Abu Dhabi National Energy Company (Taqa) reported that its full-year net profit fell by more than a quarter, as the state-owned investor was hit by a one-off charge and higher taxes on its UK assets.
Net income fell by 26 per cent compared with a year earlier to Dh752 million (US$204.7m), while revenues grew by 14 per cent to Dh24.4 billion, preliminary results released yesterday show.
The company's total assets decreased by 1 per cent, and were valued at Dh114.8bn at the end last year.
Profit shrank as the company was hit by an impairment charge arising from the re-evaluation of its assets in Canada, held by its Taqa North division.
The impairment of Dh706m resulted in a charge of Dh528m after a deferred tax benefit had been deducted.
"[Taqa's] financial performance was ultimately dampened by external factors beyond our control," said Carl Sheldon, the chief executive of Taqa.
Taqa North, an oil and gas exploration and production operation based in Calgary, holds assets in Alberta, British Columbia, Saskatchewan, and the Northwest Territories.
Net income was also affected by additional taxes levied on oil and gas companies in the UK, which came into effect in March. Taqa paid almost Dh1.6bn more in UK taxes last year than in the previous year.
Taqa, which is majority-owned by Abu Dhabi Electricity and Water Authority (Adwea) and in turn holds the bulk of Abu Dhabi's power generation infrastructure, is poised to win the contract for Dubai's first power plant to operate as a public-private partnership after submitting the lowest bid for the project.
The company expanded its regional footprint by acquiring a stake in WesternZagros, a Canadian oil and gas company that holds concessions in Iraqi Kurdistan.
The company also established a business unit, Energy Solutions, which is tasked with developing an alternative-energy portfolio.
Energy Solutions is already bidding for wind farm projects in Morocco.
Taqa is to release its audited results on March 14.
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Company profile
Name: Back to Games and Boardgame Space
Started: Back to Games (2015); Boardgame Space (Mark Azzam became co-founder in 2017)
Founder: Back to Games (Mr Azzam); Boardgame Space (Mr Azzam and Feras Al Bastaki)
Based: Dubai and Abu Dhabi
Industry: Back to Games (retail); Boardgame Space (wholesale and distribution)
Funding: Back to Games: self-funded by Mr Azzam with Dh1.3 million; Mr Azzam invested Dh250,000 in Boardgame Space
Growth: Back to Games: from 300 products in 2015 to 7,000 in 2019; Boardgame Space: from 34 games in 2017 to 3,500 in 2019
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A High Court judge issued an interim order on Friday suspending a decision by Agriculture Minister Edwin Poots to direct a stop to Brexit agri-food checks at Northern Ireland ports.
Mr Justice Colton said he was making the temporary direction until a judicial review of the minister's unilateral action this week to order a halt to port checks that are required under the Northern Ireland Protocol.
Civil servants have yet to implement the instruction, pending legal clarity on their obligations, and checks are continuing.
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COMPANY PROFILE
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Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
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Total funding: Self funded