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TAQA reports net profit of AED 431 million and AED 3.7 billion debt reduction in first nine months of 2018 8 Nov 2018
Abu Dhabi National Energy Company PJSC (TAQA), a leading global energy company with operations in 11 countries, has reported a net income of AED 431 million for the first nine months of 2018. Growth has been driven by higher global oil prices, greater efficiency at the company’s power assets.

8th November 2018
ABU DHABI, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA), a leading global energy company with operations in 11 countries, has reported a net income of AED 431 million for the first nine months of 2018. Growth has been driven by higher global oil prices, greater efficiency at the company’s power assets.

In the first nine months of 2018, TAQA recorded an 8 percent year-on-year rise in revenues to AED 13.5 billion, while EBITDA increased by 9 percent to AED 7.4 billion.

TAQA’s oil and gas business is benefiting from higher oil and liquids prices, while its power and water business has also seen improved performance in the last year, mainly due to increased efficiency in TAQA’s global assets.

Commenting on the results, H.E. Saeed Mubarak Al Hajeri, the Chairman, said: “TAQA has achieved a very strong financial turnaround in the last year, which is the result of three years of hard work to strengthen our business to withstand the most volatile of business cycles. The company is now well positioned to implement our strategy for growth, which will combine attaining optimal returns from our oil and gas business, while maximising efficiency at current power and water assets and pursuing new opportunities in the utilities sector."

Saeed Hamad Al Dhaheri, Acting COO at TAQA added: “TAQA is fully focused on creating value for all our stakeholders. We are strengthening our balance sheet, by continuing to reduce debt, and have reduced our financing costs. At the same time, we are investing in the business, with our target for capital expenditure this year at AED 2 billion, funded completely by the company’s cash flow from operations. Our aim is to ensure that our assets in both the oil and gas business, and the power and water business continue to experience improving operational and financial performance in the coming years.”

TAQA’s power and water business continued to deliver a strong performance, with revenues stable at AED8.7 billion and EBITDA (earnings before interest, tax, depreciation and amortization) at AED5.2 billion. The business generated 69.36 GWh of power globally in the nine-month period, with technical availability standing at 94.3 percent.

The oil and gas business produced AED4.8 billion of revenue, and EBITDA of AED 2 billion. Operating netbacks per barrel increased in Europe driven by higher oil prices, while operations in North America continued to be affected by the low gas price environment in Canada.

This year, TAQA has continued to strengthen its balance sheet. The company has reduced its debt by AED 3.7 billion since the beginning of the year, which led to a reduction of AED 231 million in cash interest paid.

In the first nine months of 2018, free cash flow increased 1 percent year on year to reach AED 5.6 billion, mainly due to an increase in cash flow from operations partially offset by higher capital expenditure.

Total liquidity remains strong at AED 13.2 billion, including AED 3.0 billion in cash and cash equivalents and AED 10.2 billion of undrawn credit facilities.

Financial highlights for the periods ending 30 September 2018:

Net income of AED 431 million in first nine months of 2018. The improved performance was driven largely by higher oil and liquids prices as well as mark-to-market gains at TAQA’s U.S. power assets.

  • Revenues for the first nine months of 2018 increased 8% year on year to AED 13.5 billion.
  • EBITDA for the first nine months of 2018 increased 9% year on year to AED 7.4 billion
  • Free cash flow in the nine-month period increased 1% year on year to reach AED 5.6 billion, mainly due to an increase in cash flow from operations partially offset by higher capital expenditures.
  • TAQA continued to achieve strong liquidity at AED 13.2 billion, including AED 3.0 billion in cash and cash equivalents, and AED 10.2 billion of undrawn credit facilities.
  • Across the nine-month period, the Group has reduced its total debt by AED 3.7 billion and has witnessed a reduction in interest paid of AED 231 million compared to the same period of last year.

