Abu Dhabi National Energy Company, TAQA, announced today its financial results and operational highlights for the nine-month period ended 30th September, 2019. TAQA recorded steady revenues of AED13.1 billion for the period, a slight decrease of three percent compared to the corresponding period in 2018.
According to a press release issued by TAQA on Thursday, revenues for the Power and Water segment remained stable at AED8.7 billion and were 9 percent lower at AED4.4 billion for the Oil and Gas segment due to lower volumes and realised prices in Europe. Global power technical availability averaged 94.5 percent with oil and gas production up 1 percent to 123,322 barrels of oil equivalent per day, boepd.
The Group also reported AED7.0 billion in Earnings Before Interest, Taxes, Depreciation, and Amortisation, EBITDA, a 5 percent reduction compared to the previous year, mainly driven by lower revenue along with reduced income from associates due to one-off insurance proceeds at Sohar Aluminium in 2018.
The Group’s overall capex marginally increased to AED1,221 million for the period, consistent with 2018 spend. Power and Water capex was focused on regular maintenance work predominantly across the UAE fleet, while Oil & Gas capex included bringing new wells on stream at TAQA Atrush and carrying out debottlenecking work to increase the capacity of volumes that can be handled by the production facility.
TAQA’s entitlement production has now reached 6,345 boepd, a 102 percent increase from 2018. Contributions to both revenues and EBITDA from the Atrush asset have increased significantly, up 95 percent and 106 percent respectively to AED357 million and AED222 million.
Consolidated net profit was negatively impacted by unfavourable mark-to-market movements generated by an energy price reduction and the reimplementation of the regional greenhouse gas initiative in New Jersey which impacted Red Oak, the Group’s US-based power asset. This was offset by positive movements in foreign exchange gains which were realised as a result of a weaker Euro and a reduction in current tax charges due to the decrease in taxable income within the Oil and Gas segment.
Therefore, the consolidated net income fell 21 percent to AED925 million with TAQA’s share of net profits down 54 percent to AED198 million compared to the nine-month period last year.
TAQA’s liquidity as of 30th September, 2019, remained strong at AED11.2 billion, including AED2.2 billion in cash and cash equivalents and AED8.9 billion of undrawn credit facilities. This reflected September’s redemption at maturity of TAQA’s US$500 million bonds carrying a 6.250 percent coupon that was later refinanced in early-October with a new bond of the same value, carrying a reduced coupon of 4.000 percent and due for repayment in 2049.
The Group continued its substantial progress in reducing debt, with a decrease of AED3.0 billion over the last nine months, which brings the Groups debt to AED63.3 billion at the end of the period.
Commenting on the year-to-date performance, Saeed Mubarak Al Hajeri, Chairman of TAQA, said, "TAQA’s results for the first nine months of 2019 come amid headwinds for the hydrocarbon industry and continue to be bolstered by strong and stable performance in our Power and Water business. In addition, the Group continues to reduce its debt position while maintaining strong liquidity. Our recent 30-year bond issuance and the overwhelming demand seen from investors is a testament to the stability of our overall business. Moving forward, we remain positive about greater opportunities to grow our power generation and water desalination business to achieve sustained growth."