By Daniel Canty
Annual profits soar 107% on the back of massive global expansion.
Abu Dhabi National Energy Company, known as TAQA, has confirmed record preliminary results for 2007. The company's profits grew by 107% to reach US$272 million last year. Preliminary revenues grew by 65% to $2.1 billion, up from $1.3 billion in 2006. The company also grew its total assets by 30% to reach $18.5 billion in 2007.
"The last year has seen TAQA transform itself into a global energy business," said Peter Barker-Homek, chief executive officer of TAQA. "The dramatic reshaping of our business to encompass all aspects of the energy value chain, from upstream to mid and downstream, has created new opportunities for TAQA around the world," he added.
Last year TAQA made strategic acquisitions that enhanced its shift from local company to global operator, and now has activities in nine countries with 2300 employees.
TAQA kicked off its breakthrough year with a series of deals focussed at the heart of the North Sea oil basin. In January 2007 a declaration of intent to acquire Talisman's Brae North Sea assets was signed, with the purchase successfully completed late in the year. TAQA also finalised its acquisition of BP Netherland's gas exploration and production (E&P) assets in Q1 2007.
CMS Generation, a subsidiary of the US integrated energy firm CMS Energy, was next on the acquisition list, closely followed by the purchase of ownership interests held by ABB in Morocco and India. The deals combined to strengthen TAQA's portfolio of assets in Morocco, Saudi Arabia, Ghana, UAE and the subcontinent.
In August 2007 TAQA's attentions turned north and westward to the giant Canadian sedimentary basin. Canada's proven oil reserves were estimated at 179.2 billion barrels as of 2007, placing it second only to Saudi Arabia. The wholesale acquisition of Northrock Resources, an oil and gas exploration company, secured TAQA's presence in Canadian operations for a total purchase price of $2 billion. Northrock Resources has been subsequently renamed as TAQA North Limited.
Also that month, TAQA announced a $540 million acquisition of Pioneer Canada, another oil and gas exploration and production company with operations in the western Canadian sedimentary basin. The transaction was completed in November 2007.
TAQA completed its Canadian foray with the $5 billion purchase of PrimeWest Energy Trust, a Calgary-based conventional oil and gas firm in a deal completed last month.
"By diversifying our operations into several new markets during the course of the year we have created an enviable global footprint, offering an attractive spread of market and operational risk," said Barker-Homek.
TAQA ended the year with a return to the regional markets, signing a letter of intent with Kuwait Energy Company (KEC) in respect of opportunities in the oil and gas sector in Egypt, Oman, Yemen, Syria, Iraq, Kazakhstan and Iran.
"While the pace of development has been dramatic, we remain focused on swiftly integrating these assets to ensure they reach their full potential as part of TAQA," concluded Barker-Homek.