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Taqa returns to profit in third quarter

Abu Dhabi, November 6, 2013

TAQA, the international energy company based in Abu Dhabi, today reported that it returned to profit in the third quarter of this year after posting a loss in the same period last year.

The company posted a net profit of Dh146 million ($39.74 million) in Q3 this year, compared to a loss of Dh288 million in the same period last year.

The positive figures were due to strong operational performances across its main divisions, following the successful resolution of a series of issues that had affected its UK Oil and Gas business and its Power and Water division, the company said.

However, total year to date net income was down to Dh80 million, compared to Dh693 million for the first nine months of 2012, it said.

The weaker year to date profit reflects reduced revenue due to the operational issues that have now been successfully resolved. In addition, the proceeds of a number of disposals in 2012, principally consisting of Tesla stock and excess North American acreage, complicate any direct comparison between the periods, the company said.

Total revenues for the first nine months (9M) of 2013 were Dh18.7 billion, 9 per cent lower year-on-year, compared with total revenues of Dh20.6 billion for the same period in 2012. The decline was principally the result of the shut-in of production at Cormorant Alpha in the North Sea at the beginning of the year, combined with lower construction revenue over the first three quarters of 2013, it said.

The decline was offset by additional capacity acquired in the UK at the end of June, it said.

Total revenues in Q3 2013 was almost Dh6.1 billion compared to Dh4.5 billion in the second quarter of 2013, excluding fuel and construction revenues, reflecting a 36 per cent increase in underlying revenues, as key operations returned to full production, it said.
The company demonstrated resilient cash generation of Dh8.2 billion, and maintained its robust financing position, with Dh4.0 billion in cash and cash equivalents.

The refinancing for the Shuweihat 2 power and desalination plant was successfully completed, raising Dh3.0 billion of non-recourse project bonds, it said.

At the end of the period, Taqa had four major projects underway. They are the expansion of the Jorf Lasfar power plant, due to be completed next year; the Takoradi plant in Ghana, due in 2015; the completion of the Bergermeer Gas Storage complex in the Netherlands and the Atrush oil and gas field in the Kurdistan region of Iraq.

Taqa confirmed all four projects were on schedule and within budget.

Carl Sheldon, chief executive officer, said: “I am proud of the strong operational performance across the company as we recovered from the challenges faced in the first half of the year. In the UK, seamless integration of the assets we acquired in the Central North Sea, combined with the restoration of production at Cormorant Alpha, led to record levels of production in September. In October, the first of the two new units at Jorf Lasfar in Morocco was synchronised with the national grid, a major milestone in the full commissioning of both units by early 2014.”

Overall gross profit was Dh5.4 billion in the first nine months of 2013, compared to Dh6.2 billion for the same period last year. The decline was primarily driven by the operational challenges earlier in the year, principally in the Oil & Gas division, which have been resolved, the company said.

Overall profit before tax was Dh1.1 billion in nine months, 65 per cent lower year-on-year than Dh3.2 billion in 2012. The decline was attributable to the aforementioned operational challenges but also included the impact of a number of non-recurring, non-operational events that make direct comparison difficult.

The 2012 results benefited from gains on sales totalling Dh789 million from the disposal of the company’s investment in Tesla Motors and of non-core acreage in North America. Performance was further affected by foreign exchange losses of Dh45 million primarily related to Taqa’s exposure to the Indian rupee. - TradeArabia News Service

Tags: abu dhabi | Taqa | Oil |

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