Abu Dhabi National Energy Company’s (Taqa) profit surged by 160 per cent during the first half of 2010 to AED458m ($124.6m) over the same period last year.
Taqa says the year-on-year profit increase can be attributed to greater capacity in its domestic power and water business combined with more favourable oil and gas commodity pricing. The company recorded a 12 per cent annualised increase in power generation in the first six months of 2010.
The acquisition of a 40 per cent equity stake in Oman’s Sohar Aluminium Company from Abu Dhabi Water & Electricity Authority’s (Adwea) in June also added AED90m to its profit. The aluminium smelter and accompanying 1,000MW power plant provides Taqa access to a new market.
Total revenues increased by 16 per cent year-on-year during the first half of 2010 to AED9,917m.
Revenues from the sale of power and water during the second quarter increased 3 per cent year-on-year to AED 1.6bn. The increase was largely due to the expansion of the Taqa’s Taweelah A1 facility, which was commissioned at the end of the second quarter of 2009.
Upstream and midstream revenues stood at AED2bn at the end of June 2010, up from AED 0.2 billion compared to the same period last year. This 16 per cent increase was driven primarily by the increase in crude oil and natural gas liquid (NGL) prices, plus revenue generated from the acquisition of 100 per cent of the share capital of DSM Energie Holding from Netherlands-based Royal DSM in October 2009.
“Total revenues have continued the upward trend, which commenced at the end of 2009, benefiting from a more positive commodity pricing environment,” says Abdulla al-Nuaimi, chief executive and managing director of Taqa.
“While asset optimisation and organic growth form the cornerstones of our strategy, we remain opportunistic and open to bolt-on acquisitions, which consolidate our geographic footprint.”
In May this year, Taqa completed the refinancing of its subsidiary Taqa North’s AED4.59bn ($1.325bn) revolving credit facility. The facility was oversubscribed, leading to the company accepting the higher limit of its AED2.6bn to AED3.7bn target established at the beginning of the refinancing process.