Taqa profit doubles on higher oil prices and economic recovery

Overall revenue climbed 11.3% to about $3.3bn in the third quarter

Taqa’s Bergermeer storage facility in The Netherlands. The company has upstream and midstream assets in the UK North Sea, the Netherlands, Canada and the Kurdistan region of Iraq. Courtest: Taqa

Abu Dhabi National Energy Company, better known as Taqa, said its third-quarter net profit doubled due to improved economic growth and higher oil prices.

Net profit for the three-month period through to the end of September rose to Dh1.4 billion ($382m), from Dh700 million during the same period last year.

Overall revenue climbed 11.3 per cent to Dh12.08bn during the reporting period.

"Taqa has demonstrated strong financial performance this year, highlighting the company’s ability to deliver on our promises," said group chief executive and managing director Jasim Thabet.

"We have continued this journey with our recent announcement of the development of the Tanajib power and water project with Saudi Aramco and Marubeni, showcasing our tangible progress on our strategy to add up to 15 gigawatts of international generation capacity by 2030."

The 940-megawatt Tanajib cogeneration and desalination project will have a capacity of 1,084 tonnes per hour of steam and 5.25 million imperial gallons per day of desalinated water.

Taqa signed a water and energy conversion agreement with Japan's Marubeni Corporation to develop a greenfield industrial complex that includes provisions for supporting infrastructure such as pipelines to connect the desalination and cogeneration plants with end users.

The company's profit for the first nine months of the year nearly doubled, rising 92.6 per cent to Dh4.2bn, while revenue for the same period surged 150.6 per cent to Dh34.2bn.

The company's capital expenditure rose 25 per cent to Dh3.4bn, powered by the transmission and distribution segment.

Taqa's cash-flow amounted to Dh11.4bn during the period after the full repayment of corporate credit lines in the first half.

The company also pared down its gross debt by 10 per cent to Dh68.3bn at the end of 2020.

Taqa's oil and gas output also rose 2.5 per cent to 121,500 barrels of oil equivalent per day due to higher output from European fields, particularly in the UK.

The company plans to invest Dh40bn in infrastructure development, add about 27 gigawatts of power capacity by 2030 and expand its renewables portfolio.

Taqa has upstream and midstream assets in the UK's North Sea, the Netherlands, Canada and the Kurdistan region of Iraq. It also has assets in the UAE, Ghana, India, Morocco, Oman, Saudi Arabia and the US.

In September, Taqa said it was considering a possible sale of its oil and gas assets after a strategic review.

"As we look ahead, we will maintain our focus on growth, optimisation and capability building to deliver value and provide a reliable supply of energy and water to those we serve," said Mr Thabet.