TAQA doubles quarterly profit over 2010

Abu Dhabi's energy giant makes AED 537 mn profit on AED 6.2 bn revenue

Abu Dhabi's energy giant makes AED 537 mn profit on AED 6.2 bn revenue, party from a hike in North Sea oil production.
Abu Dhabi's energy giant makes AED 537 mn profit on AED 6.2 bn revenue, party from a hike in North Sea oil production.

The Abu Dhabi National Energy Company, known as TAQA, has more than doubled quarterly profit over Q3 2010 on the back of high oil prices, increased production, and expanded operations in its utilities arm.

During the third quarter of 2011 TAQA generated total revenues of AED 6.2 billion, 19% higher year on year, resulting in EBITDA of AED 3.7 billion and Net Profit after Minority Interests of AED 537 million – more than double the profit for the same period last year.

The oil & gas segment of the business saw dramatic growth, with revenues up from AED 1.7 billion in Q3 2010 to AED 3 billion in Q3 2011, a 71% increase.

Total average global daily production for Q3 2011 marginally increased to 138.5 mboe/day, compared with 136.8 mboe/day in Q3 2010, within guidance for FY 2011. Production volumes in the UK North Sea averaged 43.5 mboe/day in the third quarter, an 8% increase compared to the same period last year due to two key additions.
Production in the Netherlands averaged 7.6 mboe/day, a 10% decrease compared to the same period last year but within management guidance for the year.

“TAQA’s growth and exceptional operational performance is evident in this positive set of results, which reflect the continued commitment of the Board and management team in building TAQA into a world-class, diversified energy company,” commented H.E Abdulla Saif Al Nuaimi, Vice Chairman of TAQA, in a company statement.

“Global demand for fuel and power continues to grow, with Middle Eastern markets, in particular, demonstrating attractive supply/demand dynamics,” said Carl Sheldon, TAQA’s CEO. “TAQA’s operational excellence and experience positions us well to meet this demand. The recently announced WesternZagros deal in the Kurdish region of Iraq is an example of us growing our footprint in the IMENA region and entering new countries with attractive market dynamics, in line with our stated strategy.”

On 2 October, TAQA announced it had established a 3.5 billion Malaysian Ringgit programme ($1.1 billion) as it continues to diversify its financing options. The programme will allow TAQA to issue debt swiftly when market conditions are optimal.

Secondly, on 17 October, TAQA announced a strategic investment agreement with WesternZagros Resources Ltd. Under the terms of this agreement, TAQA will purchase shares for a total of CDN$46.6 million or 19.9% of the company. The proceeds from the private placement will be used towards WesternZagros’s 2011/2012 capital and operating program in Kurdish region of Iraq, in line with TAQA’s stated strategy to start building its Oil & Gas footprint in the IMENA region.

In November, TAQA announced the intention to acquire a 16.6% non-operated working interest in Blocks 210/29a and 210/ 30a in the Cladhan area of the UK Northern North Sea for a consideration of $54.8 million. The blocks are located 18 kilometers southwest of the TAQA-operated Tern platform, TAQA has also agreed to farm-in to Blocks 28/5, 29/1d and 28/10a located in the Central North Sea, which includes the Coaster prospect.

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