Press Release

Preliminary Financial Results for the Year 2009

TAQA delivers full year profit during challenging business environment
Well positioned to develop substantial organic growth opportunitiesAbu Dhabi, UAE – Abu Dhabi National Energy Company PJSC, a publicly listed company on the Abu Dhabi Securities Exchange (ADX: TAQA), today reported preliminary financial results for the period ended 31 December 2009. These are unaudited preliminary results, subject to changes that may be caused by the final determination of certain accounting estimates.Preliminary revenues increased by 0.8% to AED 16,942 million, from AED 16,806 million in 2008. Total assets grew by 6% to reach AED 91.7 billion in 2009. The company’s preliminary profits for the year were AED 183 million down from AED 1,825 million in 2008 due to lower commodity prices. Basic earnings per were 3 fils compared with 36 fils for 2008.Commenting on the preliminary results, TAQA General Manager Carl Sheldon said:“2009 marked a pivotal year for TAQA. The diversification of our portfolio demonstrated its value as the solid revenues from our downstream portfolio offset lower commodity prices in our upstream businesses.We shifted into a new phase of our growth strategy – evolving from an acquisitive company into one focussed on organic growth and asset optimisation. We are committed to integrating our assets to realise their full potential. We have substantial opportunity to drive organic growth within our business, with the Jorf Lasfar expansion, Fujairah 2 transfer and Bergermeer Gas Storage, and new drilling programmes in the Northern North Sea and the Horn River Basin.I am pleased to report that we continue to make good progress towards our key long-term target of 70% debt to capital. During 2009, this ratio was reduced from a high of 88% at the end of 2008 to 82% at the end of 2009.While the economic environment remains challenging, I am optimistic that TAQA’s diversified asset portfolio, experienced management team, reliable cashflows and strong liquidity will enable the company to meet the demands of a new decade.”Corporate activity during 2009During the period, TAQA continued its bond buyback programme, with a AED 260 million gain recorded in 2009 from the buyback of its 2036 bonds of a nominal value of US$ 323 million. TAQA continues to evaluate the potential for further bond buybacks.In February 2009, TAQA announced a share buyback programme of up to 10% (622.5 million shares) of the share capital of the firm. During 2009, TAQA repurchased 158.7 million shares.At the Annual General Meeting held on 21 April 2009 the shareholders of the Company approved the payment of a dividend of 15 fils per share totalling AED 933 million which was paid on 21 May 2009.In September, TAQA launched a very successful bond transaction, raising US$ 1.2 billion in five year notes and US$ 500 million in 10 year notes. The proceeds of this issuance were used to finance the DSM acquisition, with the remainder paying down outstanding credit facilities.In October, TAQA announced a restructuring of its senior management team, as the Company moved into a new phase of development. As part of the management restructuring, Carl Sheldon was promoted to General Manager.At the end the year, impairment charges were recorded in our Upstream business as a result of our annual reserve evaluations. At TAQA Bratani, we recorded an after tax charge of AED 112 million with respect to our Brae assets. In TAQA North, an after tax charge of AED 116 million was recorded primarily related to our natural gas properties. These charges are included in the financial information provided above. A detailed description of our reserves will be provided with our final year end results.In addition to the above, TAQA achieved the following milestones during 2009:DownstreamIn March, TAQA completed the US$ 320 million acquisition of a 50% equity stake in Marubeni’s Caribbean energy power portfolio. The deal increased TAQA’s power generation capacity to 12,909 MW (gross) from 10,609 MW; and extended TAQA’s energy value chain to power transmission and distribution.ADWEA announced in April its intention to transfer 90% of its holding in Fujairah Water and Electricity Company to TAQA. Fujairah Water and Electricity Company holds a 60% interest in the Fujairah 2 power and water plant, currently under construction and expected to be commissioned in mid-2010.In May, TAQA signed an agreement with the Office National de L’Eléctricité in Morocco to expand the capacity of the Jorf Lasfar power plant by adding two new coal-fired units of at least 350 MW each by 2013. This expansion will help the Office National de l’Eléctricité meet the strong growth in electricity demand in Morocco. The new units will be built, owned, and operated under a new 30-year power purchase agreement. Currently the Jorf Lasfar plant is comprised of four units, with a total capacity of 1,356 MW, providing about half of Morocco’s annual electricity production.MidstreamIn relation to the Bergermeer Gas Storage project, positive advice was received from the Environmental Impact Assessment (EIA) Commission. This marked an important milestone and following the Commission’s advice, the EIA and the related consultations were completed allowing the project to move into the permitting phase.Later in the year, the project consortium (TAQA, EBN, Dyas and Suncor) achieved two important milestones. First, an agreement was reached with Gazprom to provide cushion gas in exchange for working capacity. Secondly, the consortium and Gazprom confirmed the final investment decision on the project. The consortium will invest €800 million in the construction and design of the gas storage facility between 2009 and 2013. TAQA is the operator and holds a 36% interest in the project. Bergermeer Gas Storage is on schedule to become north west Europe’s largest commercial underground gas storage and will contribute to the development of the Netherlands into a main gas hub.TAQA Energy purchased 100% of the share capital of DSM Energie Holding B.V. (DSM Energy) for €285 million, spanning both its upstream and midstream portfolios. TAQA Energy acquired non-operated interests in the pipeline company Noordgastransport B.V. (NGT), three other pipelines and 20 producing oil and gas fields in the Dutch North Sea. Furthermore, the assets provide TAQA Energy with additional daily production of approximately 5,000 barrels of oil equivalent (2008 average) of which 85% is natural gas.Upstream
TAQA North acquired two large land blocks in the highly prospective Horn River Basin in North Eastern British Columbia, Canada for a total of CAD$ 63 million. The sale represented the last substantial blocks of land available in the basin, which is expected to provide a major North American source of natural gas.In August, TAQA Bratani took over as operator of the North Sea Brent System pipeline and facilities from Shell UK Exploration and Production, which held the position since the mid 1970s. TAQA Bratani also completed the acquisition of four exploration blocks in the Northern North Sea from Shell U.K. Limited and Esso Exploration and Production (UK) Limited.In October, TAQA Bratani brought its first North Sea oil well on stream. The well was drilled from the TAQA Bratani operated North Cormorant platform and was completed safely, on time and within budget. The initial production of this well was 10,000 barrels of oil per day.TAQA Energy acquired a 15% interest in the L8-D Unit, L11b-A production platform which services the L8-D gas field, and a pipeline connection to the Noordgastransport pipeline. TAQA Energy was also appointed as operator to the L11b-A production platform with effect from 1 August 2009.- ENDS -Contact Information for Media:
Allan Virtanen
TAQA Media Relations, Abu DhabiTel +971 2 691 4894; Mob +971 56 685 2717
Allan.Virtanen@taqa.comAbout TAQAEstablished in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA’s power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA’s oil and gas business includes exploration and production, underground gas storage and pipeline transportation.Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation. TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development. For more information about TAQA visit: www.taqa.com or Twitter: @TAQAGLOBAL