TAQA reports 2% fall in Q1 power & water revenue
Fall in earnings attributed to forced outages at some power plants
Abu Dhabi’s TAQA has released its Q1 2013 results, showing a 2% fall in revenues from its Power and Water business – down to US $503 million from $516 million a year before. The firm has attributed the fall to forced outages at its Shuweihat 1, Jorf Lasfar and Red Oak plants. Total power and water output capacities have remained the same (at 15,407 MW and 887 MIGD respectively). Overall, the firm’s revenues were down 6% at $1.476 billion.
“I can take some positives from what was a challenging quarter. Our major construction and development projects in Morocco, Ghana, the Netherlands and Iraq are all progressing very well and will start generating significant revenues in the next two to three years.
“Stronger natural gas prices in North America position us well to take advantage of our large land position and prospects in Western Canada. Similarly, new developments and discoveries in our North Sea business promise to extend the life of these assets. The halting of production on the Cormorant Alpha platform was the right thing to do to ensure the safety and integrity of this critical piece of North Sea infrastructure,” said Carl Sheldon, CEO of TAQA.
Construction and finance revenues from Jorf Lasfar and Takoradi 2 expansion projects were $140.7 million, offset by construction costs of $103.7 million.
The firm has said that the 700MW expansion project at Jorf Lasfar is progressing, and was 80% complete at the end of the quarter. The commissioning of the two expansion units is scheduled for the close of 2013 and early next year.
Stephen Kersley, CFO at the firm, added: “We started the year in a very strong financial position, having renewed our corporate credit facilities and secured all bond maturities for the year at unprecedented rates. The outlook remains strong, with increased liquidity and an enhanced debt maturity profile. Although our financial performance has been affected by operational outages, our cash flows remain extremely strong and we are well placed to benefit as those operational issues are resolved. I am also delighted that the strength of our cash flows have been recognised by Standard & Poor’s, which recently raised our A rating to a positive outlook.”