Abu Dhabi’s TAQA reports 158% profit rise on higher oil, gas revenues

State-owned oil explorer and power supplier says it made $74.6m in first three months of 2014

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Abu Dhabi National Energy Company (TAQA), the state-owned oil explorer and power supplier, posted a 158-percent jump in first-quarter net profit on Wednesday as revenue from its oil and gas business soared.

TAQA, 75 percent owned by the government of Abu Dhabi, made a profit of 274 million dirhams ($74.6 million) in the three months to March 31, up from 106 million dirhams a year earlier, it said in a statement.

TAQA’s quarterly oil and gas revenue was 3.5 billion dirhams, up from 2.2 billion dirhams in the prior-year period. This helped push overall revenue to 7.2 billion dirhams, up 33 percent year-on-year.

“Our first quarter result was helped by the restoration of North Sea oil production at Cormorant Alpha and higher natural gas prices in North America, but we also demonstrated our ability to increase capital efficiency and control costs,” Stephen Kersley, chief financial officer of TAQA, said in the statement.

“We are well positioned with ample liquidity, and look forward to driving continued improvement in earnings and coverage ratios.”

TAQA has investments around the world, including North Sea oil production facilities and power plants in India, Ghana and Morocco.

In April, Edward LaFehr took over as chief operating officer, heading the firm after CEO Carl Sheldon stepped down after six years in February.

Late last month, TAQA finalized a ten-year $750 million bond, the proceeds of which would be partly used to repay a $1.2 billion bond due to mature in September 2014.

TAQA also signed a $200 million yen-denominated loan to partly fund repayment of the September bond.

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