Operational Highlights:

Power & Water

  • Technical Availability for the UAE domestic assets improved to 94.4% in the first nine months of 2018, compared to 92.9% a year earlier. Additionally, international operations’ availability improved substantially to 93.8% from 88.1% a year earlier, mostly driven by better performance in Africa.
  • UAE power generation was 48, 989 GWh during the period, compared to 49,899 GWh generated in the first nine months of 2017, while internationally, power generation reached 20,375 GWh, compared with 19,960 a year earlier.

Oil & Gas

  • The Group’s average daily production for the first nine months of 2018 declined slightly to 122,000 boed.
  • Revenues from oil and gas business during the nine-month period reached AED 4.8 billion, compared to AED 4.1 billion a year earlier. EBITDA for the business reached AED 2.0 billion compared to AED 1.7 billion last year.

- ENDS -

TAQA media relations:
Sara Al Blooshi
Tel: +971 2 691 4940
Media.HQ@taqaglobal.com

TAQA reports first half net profit of AED 278 million, an increase of 148%, and reduced debt by AED 1.6 billion 9 Aug 2018
Abu Dhabi National Energy Company PJSC (TAQA), a leading global energy company with operations in 11 countries, has reported a net profit of AED 278 million for the first half of 2018, a rise of 148 percent from a year earlier.

9 August 2018
ABU DHABI, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA), a leading global energy company with operations in 11 countries, has reported a net profit of AED 278 million for the first half of 2018, a rise of 148 percent from a year earlier.

TAQA’s oil and gas business is benefiting from higher commodity prices, while its power and water business has also seen improved performance in the last year. The company has also reduced finance costs by reducing debt and successfully issuing a $1.75 billion bond on favourable terms.

In the first half of 2018, TAQA recorded a 3 percent year-on-year rise in revenues to AED 8.6 billion, while EBITDA increased by 2 percent to AED 4.8 billion.  

The company reduced its total debt by AED 1.6 billion during the first half, and the cash interest paid on its debt decreased by AED 157 million in the first half, compared to a year earlier.

Commenting on the results, Saeed Mubarak Al Hajeri, the Chairman, said: “TAQA’s performance has continued to improve this year due to prudent financial management and major achievements by our teams in enhancing operational efficiencies across both the oil and gas business, and the power and water business. The company is well positioned for growth, and we intend to deploy our deep international expertise on new initiatives, with a focus on power, where we expect strong demand in the coming years, especially in the Middle East and North Africa region.

“The two-year transformation programme has concluded and we are making steady progress as a business, as witnessed with the increases we’re seeing on net income and the efforts made on debt reduction.”

Saeed Hamad Al Dhaheri, Acting COO at TAQA added: “The sustainable efficiencies that we have driven through the business have allowed our operations in Europe to benefit fully from the higher oil price environment, while we are also delivering healthy returns from our power and water business. The company’s strategy is to continue to optimize our assets. That means deploying our expertise to extend the life of our oil and gas assets in Europe, and harnessing unconventional technologies and allocating greater capital to the production of liquids in North America.”

TAQA’s power and water business, which includes assets in the UAE, Oman, India, Morocco, Ghana and the United States, continues to deliver steady income. The company has enhanced efficiency across its operations. In particular, the international operations have improved substantially from 85.2% in the first six months of 2017 compared to the current 93.4% in 2018, mostly driven by the performance of the plant in Ghana. This reliability of power supply has had a major positive impact on local communities and businesses.

The oil and gas business in Europe is benefiting from higher oil prices which has more than offset the natural decline in production, and TAQA continues work to extend the lifespan of its assets. The company has successfully carried out its “Eider Bypass Project” to keep key platforms in operation and optimise cash flows.

This year, TAQA has continued to strengthen its balance sheet. The company’s completion of a $1.75 billion dual-tranche bond issue in April, which was 4.7 times subscribed, was key to reducing long-term financing costs.

During the first half, the company generated free cash flow of AED 3.4 billion.  Total liquidity remains strong at AED 14.6 billion, including AED 4.0 billion in cash and cash equivalents and AED 10.6 billion of undrawn credit facilities.

