Taqa blames 'external factors' for 26% slump in net profit

The Abu Dhabi National Energy Company (Taqa) said Tuesday its provisional net profit declined 26 per cent on year in 2011 to Dh752 million. "The decline in total assets and net profit was partially due to a one-off impairment charge at Taqa North, following the annual revaluation of Taqa's portfolio," the company said in a statement. In addition, profits were affected by additional taxes on UK oil and gas producing companies which came into effect last March 24. Income tax expense for the UK was Dh1.588 billion higher in 2011, compared with 2010, said Taqa. However, Taqa recorded a strong top line performance with a 14 per cent increase in revenues due to higher oil prices, plus growth in its power and water portfolio. The total revenue generated by the company last year stood at Dh24.36 billion, compared to Dh21.40 billion in 2010. Taqa's basic earnings per share last year fell from Dh0.17 to Dh0.12 while its total assets shrank one per cent to Dh114.848 billion. "The net impairment charge of Dh528 million, or Dh0.08 per share, reflects an impairment of Dh706 million, offset by a deferred tax benefit of Dh178 million," Taqa said. Mohammad Mubaideen, Investment Relations Manager at Taqa, told Gulf News the "company's operations are doing fine and the reduction in net profit is mainly due to an accounting adjustment." "These results are only for market guidance. We will announce our fully audited numbers on the 14th of March, which would provide guidance on our capital expenditure, future projects, investments and production," Mubaideen added. Shares unchanged Taqa's stock on the Abu Dhabi Securities Exchange yesterday closed unchanged at Dh1.26. "Taqa's performance during 2011 is evidence of our operational maturity and our ability to identify new, exciting opportunities for growth. Across every aspect of our business we have continued to focus on driving these efficiencies while harnessing the opportunities our portfolio offers. An excellent example of this is the Falcon Field in the UK North Sea, which we identified and brought onstream within two years, a record for the region, adding new production to our oil and gas portfolio," said Carl Sheldon, the company's chief executive officer. He added: "While financial performance was ultimately dampened by external factors beyond our control, our vigorous focus on costs and our proven ability to exploit opportunities, combined with the steps we have already taken to secure our future growth and financing, position Taqa for a strong start to 2012." Taqa's activities include oil and gas, power generation and water desalination across five continents. With operations in the UK, the Netherlands and North America, the company's oil and gas business includes exploration and production, storage and pipelines. Taqa produces almost 137,000 barrels of oil equivalent per day. It's also one of the largest independent power producers in the world with power plants located in the UAE, Oman, Morocco, Saudi Arabia, Ghana, India and the US. Taqa is the majority owner of the facilities that provide 98 per cent of the water and electricity requirements in the emirate of Abu Dhabi.