With a 15 per cent year-on-year increase in total revenues and an 11 per cent boost in pre-tax profits, Abu Dhabi’s National Energy Company has posted a strong start to 2011.
Citing improved commodity prices, higher oil and gas production and increased power and water revenues due to the commissioning of the Fujairah 2 power and desalination plant, TAQA’s oil and gas revenues are also up by 14 per cent to $817 million, driven by the increase in crude oil prices.
A 2 per cent increase in average global daily production in Q1 has also helped to strengthen TAQA’s financial position, while the company continues to progress major organic growth projects with two key developments, including a twin power production development in Morocco and the progression of the Bergermeer Gas Storage project.
H.E. Abdulla Saif Al-Nuaimi, CEO and Managing Director of TAQA, said: “TAQA has made a solid operational start to 2011, with a higher contribution from our oil and gas assets due to a combination of improved commodity pricing and increased production.”
“These positive results also reflect our increased footprint, where new assets – such as Fujairah 2 – are beginning to contribute additional revenues,” he added. “We continue to be focused on operational excellence and efficiency right across out business to ensure we deliver the maximum value possible.”
A mid-March change to the tax regime for the UK North Sea – backdated to January – contributed to a 53 per cent year-on-year increase in tax, which negatively impacted the company’s net profit after minority interests, down to $41.3 million from $78 million for the same period in 2010.
TAQA was also able to benefit from favourable oil prices during the quarter, with the WTI oil price averaging $94.45/bbl for Q1 2011, compared with $78.88/bbl in Q1 2010. Prices for Brent crude increased to an average of $105.71/bbl in Q1 2011 versus $68.43/bbl for the same period last year.
Meanwhile, North American natural gas prices declined year-on-year, with Henry Hub gas prices for the quarter averaged $4.20/mmbtu, down from $4.99/mmbtu for Q1 2010.
KEY NUMBERS – OIL AND GAS SECTOR
Total revenues: $794 million
Per cent of overall revenues: 64%
Total production (mboe/day): Global (138.8), N. America (87.3), UK (42.3), Netherlands (9.1).
Average net realised price of crude oil sold ($/barrel): N. America (78.88), UK (105.55), Netherlands (91.64).
Average net realised price of gas sold ($/thousand feet): N. America (4.12), UK (8.02), Netherlands (9.63).
