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Thu 21 Oct 2010 12:26 AM

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Qatar Electricity Q3 net rises 20% to $100m

Company, partly owned by the Qatar government plans projects in Syria

Qatar Electricity Q3 net rises 20% to $100m
NET RISE: Qatar is using its natural gas reserves, to develop industries and raise its power generation capacity 2012. (Getty Images)

Qatar Electricity & Water Co, the third largest traded utility in the Middle East by revenue, posted a 20 percent rise in third quarter profit as new electric generation capacity boosted revenue.

Net income for the three months ended September 30 rose to $100 million from $83.5 million a year earlier, the company said in a statement on the Qatar Exchange today. Earnings per share for the quarter increased to 3.64 riyals from 3.04 riyals.

Essam Abd El Alim, an analyst at Cairo based Naeem Brokerage who forecasted a net income of $98.6 million for the quarter said: “The company performance is better than expected."

He added: “They are expanding, acquiring new stakes.”

Sales gained 27 percent to $259.3 million, the company said. The increase came after the company started the first phase of Ras Girtas in July, adding 1,833 megawatts of capacity to the Qatari grid.

The second phase is scheduled to start by April. The 2,000 megawatt Mesaieed power plant reached full output earlier this year.

The company, which is 43 percent government owned, was scheduled to complete the acquisition of a majority stake in Qatari power provider Ras Laffan Energy earlier this month, increasing its holding in the company to 80 percent from 25 percent, chief executive officer Fahad al Mohannadi said in Doha October 5.

The acquisition, El Alim said: “will reflect on the fourth-quarter of 2010.”

He added: “In 2011, Ras Girtas will be fully operational and this will affect their revenue next year.”

The company plans projects in Syria and unsuccessfully bid to construct a plant in Oman.

Qatar Electricity may partner with state controlled Qatar Petroleum and a local company to build a plant in India, Al Arab newspaper reported today.

Qatar is using its natural gas reserves, the third largest in the world, to develop industries and raise its power generation capacity to about 9,000 megawatts by 2012, according to Qatar National Bank data.

Qatar Electricity fell 0.5 percent to 114.8 riyals on the Qatar Exchange today, the fourth daily decline. The stock has risen 14 percent this year.