TAQA profits drop 26 per cent year on year
Higher UK tax rates and impairment charges impact firm's 2011 margins
Abu Dhabi National Energy Company, TAQA, has announced that its full-year profit for 2011 fell 26 per cent following higher UK taxes and a $144m charge for its Canadian operations.
A drop in net income to AED752m from AED1.01bn the previous year also contributed to the company’s profit drop.
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 net impairment charge of AED 528 million, or 8 fils per share, reflects an impairment of AED 706 million, offset by a deferred tax benefit of AED 178 million.
In addition, profits were affected by additional taxes on UK oil and gas producing companies which came into effect on 24 March 2011. Income tax expense for the UK was AED 1,588 million higher in 2011, compared with 2010.
Carl Sheldon, Chief Executive Officer of TAQA, commented: “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 on-stream within two years, a record for the region, adding new production to our Oil & Gas portfolio.
“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.”