Financial highlights for the periods ending 30 June:

 

Three Months Ended

 

Six Months Ended

 

30-Jun

30-Jun

%

 

30-Jun

30-Jun

%

(AED millions)

2018

2017

Change

 

2018

2017

Change

Total Revenues

4,264

4,211

1%

 

8,601

8,352

3%

EBITDA1

2,418

2,249

8%

 

4,758

4,681

2%

Net Profit (Equity holders)

168

35

380%

 

278

112

148%

Free cash flows2

1,795

2,067

-13%

 

3,373

4,098

-18%

               

1) Earnings before interest, taxes, depreciation and amortization defined as IFRS earnings before income tax, excluding all finance charges and depreciation, depletion and amortization.

 

2) Free cash flow is defined as operating cash flows less investing cash flows as per the IFRS cash flow statement.

 

  • Following TAQA’s return to full year profitability in 2017, the Group has continued to generate positive net income with AED 168 million being recorded in Q2 2018, compared to AED 35 million for the same period last year. The results are mainly due to improved stability in oil and liquids prices.
  • Net Income for H1 2018 was AED 278 million versus AED 112 million in the first half of 2017, a 148% increase, this has been a result of the items noted above for the Q2 discrete quarter results.
  • Quarterly Revenues of AED 4.3 billion demonstrate benefits of higher oil prices in the quarter more than offsetting declines in hydrocarbon production as well as the lower North American gas price environment relative to Q2 2017.
  • H1 2018 revenues topped AED 8.6 billion, a marginal improvement versus H1 2017 AED 8.4 billion. Again, this increase has been driven by the higher oil and liquids prices which has more than offset the lower volumes as well as increased fuel revenue in Morocco.
  • H1 2018 consolidated EBITDA was AED 4.8 billion, a marginal improvement versus H1 2017 (AED 4.7 billion).
  • Lower free cash flow in Q2 2018 of AED 1.8 billion relative to the same period in 2017 (AED 2.1 billion) is in line with increased capital investment spending which has brought on new production to offset natural decline.
  • Total liquidity remains strong at AED 14.6 billion including AED 4.0 billion in cash and cash equivalents, and AED 10.6 billion of undrawn credit facilities. 
  • Across the six month period the Group have been able to reduce its total debt by AED 1.6 billion and have witnessed a reduction in interest paid of AED 157 million compared to the same period last year.

Operational Highlights:

Power & Water

  • Technical Availability across the fleet was 92.5% for the First Half (H1) of 2018, compared to 90.0% for the same period of 2017. UAE asset improved from 91% in H1 2017, to 92.3% in 2018. Additionally, International operations’ availability improved substantially from 85.2% in the first six months of 2017, compared to the current 93.4% in 2018, mostly driven by better performances in Ghana.
  • Global power generation was 42,662 GWh in H1 2018, compared to 42,030 GWh generated globally in H1 2017. International operations showed a decisive improvement in both availability and generation versus the first half of 2017, while UAE power generation remains relatively stable with 29,265 GWh in H1 2018, compared to 30,091 GWh in H1 2017. UAE Water desalination was 117,642 million imperial gallons (MIG) in H1 2018, versus 120,643 MIG for the same period of 2017, continuing to supply the majority of Abu Dhabi’s requirements.

Oil & Gas

  • The Group’s average daily production for the second quarter of 2018 was 117,389 boe/d versus 129,993 boe/d in Q2 2017. Year-to-date the average production is 120,600 boe/d compared to 131,086 boe/d H1 2017. TAQA’s increased capital investment spending in Q4 2017 and Q1 2018 has brought on new production to offset natural decline. Production in North America remained broadly consistent compared to the same period last year, however, the impacts of natural decline and unplanned outages in the North Sea has resulted in lower production from our European operations. Partially offsetting this lower production was our volumes from the Atrush block in Kurdistan which only commenced operations in July 2017.

