Abu Dhabi National Energy Co (TAQA) reported an almost fivefold jump in profit after crude prices climbed.
The Abu Dhabi National Energy Company’s (TAQA) net profit reached AED 278 million ($75.69 million) in the first half of 2018, 148 percent more than the year before, the company announced on Thursday.
According to the company, it is benefiting from higher commodity prices while its power and water business also saw improved performance. The company also reduced finance costs by cutting down on debt and issuing a $1.75 billion bond.
In H1 2018, the company recorded a 3 percent year-on-year rise in revenues to AED 8.6 billion ($2.34 billion), while EBITDA increased by 2 percent to AED 4.8 billion ($1.3 billion).
Additionally, the company reduced its debt by AED 1.6 billion ($435.6 million) during the first half of the year.
“TAQA’s performance has continued to improve this year due to prudent financial management and major achievements by our teams in enhancing operational efficiencies across both the oil and gas business, and the power and water business,” said TAQA chairman Saeed Mubarak Al Hajeri.
“The company is well positioned for growth, and we intend to deploy our deep international expertise on new initiatives, with a focus on power, where we expect strong demand in the coming years, especially in the Middle East and North Africa region.”
Saeed Hamad Al Dhaheri, TAQA’s acting chief operating officer, said that the “sustainable efficiencies” in TAQA’s business “have allowed our operations in Europe to benefit fully from the higher oil price environment, while we are also delivering healthy returns from our power and water business. The company’s strategy is to continue to optimize our assets.”
“That means deploying our expertise to extend the life of our oil and gas assets in Europe, and harnessing unconventional technologies and allocating greater capital to the production of liquids in North America,” he added.
TAQA’s power and water business – which includes assets in the UAE, Oman, India, Morocco, Ghana and the US – has continued to deliver income, with international operations improving from 85.2 percent in H1 2017 to 93.4 percent in 2018.
According to the TAQA results, the company’s completion of a $1.75 billion dual-tranche bond issue in April, which was 4.7 times subscribed, was key to reducing long-term financing costs.
During the first half, the company generated free cash flow of AED 3.4 billion ($925.66 million). Total liquidity remains strong at AED 14.6 billion ($3.97 billion).
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