in 2017 to $626m (AED2.3bn) in 2018, largely due to movements in Forex and stock, as well as increased tariff and trading expenses.
Free cash flow also decreased 22% to $436m (AED1.6bn) from $544m (AED2.0bn) n 2017, thanks to lower EBITDA.
On the other hand, total liquidity remains strong at $3.4bn (AED12.6bn), including $980bn (AED3.6bn) in cash and cash equivalents as well as $2.4bn (AED8.9bn) of undrawn credit facilities, company figures show.
During the same period, TAQA’s total debt was reduced by $215m (AED790m), while the total interest paid was decreased by $16m (AED58m) compared to 2017.
The firm has also been seeking growth opportunities in power and water. Its UAE operations produced 12,157 GWh of electricity and 56,273 MIG of desalinated water, meeting the majority of Abu Dhabi’s water and electricity requirements.