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29 March 2024

Taqa Q2 net beats estimates

Published
By Reuters

Abu Dhabi National Energy Co (Taqa) said on Wednesday its second-quarter net profit more than doubled helped by high oil prices and increased production in the UK, significantly beating analyst's forecasts. 

Taqa, which on Tuesday said its Dutch Bergermeer field will not be ready for use as planned in 2014, posted a net profit of Dh435 million ($118.5m) in the three months to June 30, compared with a net profit of Dh171m in the same period last year. 

Analysts forecast an average net profit of Dh249m, according to a Reuters poll.

Revenue from oil and gas rose 54 per cent to Dh3.1bn in the second quarter from Dh2bn a year earlier, Taqa said in a bourse statement. Total revenue for second quarter was Dh7.1bn, up 38 per cent. 

"During the quarter, steady production in our oil and gas business has enabled Taqa to capture the benefits of a higher commodity price environment," Stephen Kersley, Taqa's chief financial officer said in the statement.

Taqa shares rose seven per cent in early trade on the Abu Dhabi stock exchange. The stock has fallen 20 per cent year-to-date. 

Prices for Brent crude increased to an average of $116.99 a barrel during the second-quarter versus $79.41 per barrel for the same period last year, Taqa said. WTI oil price averaged $102.34 a barrel versus $78.05 a barrel in Q2 2010.

The company, owned 75-per cent by the Abu Dhabi government, also runs power plants in Morocco, Saudi Arabia, Ghana, India, the Caribbean and the US. 

Taqa's Dutch Bergermeer field, Europe's biggest gas storage project, will not be ready for use in 2014 as planned after a court ruled that work at the site must stop because of environmental fears, it said on Tuesday.

The company's Chief Executive Abdulla Saif al Nuaimi stepped down during the quarter, while Stephen Kersley replaced Doug Fraser as the new chief  financial officer in May.