Taqa revenue grows 5 per cent at Dhs9b during first half of 2019

The Abu Dhabi National Energy Company (Taqa) announced on Thursday its financial results and operational highlights for the six-month period ending June 30, 2019.

The company recorded Dhs9 billion of revenue in the first half of the year, a 5 per cent increase compared to H1 2018. The Group’s Oil and Gas business delivered strong performance with an 11 per cent increase in revenue, mainly driven by increased production volumes from its assets in Europe and Iraq. Revenues from the Power and Water business remained stable, increasing by Dhs73 million to reach Dhs5.7 billion.

For the first half of the year, the Group reported Dhs4.8 billion in EBITDA, which remained steady with H1 2018. Strong performance of the Group’s oil and gas business delivered a 15 per cent improvement in EBITDA of Dhs193 million.

The Group’s overall capex also rose to Dhs957 million in the first six months of 2019, a 15 per cent increase when compared to the same period in 2018. The increase in Oil and Gas capex was largely driven by the Dhs116 million acquisition of an additional 7.5 per cent working stake in the Atrush Block from Marathon Oil Kurdistan B.V. in May of this year. The acquired stake increases Taqa’s working interest in the project from 39.9 per cent to 47.4 per cent. Additional capex in Iraq was focussed towards bringing new wells on stream and the impact of debottlenecking work to increase the capacity of the current production facility. This has proven to be a worthwhile investment, with Taqa’s entitlement production increasing to 5,728 boe/d in H1 2019, a 149 per cent improvement compared to the previous year.

While Taqa continued to witness robust operational performance, the bottom line was somewhat impacted by one-off items. The Group reported a net profit (Taqa share) of Dhs214 million, compared to Dhs278 million in H1 2018 on the back of unfavourable mark-to-market (MTM) revaluations within its US-based power asset, an increased deferred tax charge due to changes in Alberta provincial tax rates and a reduction in share of results from investments in associates.

The Group’s operational highlights for H1 2019 included strong performance across its Power and Water business with total gross power generation of 42,122 GWh and 117,183 million imperial gallons (MIG) of gross water desalination. The Technical Availability across the fleet averaged 93.1 per cent, mostly consistent with the first half of 2018 at 92.5 per cent. The average production by the Oil and Gas business for the first half of the year increased 3 per cent to 124,760 boe/d, aided by strong well performance in Europe and Iraq.

Taqa’s liquidity as of June 30, 2019 remained strong at Dhs12.8 billion, including Dhs2.6 billion in cash and cash equivalents, and Dhs10.2 billion of undrawn credit facilities. Furthermore, the Group continued its substantial progress in reduction of debt that stood at Dhs64.5 billion, a decrease of Dhs1.8 billion compared to the total debt balance of Dhs66.3 billion as of December 31, 2018.

Commenting on the performance, Saeed Mubarak Al Hajeri, Chairman of Taqa, said, “Our solid performance in H1 2019 is underpinned by our strong operational performance. The Group’s balance sheet remains healthy, and with stable revenues and a further reduction in debt coupled with strong liquidity we remain on course to meet our long term objectives. The recent ratings affirmation from Moody’s is a testament to the stability of our operational performance.”

“We also made exciting progress in advancing our strategy of maintaining capital discipline with focused investments in our core assets, such as the Atrush Block. Looking ahead, we remain optimistic and believe that our investments in the UAE and other strategic markets will contribute to a sustained growth story.”

Taqa strives to run its company safely and sustainably, operating to the highest ethical standards. The company is proud to align its strategy to Abu Dhabi’s Economic Vision 2030, a road map for a sustainable economy with a focus on knowledge-based industry.

Taqa has investments in power generation, water desalination, oil and gas exploration and production, pipelines and gas storage. The company’s assets are located in Canada, Ghana, India, Iraq, Morocco, Oman, Saudi Arabia, the United Arab Emirates, Netherlands, United Kingdom and United States.

Taqa believes that energy has the power to improve lives and bring prosperity. From Abu Dhabi to new horizons, the company embraces the challenge of delivering affordable and reliable energy and water. That’s why, every day, the company its dedicated workforce deliver solutions that make a difference.

Agencies