Oil & Gas News
In association with www.TradeArabia.com

Abu Dhabi Taqa's nine-month revenue hits $3.53bn



Abu Dhabi National Energy Company (Taqa) has reported a steady revenue of Dh13 billion ($3.53 billion) for the nine-month period ending September 30, 2019, a slight decrease of three per cent compared to the corresponding period last year.
Announcing its financial results, Taqa said its revenues for the power and water segment remained stable at Dh8.7 billion and were 9 per cent lower at Dh4.4 billion for the Oil and Gas segment due to lower volumes and realised prices in Europe. 
Global power technical availability averaged 94.5 per cent with oil and gas production up 1 per cent to 123,322 barrels of oil equivalent per day, boepd, it stated.
The group also reported Dh7 billion in earnings before interest, taxes, depreciation and amortisation (ebitda), a 5 per cent reduction compared to the previous year, mainly driven by lower revenue along with reduced income from associates due to one-off insurance proceeds at Sohar Aluminium in 2018.
The Group’s overall capex marginally increased to Dh1.22 billion for the period, consistent with 2018 spend. 
Power and Water capex was focused on regular maintenance work predominantly across the UAE fleet, while Oil & Gas capex included bringing new wells on stream at Taqa Atrush and carrying out debottlenecking work to increase the capacity of volumes that can be handled by the production facility.
Taqa’s entitlement production has now reached 6,345 boepd, a 102 per cent increase from 2018. Contributions to both revenues and ebitda from the Atrush asset have increased significantly, up 95 per cent and 106 per cent respectively to Dh357 million and Dh222 million.
Consolidated net profit was negatively impacted by unfavourable mark-to-market movements generated by an energy price reduction and the reimplementation of the regional greenhouse gas initiative in New Jersey which impacted Red Oak, the Group’s US-based power asset. 
This was offset by positive movements in foreign exchange gains which were realised as a result of a weaker Euro and a reduction in current tax charges due to the decrease in taxable income within the Oil and Gas segment.
Therefore, the consolidated net income fell 21 per cent to Dh925 million with Taqa’s share of net profits down 54 per cent to Dh198 million compared to the nine-month period last year.
Taqa’s liquidity as of 30th September, 2019, remained strong at Dh11.2 billion, including Dh2.2 billion in cash and cash equivalents and Dh8.9 billion of undrawn credit facilities. 
This reflected September’s redemption at maturity of Taqa’s $500 million bonds carrying a 6.250 per cent coupon that was later refinanced in early-October with a new bond of the same value, carrying a reduced coupon of 4.000 per cent and due for repayment in 2049.
The Group continued its substantial progress in reducing debt, with a decrease of Dh3.0 billion over the last nine months, which brings the Groups debt to Dh63.3 billion at the end of the period.
Commenting on the performance, Chairman Saeed Mubarak Al Hajeri said: "Taqa’s results for the first nine months of 2019 come amid headwinds for the hydrocarbon industry and continue to be bolstered by strong and stable performance in our Power and Water business. In addition, the Group continues to reduce its debt position while maintaining strong liquidity."
"Our recent 30-year bond issuance and the overwhelming demand seen from investors is a testament to the stability of our overall business. Moving forward, we remain positive about greater opportunities to grow our power generation and water desalination business to achieve sustained growth," he added.-TradeArabia News Service