Taqa swings to profit after record loss in 2016

09/02/2018 05:07 AST

Abu Dhabi National Energy Company (Taqa) has registered a Dh171 million ($46.5 million) net profit in 2017 compared to a Dh19 billion ($5.2 billion) loss the previous year, primarily on the back of higher commodity prices that benefitted the oil and gas business, while the power and water business remained steady.

Announcing the preliminary financial results and operational highlights for the full financial year, ending December 31, 2017, Taqa said its total revenues for 2017 surged three per cent to hit Dh16.7 billion over last year.

The Abu Dhabi energy firm posted a 2017 ebitda of Dh9.5 billion, up 11 per cent on 2016 (Dh8.5 billion) supported by higher revenues and sustained cash cost savings.

Profit attributable to equity holders of Dh171 million compared to a 2016 loss of Dh19 billion, because of the exceptional impairment charge of Dh22 billion in the previous year.

According to Taqa, the total liquidity remains strong at Dh15.4 billion, including Dh4.2 billion in cash and cash equivalents and Dh11.2 billion of undrawn credit facilities.

Commenting on the results, Saeed Hamad Al Dhaheri, the 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," remarked Al Dhaheri.

"The company is focused on optimising 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," he added.-

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