- ENDS -

TAQA media relations:
Sara Al Blooshi
Tel: +971 2 691 4940
Media.HQ@taqaglobal.com

TAQA reports 42% rise in net profits for its 2018 first quarter results 10 May 2018
ABU DHABI, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA), a leading global energy company headquartered in Abu Dhabi with operations in 11 countries, today announced its preliminary financial results and operational highlights for the full financial year, ending 31st of March 2018.

10 May 2018
ABU DHABI, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA), a leading global energy company headquartered in Abu Dhabi with operations in 11 countries, today announced its preliminary financial results and operational highlights for the full financial year, ending 31st of March 2018.

Commenting on the results, Saeed Mubarak Al Hajeri, the Chairman, said: “Having recorded a net profit of AED 160 million in 2017, TAQA’s performance continues to improve steadily, underpinned by our focus on driving sustainable efficiencies through the business. The company is continually strengthening its financial position, as it successfully raised US$1.75 billion last month through a bond issue that was greeted with strong demand from global investors. TAQA is concentrating on optimizing its assets in the oil and gas business, while studying growth opportunities in the power and water sector.”

Saeed Hamad Al Dhaheri, Acting COO at TAQA added: “I am pleased to report that 2018 has started well for TAQA, as our oil and gas business continues to feel the benefit of the sustained cost efficiencies, and higher hydrocarbon prices. Our international power and water business remains robust, and we look forward to leveraging our expertise in this sector, as we seek further growth opportunities.”

Financial highlights:

  • Total revenues of AED 4.3 billion, an increase of 5% on the first three months of 2018 (2017: AED 4.1 billion) primarily driven by higher commodity prices that benefitted the oil and gas business, and improvement in the power and water business.
  • EBITDA of AED 2.3 billion, down 4% on 2017 (2017: AED 2.4 billion) affected by adverse movements in FX, stock, increased tariff and trading expenses, partially offset by higher revenues.
  • Net income of AED 110 million, compared to a net income of AED 77 million in Q1 2017, which represents an increase of 42%.
  • Free cash flow of AED 1.6 billion, a decrease of 22% on 2017 (2017: AED 2.0 billion), principally due to lower EBITDA and unfavourable working capital movement.
  • Total liquidity remains strong at AED 12.6 billion, including AED 3.6 billion in cash and cash equivalents and AED 8.9 billion of undrawn credit facilities. Total debt was reduced by AED 790 million during the period, while total interest paid was reduced by AED 58 million compared to same period 2017.

Operational Highlights: Power & Water

  • Global power and water business produced 18,773 GWh compared to GWh 18,516 in Q1 2017. Global technical availability in Q1 2018 was at 87.4% compared to 84.3% in Q1 2017.
  • UAE operations produced 12,157 GWh of electricity and 56,273 MIG of desalinated water, meeting the majority of Abu Dhabi’s water and electricity requirements.

Operational Highlights: Oil & Gas

  • Production volumes of 123.8 barrels of equivalent oil per day (boe/d), down 6% from Q1 2017 (2017: 132,200 boe/d), impacted by natural decline and North Sea platform maintenance.
  • Operating margins per barrel increased, mainly driven by higher realised prices.

- ENDS -

TAQA media relations:
Sara Al Blooshi
Tel: +971 2 691 4940
Media.HQ@taqaglobal.com

TAQA reports full year net profit of AED 160 million for 2017 22 Mar 2018
ABU DHABI, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA), a leading global energy company headquartered in Abu Dhabi with operations in 11 countries, today reported its fully audited financial results and operational highlights for the financial year, ending 31st of December 2017.

22 March 2018

ABU DHABI, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA), a leading global energy company headquartered in Abu Dhabi with operations in 11 countries, today reported its fully audited financial results and operational highlights for the financial year, ending 31st of December 2017.  

TAQA reported a net profit attributable to shareholders of AED 160 million for the 2017 financial year, as the oil and gas business benefitted from higher hydrocarbon prices and sustained cost efficiencies, and the power and water business continued to deliver strong income.

