By Massoud A. Derhally
State-controlled power company sees revenue decline on back of weak gas prices in North America
Abu Dhabi National Energy Company, the state-controlled power and oil producer known as TAQA, said second quarter net profit increased about 2.8 percent as weak gas prices in North America caused revenues to decline 14.5 percent.
The company said second quarter profit increased to AED447m (US$121.7m) compared with AED435m in the year-earlier period, according to a company regulatory filing with the Abu Dhabi Securities Exchange.
"It is clear that the first half of 2012 has been a challenging period for the global economy, a fact that can be clearly seen in falling global commodity prices," TAQA CEO Carl Sheldon said in the statement. "North American gas prices have continued to weaken with Henry Hub prices reaching a ten-year low in February 2012."
Total revenues fell to AED6.04bn in the second quarter from AED7.06bn in the same period a year ago. Oil and gas revenue fell 4.8 percent in the same period to AED 2.98bn from AED 3.11bn.
"Prices have since recovered somewhat, but overall gas price weakness has had a significant impact on our North American performance," Sheldon said.
TAQA is 75 percent owned by the government of Abu Dhabi.