Abu Dhabi National Energy Company (Taqa), the energy company majority owned by the Abu Dhabi Government and listed on the Abu Dhabi Securities Exchange, today announced that it is proposing a 10 per cent dividend on the back of a 460 per cent rise in net profits for 2010.
Taqa’s net profits rose to over Dh1 billion in 2010 compared with Dh182m in 2009. “As a result of this positive performance and given its confidence in Taqa’s position, the Board of Directors is proposing a dividend of Dh0.10 per share, subject to approval at the annual general meeting on April 19, 2011,” Taqa said in a statement today.
“2010 was an excellent year for TAQA – not only did we record strong financial and operational performance, but we also made significant headway in realigning the business to a more focussed strategy which targets long-term value,” said HE Abdulla Saif Al-Nuaimi, CEO and Managing Director of Taqa.
The company attributed its performance to the “positive commodity pricing environment combined with increased power production,” which it said was responsible for a 27 per cent year-on-year increase in revenues.
“We have added high-quality, earnings-accretive assets to our global footprint over the course of the year. Alongside these additions, we have conducted a strategic review of our international portfolio and have identified and prioritised the best opportunities for value creation. Furthermore, we have taken steps to improve our organisational structure by strengthening our headquarters in Abu Dhabi. The net result is an organisation that offers real organic growth potential,” Al-Nuaimi added.
“The continued support of the Emirate of Abu Dhabi, our pipeline of organic projects and a strong financial position fill me with confidence for 2011 and beyond,” he said.
At the same time, Taqa’s “cost of sales benefitted by Dh416m from the reversal of a previous oil and gas asset impairment resulting from a successful oil and gas drilling programme in North America,” the statement said.
“Taqa’s operational performance is evident in our financial results for the year.
Overall, oil and gas production finished the year at the high end of our original guidance, while revenues were simultaneously boosted by better oil and gas pricing. The consistent reliability of our high-performing power and water facilities has once again provided a stable backbone to Taqa’s overall results,” said Carl Sheldon, General Manager of Taqa.
“Combined with discipline in operational expenditures and the success of our drilling programs in North America and the UK North Sea, our operational efficiency has enabled us to deliver strong EBITDA and net profit,” he added.
Taqa’s net profits reflected “improved operational performance, reversal of the 2009 impairment provision, liquidated damages received from the delay in commissioning the Fujairah 2 plant and investment income from Sohar Aluminium,” the company said in the statement.