Abu Dhabi – Mubasher: Abu Dhabi National Energy (Taqa) reported AED 16 million in losses during the third quarter (Q3) of the year, against profits of AED 153 million for the same period last year, as shown by the company’s interim condensed consolidated financial statements.
In the first nine months of 2019, TAQA’s net profits reached AED 198 million, declining by 54% year-on-year (YoY), as consolidated net income fell 21% to AED 925 million, while revenues edged lower by 3% to AED 13.1 billion.
Earnings before interest, tax, depreciation, and amortization (EBITDA) amounted to AED 7 billion, decreasing by 5% YoY, due to lower revenue and reduced income from sister companies.
TAQA’s liquidity remained solid at AED 11.2 billion, with the group’s debt reaching AED 63.3 billion.
Consolidated net profit was negatively impacted by unfavourable mark-to-market movements generated by an energy price reduction and the reimplementation of the regional greenhouse gas initiative in New Jersey which impacted Red Oak, the Group’s US-based power asset, the company explained in a statement.
However, this was offset by positive movements in foreign exchange gains which were realized as a result of a weaker Euro and a reduction in current tax charges due to the decrease in taxable income within the oil and gas segment.
“TAQA’s results for the first nine months of 2019 come amid headwinds for the hydrocarbon industry and continue to be bolstered by strong and stable performance in our Power and Water business. In addition, the Group continues to reduce its debt position while maintaining strong liquidity,” Chairman of TAQA, Saeed Mubarak Al Hajeri, commented.
“Our recent 30-year bond issuance and the overwhelming demand seen from investors is a testament to the stability of our overall business. Moving forward, we remain positive about greater opportunities to grow our power generation and water desalination business to achieve sustained growth,” he added.
Meanwhile, TAQA CEO, Saeed Al Dhaheri said that “In the first nine months of the year, TAQA had a strong performance by the UAE fleet resulting in an increased availability to help meet power and water demands. Our oil and gas business was boosted by our increased production at KRI’s Atrush, which currently stands at 45,000 barrels of oil per day, as well as increased revenues from our gas storage facilities in the Netherlands.”
In a separate statement to Abu Dhabi Securities Exchange (ADX), Taqa showed that accumulated losses reached AED 2.453 billion by the end of 30 September, compared with AED 2.651 billion by the end of 2018, this reducing the accumulated losses to capital ratio to 40.44%.