TAQA’s total revenues stood at AED 16.7 billion in 2017, an increase of 4% on 2016. Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 7% to AED 9.1 billion, with sustained cash cost savings contributing to the improved EBITDA margin.

The company continues to benefit from the two-year transformation programme, which finished in 2016, having delivered an AED 13.2 billion reduction in costs, including capital and operating expenditure. In 2017, operating expenditure in the oil and gas business was approximately 40% lower than 2014 levels.

In 2017, TAQA generated free cash flow of AED 7.4 billion, which was 1% higher than in 2016.  This increase was primarily a result of the aforementioned higher EBITDA which was utilized to support increased levels of investment.

 

H.E. Saeed Mubarak Al-Hajeri, Chairman of the Board of Directors, said:

“Having completed a two-year transformation programme in 2016, TAQA is now well positioned to contribute further to the economic diversification strategy being pursued by the Abu Dhabi government – our main shareholder. Our base in the UAE’s capital has given us a stable economic and financial environment, where we benefit from our long experience and robust capabilities in the power and water sector as we supply the majority of Abu Dhabi’s power and water needs, while our regional business networks are critical to sourcing attractive opportunities in the future.

Across the region, policymakers are encouraging greater investment in vital infrastructure. As TAQA charts a new strategic path in the coming years, it will be able to draw experience in building a global business, and the technical expertise that runs through all our operations.”

 

Full year 2017 financial highlights:

  • 2017 total revenues of AED 16.7 billion, an increase of 4% on 2016 (2016: AED 16.1 billion) primarily driven by higher commodity prices that benefitted the oil and gas business, while the power and water business remained steady.
  • 2017 EBITDA of AED 9.1 billion, up 7% on 2016 (2016: AED 8.5 billion) supported by higher revenues and sustained cash cost savings. 
  • TAQA turned to net profit in 2017. Profit attributable to equity holders of AED 160 million.  
  • 2017 free cash flow of AED 7.4 billion, which was 1% higher than in 2016 (2016: AED 7.3 billion) .  This increase was primarily a result of the aforementioned higher EBITDA which was utilized to support increased levels of investment.
  • Total liquidity remains strong at AED 15.4 billion, including AED 4.2 billion in cash and cash equivalents and AED 11.2 billion of undrawn credit facilities.

 

Operational Highlights: Power & Water

  • Global power and water business delivered a robust operating performance, with 89,846 GWh of gross power generation and 249,469 MIG of gross water desalination. This places TAQA in the global industry’s top quartile producers. Global power technical availability decreased slightly to 92.1% in 2017, from 93.6% in 2016, due partly to unplanned outages at a power plant in Ghana.
  • UAE operations produced 64,064 GWh of electricity and 249,469 MIG of desalinated water, meeting the majority of Abu Dhabi’s water and electricity requirements.

 

Operational Highlights: Oil & Gas

  • Production volumes of 126,200 barrels of oil equivalent per day (boe/d) in 2017, down by 8% from 2016 (137,300 boe/d), impacted by natural decline, prior capital expenditure reductions and planned North Sea platform maintenance.
  • Operating margins per barrel increased, driven by higher realised prices and sustained cost efficiencies.
  • Production at the Atrush Block in the Kurdistan Region of Iraq began in July 2017 and TAQA received its first payments from the Kurdistan Regional Government.

Saeed Hamad Al Dhaheri, acting Chief Operating Officer, said:

“TAQA has come through an extremely tough market environment, with the company’s financial results reflecting the company’s resilience. Turning to a net profit in 2017 is therefore an impressive and notable achievement. Higher hydrocarbon prices, together with sustained cost efficiencies, benefited our oil and gas business, while the power and water business continued to deliver a robust operational and financial performance. The company is focused on optimizing returns from all of its global assets, while playing a key role in Abu Dhabi’s economic development by being a major player in the regional power and water sector.”

