The Abu Dhabi National Energy Company, also known as Taqa, has boosted its first-quarter profits by selling non-core assets.
Pre-tax profits jumped by 46 per cent year on year to Dh1.405 billion (US$382.4 million) as the company sold off gasfields in Canada and made a one-off gain on the purchase of an oilfield in the North Sea.
Revenue increased by 5 per cent to Dh5.7bn. Rising oil receipts on the back of surging prices were offset by a depressed natural gas market in North America, where Taqa holds significant interests.
"The first quarter of 2012 has seen steady performance from our portfolio of assets, against the backdrop of a stronger global oil price and weak North American gas prices," said Carl Sheldon, the chief executive of Taqa.
The state-controlled investor, which is listed on the Abu Dhabi Stock Exchange, made Dh378m from the sale of non-core assets in Canada. It received another Dh92m as a payout after the value of the Otter field in British waters changed between the initial purchase agreement in 2009 and the completion of the acquisition.
Oil and gas sales remained flat, despite a higher oil price.
New techniques for unlocking gas in shale rock in North America opens up the prospect of exporting gas to the European, Asian and even Middle East markets.
"Like every gas producer in North America, this is something we are looking into, even if there are no specific plans," said Mr Sheldon.
At present, neither the US or Canada have processing facilities capable of liquefying gas for tanker transport, and Mr Sheldon estimated the export infrastructure would take five years to develop. Once this trade route is established, Taqa could turn to using the gas storage facility in Bergermeer a depleted underground reservoir the company is developing in the Netherlands, for its Canadian gas. A Dutch court overruled environmental objections to the project earlier this month and Taqa expects to start storing gas there by 2014.
The company will be completing the purchase of a 50 per cent stake in a 1,000 megawatt power plant near Sulaymaniyah, Kurdistan, from Mass Global Investmentthis quarter, said Mr Sheldon.
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