Friday, May 11, 2012

Gulf News

Abu Dhabi Abu Dhabi National Energy Company (Taqa) reported a 251 per cent jump in net profits (after minority interests) to Dh534 million during the first quarter of 2012, up from Dh152 million reported for the corresponding quarter last year.

Its revenue increased five per cent to Dh5.74 billion compared to Dh5.48 billion, while assets grew one per cent to Dh116.151 billion, up from Dh114.69 billion in the corresponding quarter last year.

Finance costs increased from Dh1.1 billion in the first quarter of 2011 to Dh1.3 billion, largely due to the addition of project financing related to the completion of the Fujairah 2 and Shuweihat 2 plants.

Profit before tax was Dh1.4 billion, 46 per cent higher year-on-year than Dh961 million in the 2011 quarter, due to higher revenues as a result of the higher oil prices, stronger production in the UK North Sea, the increased power revenues due to Shuweihat 2 and Fujairah 2, and the gain on the disposal of North American non-core assets.

Positive step

Taqa’s income tax expense was Dh724 million compared to Dh650 million, an effective tax rate of 52 per cent, compared with 68 per cent in the year-ago quarter.

Energy analysts view Taqa’s investment in the Middle East a positive step.

“I think it makes sense because if you go back a few years they were more focused on North America and Europe,” said Robin Mills, an energy strategist and economist based in Dubai. The investment in Kurdistan is a “unique opportunity,” Mills said. “Although there’s a lot of political risk, it’s a place that’s largely accessibly and it’s at a time when there’s a need for gas and more electricity in the region,” he said.

Carl Sheldon, chief executive officer of Taqa, said: “The first quarter of 2012 has seen steady performance from our portfolio of assets, against the backdrop of a stronger global oil price and weak North American gas prices.

“We remain focused on our strategy of delivering organic growth with our key projects, such as the expansion at Jorf Lasfar in Morocco, where construction of units five and six continued on time and budget, and at Bergermeer gas storage, where last week we secured the final approval from the Dutch Council of State to proceed with construction.”

In addition to this organic growth, he said, the company continues to seek ways of streamlining and enhancing its portfolio. Taqa produced 14,172 GWh of electricity and 54,114 million gallons of water during the first quarter, generating total revenues of Dh1.9 billion.

The 13 per cent increase in revenues compared to the same period last year reflects the contribution of Shuweihat 2 which was fully operational in October 2011. Global technical availability was 91.3 per cent for the first quarter of 2012.

Total power and water revenues (excluding supplemental fuel income but including other operating revenues) increased from Dh1.7 billion in the first quarter of 2011 to Dh1.9 billion in the first quarter of 2012. The company’s total expenditure increased by three per cent to Dh3.5 billion from Dh3.4 billion in the 2011 quarter.

Fuel expenses were Dh959 million compared with Dh925 million in 2011. Increases were mostly due to higher fuel prices at Jorf and Takoradi, and were partly offset by reductions at UAE subsidiaries due to lower use of back up fuel in the current year.

Year on year total debt has remained stable at Dh74 billion while overall net debt decreased by Dh1.3 billion in part due to the cash proceeds received from the disposal of non-core Canadian acreage.

Stephen Kersley, chief financial officer, said: “We have seen our financial performance boosted during the quarter by our new capacity at Fujairah 2 and Shuweihat 2 contributing to five per cent growth in our EBITDA [earnings before interest, taxes, depreciation and amortisation] year on year.”

By Samia Badih?Staff Reporter

Gulf News 2012. All rights reserved.