Abu Dhabi's Taqa Q2 profit rises 26pct

Abu Dhabi National Energy Co, the state-run utility known as Taqa, reported a 26 per cent increase in second-quarter profit as it gained from foreign exchange transactions and higher commodity prices.

Net income rose to Dh171 million ($46.6 million) from Dh136m a year earlier, Taqa said today in a statement to the Abu Dhabi bourse. The company made foreign exchange gains of Dh116m in the quarter after a loss of Dh112m in the year-earlier period.

“Total revenues have continued the upward trend which commenced at the end of 2009, benefiting from a more positive commodity pricing environment,” Chief Executive Officer Abdulla Saif al-Nuaimi said in the statement. “We remain opportunistic and open to bolt-on acquisitions which consolidate our geographic footprint, fit naturally with our core competencies and offer the potential to increase our financial returns.”

Taqa profit increased along with oil prices, which rose to an average $78.05 in the quarter from $59.79 a year earlier. The company’s profit rose sevenfold in the first three months of the year after crude prices more than doubled from a low of $33.98 a barrel in 2009. Revenue for the second quarter rose to Dh5.14 billion from Dh4.38bn, the company said.

Taqa owns assets in oil and gas production and power generation in the Middle East, North America, the North Sea and India. The company in June bought 40 percent of Sohar Aluminium Co of Oman and part of Suncor Energy Inc’s assets in Alberta, Canada, for C$285 million ($278m).

The utility plans to spend $1.4bn this year on developing assets, al-Nuaimi said on a May 12 conference call. Taqa’s Canadian unit that month renewed a three-year revolving credit facility, allowing it to borrow as much as C$1bn to boost drilling in North America.

The company is also seeking to sell no more than 10 per cent of its oil and gas assets in Canada to raise cash to invest in local output, General Manager Carl Sheldon said in May. Taqa’s total assets at end of June were valued at Dh91.8bn.

Al-Nuaimi was appointed in April. He replaced Peter Barker- Homek, who left last year after the company made almost a dozen acquisitions in three years.

Taqa shares declined 3.2 per cent to Dh1.21 on Sunay. The stock has gained 1.7 per cent this year, valuing the company at Dh7.53bn.