Taqa profits slump on North American gas prices

13 March 2013

Abu Dhabi energy group increases sales on strong power and water growth

Abu Dhabi National Energy Company (Taqa) reported a 6 per cent drop in operating profit for 2012 as oil and gas revenues were hit by lower North American gas prices.

The company’s earnings before interest, tax, depreciation and amortisation fell to AED13.13bn ($3.57bn), compared with AED14.01bn in 2011.

A the same time, Taqa’s revenues rose 15 per cent to AED27.79bn driven by the power and water sector, which was boosted by higher capacity at the Shuwiehat 2 plant in Abu Dhabi.

Oil and gas revenues were stable for the year as lower production across all Taqa’s producing regions and weak North American gas prices offset higher sales at Bergermeer in the Netherlands.

During 2012, Taqa acquired a majority stake in the Atrush exploration block in the Kurdistan region of Iraq – its first operated oil and gas asset in the Middle East North Africa (Mena) region. Its largest deal of the year was the agreement to acquire $1.1bn in North Sea oil assets from UK energy major BP.

In power and water, Taqa signed agreements to invest in projects in southern Turkey and Sulaymaniyah in Iraqi Kurdistan.  

The company is 72.5 per cent state owned, with the remaining shares floated on the Abu Dhabi Securities Exchange. It has a power generation capacity of 15,413MW and can produce 139,100 barrels of oil equivalent (boe) a day.

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