UAE's TAQA reports 14% fall in 2012 net profit

Abu Dhabi-owned energy firm posts full-year profit of US$174m on lower gas prices
Taqa CEO, Carl Sheldon.
By Massoud A. Derhally
Wed 06 Feb 2013 10:33 AM

Abu Dhabi National Energy Company, known as TAQA, said full year 2012 profit declined about 14 percent because of lower gas prices in the US and a one-off tax charge.

The state-controlled power and oil company said full-year net profit declined to AED640m (US$174m) last year from AED744m in 2011.

The decrease in net profit was a result of "a one-off tax charge restricting tax relief on decommission expenditures, lower North American gas prices, lower margin on back up fuel at the domestic subsidiaries, lower income from Sohar due to lower aluminium prices and higher finance costs from new bond issues against repayment of maturing bonds,'' the company said  in a regulatory filing to the Abu Dhabi Securities Exchange.

Total assets increased 6.7 percent to AED122.4bn last year from AED114.7bn in 2011, due to the expansion of the Jorf Lasfar project in Morocco and the Bergermeer storage facility project for natural gas in the Netherlands, the company said. Assets also increased on the back of advance payments towards the acquisition of BP's interests in oil and gas assets in central North Sea and the acquisition of 53.2 percent interest in the Atrush block in the Kurdistan region of Iraq.  

The company, 75 percent owned by the Abu Dhabi government, "is better positioned than ever to capitalise on the growth opportunities inherent in our businesses", CEO Carl Sheldon said.

"Our extensive experience as an operator of complex energy assets, coupled with our strong financial position, gives us access to unique opportunities whilst continuing to optimise our existing activities."

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