TAQA confirms India and Iraq withdrawal
Abu Dhabi National Energy Co pulls out of power project investments.
Abu Dhabi National Energy Co (TAQA) has confirmed plans to withdraw from power projects in India and Iraqi Kurdistan.
A change in strategy led the company to end negotiations to invest in two hydroelectric plants in India and the Sulaymaniyah power station.
The withdrawals will improve free cash flow, reduce debt leverage over time and deliver a stronger sustainable financial performance, the company said in a second quarter earnings statement that revealed a return to profit.
Buoyed by record oil and gas production, the state-controlled explorer and power supplier booked a net profit of AED 239mn ($65.1mn) for the three months ended June 30, overturning a loss of AED 172mn booked a year earlier, the company said on Wednesday.
Revenue for the second period of 2014 was AED 6.52bn up from AED 5.86bn in the corresponding period last year.
The rise was largely down to a 24% increase oil and gas production to 158,000 barrels of oil equivalent.
Its power and water production both grew 2% to 32,250 GWh and 122,955 million imperial gallons per day (MIGD) respectively, TAQA said.
International power generation assets produced 6,692 GWh, up 13% year-on-year, boosted by the completion of the Jorf Lasfar expansion in Morocco.
Output from its domestic power fleet was flat at 25,558 GWh.