- 12 Aug 2014
TAQA reports profit of AED 513 million for H1 2014
TAQA achieved record oil and gas production, averaging 158,000 barrels of oil equivalent per day (boe/d) during the period, representing a 24% increase against the first half of 2013. This significant production growth, combined with operational efficiencies and higher North American gas prices, raised TAQA’s underlying revenues to AED 11.3 billion, up 29% year-on-year, and resulted in the company’s highest ever EBITDA of AED 7.9 billion, up 42% against H1 2013.As a result of the group strategy changes and reorganisation announced in May 2014, TAQA maintained existing operating expenditure levels while achieving higher production, despite an escalating cost environment. General and administrative (G&A) costs were reduced by 15% year-on-year.TAQA’s net profit was AED 513 million, up from a loss of AED 66 million in H1 2013, delivering earnings of 9 Fils per share.* Construction and backup fuel revenues have compensating expenses in cost of sales
All amounts in AED million unless otherwise statedOil & Gas
Following the integration of TAQA’s new Central North Sea assets, its UK operations produced a record average volume of 61,500 (boe/d) during the first half, increasing UK netbacks by 50% year-on-year.TAQA achieved stable production levels of 89,000 boe/d in North America despite lower capital expenditure (CAPEX). Netbacks increased by 27% due to stronger oil and gas prices and lower costs.Power & water
TAQA’s power and water production both grew 2% to 32,250 GWh and 122,955 million imperial gallons per day (MIGD) respectively. The company’s international power generation assets produced 6,692 GWh, up 13% year-on-year, boosted by the completion of the Jorf Lasfar expansion in Morocco. TAQA’s domestic power and water fleet produced 25,558 GWh, flat compared to H1 2013.Technical availability at the international fleet increased to 87.3% from 84.1%, despite an outage at the Takoradi 2 power station in Ghana. Availability at TAQA’s domestic power and water fleet slightly decreased from 90.3% to 89.9%, due to forced outages at the Fujairah F1 and F2 power and water stations.Growth projects
In April, TAQA started preliminary commercial operations at its Bergermeer gas storage facility in the Netherlands. When complete in 2015, Bergermeer will significantly contribute to the security of European energy supply.The TAQA-operated Atrush block in the Kurdistan region of Iraq is on schedule to start producing approximately 30,000 barrels of oil per day in 2015. In August TAQA temporarily suspended its operations at the Atrush Block as a result of recent developments around the Kurdistan Region of Iraq. TAQA continues to closely monitor the security situation with its Atrush partners and the Kurdistan Regional Government.In June, TAQA completed the expansion of the Jorf Lasfar power station in Morocco, increasing its capacity from 1,356 to 2,056 MW. The power station supplies more than 50% of the country’s electricity demand.The expansion of TAQA’s Takoradi 2 power station in Ghana is over 90% complete and will be inaugurated in Q4 2014.Following changes in group strategy, TAQA ended negotiations to invest in two hydroelectric plants in India and the Sulaymaniyah power station in the Kurdistan region of Iraq. The withdrawals will improve free cash flow, reduce debt leverage over time and deliver a stronger sustainable financial performance.TAQA estimates its capital expenditure for the full year 2014 to be USD 300 million lower compared to the full year 2013, totalling approximately USD 2 billion.Financing and liquidity
TAQA successfully refinanced its USD 1.2 billion bond in April, at attractive pricing. The company expects to pay 2016 maturities from improved operational cash flow and asset sales and does not intend to return to the bond market until 2017, at the earliest.At the end of the period, TAQA had available liquidity of USD 5 billion, including USD 1.1 billion of cash in hand. Comment
Edward LaFehr, Chief Operating Officer, said: “We have seen a great performance during the first half. Record oil and gas production and strong prices have driven our EBITDA to its highest levels. We are starting to see the results of our focused strategy bearing fruit, with safety and operational excellence at the core of everything we do. Greater efficiencies and cost control, combined with a conservative view on growth projects and acquisitions, will ensure we can deliver our commitment to reduce debt and improve financial performance.”- ENDS -For further information:Investor relations
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Allan.Virtanen@taqa.comAbout TAQATAQA, meaning energy in Arabic, is the brand name of Abu Dhabi National Energy Company PJSC. We are an international energy and water company listed in Abu Dhabi operating in 11 countries across four continents.
We strive to be safe and sustainable, and embrace the challenge of delivering affordable and reliable energy and water. We are proud to align our strategy with Abu Dhabi’s Economic Vision 2030, a roadmap for a sustainable economy with a focus on knowledge-based industry.
Our interests lie in conventional and alternative power generation, water desalination, oil and gas exploration and production, pipelines and gas storage. We operate in Canada, Ghana, India, Iraq, Morocco, the Netherlands, Oman, Saudi Arabia, the United Arab Emirates, the United Kingdom and the United States.