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TAQA Preliminary Financial Results for FY 2011

TAQA delivers robust operational performance

Gross profit up 20%, Net profit affected by one-off impairment plus increase in UK taxes

14 February 2012, Abu Dhabi, UAE - Abu Dhabi National Energy Company PJSC ( TAQA ), the international energy company (ADX: TAQA ), today reported its preliminary, unaudited financial results for the year ending 31 December 2011.

These preliminary results are subject to changes that may result from the final determination of certain accounting estimates.

Comprehensive, audited full year 2011 results are due to be published on 14 March 2012.



TAQA recorded a strong top line performance with a 14% increase in revenues due to higher oil prices, plus growth in its Power & Water portfolio. Gross Profit increased 20% compared with 2010 despite an impairment charge taken in North America. Net Profit decreased by 26% to AED 752 million in 2011 compared to 2010. The basic earnings per share decreased from 17 fils to 12 fils. Total assets decreased by 1% to reach AED 114,848 million in 2011.

The decline in total assets and net profit was partially due to a one-off impairment charge at TAQA North, following the annual revaluation of TAQA 's portfolio. The net impairment charge of AED 528 million, or 8 fils per share, reflects an impairment of AED 706 million, offset by a deferred tax benefit of AED 178 million.

In addition, profits were affected by additional taxes on UK oil and gas producing companies which came into effect on 24 March 2011. Income tax expense for the UK was AED 1,588 million higher in 2011, compared with 2010.

Comment

Carl Sheldon, Chief Executive Officer of TAQA , said:

" TAQA 's performance during 2011 is evidence of our operational maturity and our ability to identify new, exciting opportunities for growth. Across every aspect of our business we have continued to focus on driving these efficiencies while harnessing the opportunities our portfolio offers. An excellent example of this is the Falcon Field in the UK North Sea, which we identified and brought on-stream within two years, a record for the region, adding new production to our Oil & Gas portfolio.

"While financial performance was ultimately dampened by external factors beyond our control, our vigorous focus on costs and our proven ability to exploit opportunities, combined with the steps we have already taken to secure our future growth and financing, position TAQA for a strong start to 2012."

Corporate activity during 2011

During the 12 month period, TAQA completed the following corporate initiatives:

• December: TAQA raised US$ 1.5 billion in five and ten-year bonds in the international bond market. A portion of the proceeds of this issuance were used to pay back US$ 589 million of notes due in October 2012.
• October: Carl Sheldon appointed as Chief Executive Officer following H.E. Abdulla Saif Al Nuaimi's decision to focus on his role at ADWEA.
• May: Stephen Kersley is appointed as Chief Financial Officer following Doug Fraser's decision to retire and return to Canada.

In addition to the above, TAQA achieved the following milestones during 2011:

Oil & Gas

• December: 90% of the total 11TWh (1 BCM) of first season storage capacity is pre-sold at the Bergermeer Gas Storage facility in the Netherland to its three launch customers for durations of 4 - 10 years, subject to positive conclusion of regulatory appeal process.
• November: In the UK North Sea, TAQA complimented its existing operations by acquiring adjacent North Sea assets from Premier Oil PLC.
• October: TAQA made a strategic investment of $46.6mm in WesternZagros a Canadian based company with holdings in the Kurdistan region of Iraq. The acquisition expanded TAQA 's footprint to include oil & gas operations in the Greater MENA region.
• May: Final Bergermeer Gas Storage permits and approvals received to construct and operate the gas storage facility. A regulatory appeal process is outstanding and is expected to be resolved in the first half of 2012.
• Continued progress in the disposal of non-core assets in the North American portfolio, in line with the focussed strategy.

Power & Water

• October: Completion of Shuweihat 2 plant in Abu Dhabi, adding 1,500 MW of electricity generation and 100 MIGD of desalination capacity.
• July: Completion of Fujairah 2, a new 2,000 MW, 130 MGID plant in Fujairah.
• July: Signed a Memorandum of Understanding with Jyoti Structures Limited (Jyoti) to explore opportunities in the power sector in India, as well as to double TAQA ;s existing 250MW plant at Neyveli.
• March: Broke ground on TAQA 's expansion project at the Jorf Lasfar plant in Morocco, which will increase capacity by 700 MW.

Post-period items

• January: Appointment of Dr Saif Al Sayari as Executive Officer Energy Solutions responsible for developing the Company's alternative and technology-driven energy initiatives, reporting to Carl Sheldon, CEO. The Energy Solutions business has been created as part of TAQA 's strategy to compliment its existing operations with alternative and technology-driven energy initiatives.
• January: Two divestments totalling AED 1,835 million were agreed in North America relating to certain non-core land holdings and operating assets

Comprehensive, audited full year 2011 results are due to be published on 14 March 2012.

-Ends-

About TAQA
TAQA is a global energy company majority owned by the Abu Dhabi Government and listed on the Abu Dhabi Securities Exchange.

Its activities include oil and gas, power generation and water desalination across five continents.

With operations in the UK, the Netherlands, North America, the company's Oil & Gas business includes exploration and production, storage and pipelines. TAQA produces almost 137,000 barrels of oil equivalent per day as well as operating and developing extensive gas storage facilities in the Netherlands.

TAQA is one of the largest independent power producers in the world with power plants located in the United Arab Emirates, Oman, Morocco, Saudi Arabia, Ghana, India, and the United States. TAQA is the majority owner in the facilities that provide 98% of the water and electricity requirements in the Emirate of Abu Dhabi.

Established in 2005, TAQA 's entrepreneurial culture has laid the foundations for long-term sustainable growth building on its commitment to people, safety and the environment.

For further information:
TAQA Investor Relations, Abu Dhabi
Tanis Thacker, Head of Investor Relations
Tel +971 2 691 4933
Mohammed Mubaideen, Investor Relations Manager
Tel +971 2 691 4964
firstname.surname@taqaglobal.com

TAQA Media Relations, Abu Dhabi
Allan Virtanen, Head of Corporate Communications
Tel +971 2 691 4894
Mob +971 56 685 2717
firstname.surname@taqaglobal.com

© Press Release 2012