 

 

Mohammed Al Ahbabi, acting Chief Financial Officer, said:

“Since oil prices fell sharply in 2014, TAQA has worked hard to transform the company. We have already seen positive operational and financial results of our work, with the transformation programme resulting in the reduction of costs by AED 13.2 billion. TAQA has been able to continue to record strong cash flow generation, and improved profitability, with total revenues increasing 4 percent in 2017 to AED 16.7 billion, and the company turning to a net profit.  We have been working hard to lower TAQA’s finance costs, and we are gradually reducing its debt levels, which will have a positive impact on our financial performance in the coming years.”

 

- ENDS -

 

TAQA media relations:  
Sara Al Blooshi
Tel: +971 2 691 4940
Media.HQ@taqaglobal.com

TAQA announces preliminary 2017 full-year financial results 8 Feb 2018
ABU DHABI, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA), a leading global energy company headquartered in Abu Dhabi with operations in 11 countries, today announced its preliminary financial results and operational highlights for the full financial year, ending 31st of December 2017.

8 February 2018
 

ABU DHABI, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA), a leading global energy company headquartered in Abu Dhabi with operations in 11 countries, today announced its preliminary financial results and operational highlights for the full financial year, ending 31st of December 2017.  

 

Commenting on the results, Saeed Hamad Al Dhaheri, acting Chief Operating Officer, said:  “TAQA has come through an extremely tough market environment, with the company’s preliminary financial results reflecting the company’s resilience. Turning to a net profit in 2017 is therefore an impressive and notable achievement. Higher hydrocarbon prices, together with sustained cost efficiencies, benefited our oil and gas business, while the power and water business continued to deliver a robust operational and financial performance. The company is focused on optimizing returns from all of its global assets, while playing a key role in Abu Dhabi’s economic development by being a major player in the regional utilities sector.” 

 

Full year 2017 financial highlights:

  • 2017 total revenues of AED 16.7 billion, an increase of 3% on 2016 (2016: AED 16.1 billion) primarily driven by higher commodity prices that benefitted the oil and gas business, while the power and water business remained steady.
  • 2017 EBITDA of AED 9.5 billion, up 11% on 2016 (2016: AED 8.5 billion) supported by higher revenues and sustained cash cost savings. 
  • TAQA turned to net profit in 2017. Profit attributable to equity holders of AED 171 million compared to a 2016 loss of AED 19.0 billion, because of the exceptional impairment charge of AED 22.0 billion in the previous year.
  • 2017 free cash flow of AED 7.2 billion, a decrease of 1% on 2016 (2016: AED 7.3 billion), principally due to increased capital investment to sustain the performance of the Group’s existing portfolio of assets.
  • Total liquidity remains strong at AED 15.4 billion, including AED 4.2 billion in cash and cash equivalents and AED 11.2 billion of undrawn credit facilities.

 

Operational Highlights: Power & Water

  • Global power and water business delivered a robust operating performance, with 89,846 GWh of gross power generation and 249,469 MIG of gross water desalination. This places TAQA in the global industry’s top quartile producers. Global power technical availability decreased slightly to 92.1% in 2017, from 93.6% in 2016, due partly to unplanned outages at a power plant in Ghana and at the Sohar Aluminium Smelter.
  • UAE operations produced 64,064 GWh of electricity and 249,469 MIG of desalinated water, meeting the majority of Abu Dhabi’s water and electricity requirements.

 

Operational Highlights: Oil & Gas

  • Production volumes of 126,200 barrels of equivalent oil per day (boe/d) in 2017, down by 8% from 2016 (137,300 boe/d), impacted by natural decline, prior capital expenditure reductions and planned North Sea platform maintenance.
  • Operating margins per barrel increased, driven by higher realised prices and sustained cost efficiency.
  • Production at the Atrush Block in the Kurdistan Region of Iraq began in July 2017 and TAQA received its first payments from the Kurdistan Regional Government.

 

- ENDS -

 

 

 

 

TAQA media relations:  
Sara Al Blooshi
Tel: +971 2 691 4940
Media.HQ@taqaglobal.com