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.
twitter: Follow our breaking business news and retweet to your followers. Follow us