TAQA records Dh4.3bn of revenue in Q1 2019
Company profits drop due to foreign exchange losses and adverse movements on mark-to-market revaluations within its US-based power asset
Abu Dhabi National Energy Company PJSC (TAQA) (ADX: TAQA) (ISIN: AEA002401015), a leading global energy company headquartered in Abu Dhabi with operations in 11 countries, has announced its financial results and operational highlights for the three-month period ending March 31, 2019.
TAQA recorded Dh4.3bn of revenue in the quarter. The company reported Dh2.4bn in EBITDA, an increase of 1% compared to the first three months of the previous year. This was driven by strong performance of the oil and gas division with an Dh162mn increase.
The company posted a profit of Dh6mn (attributable to shareholders) in the first quarter of 2019 compared to Dh110mn in the first quarter of 2018. Revenue remained almost flat at Dh4.3 billion during the period.
"While the Group maintained stable operational results, the bottom line was impacted by uncontrollable items, namely foreign exchange losses and adverse movements on mark-to-market revaluations within its US-based power asset. This resulted in a net profit (TAQA share) of Dh6mn in Q1 2019," the company said in a statement.
Foreign exchange losses of the firm reached Dh65mn in the first quarter of 2019 compared to Dh3mn during the same period last year.
On the operational side, TAQA’s power and water division showcased robust performance with gross power generation of 17,597 GWh and 54,408 MIG of gross water desalination. Technical availability of power plants increased to 88.9% in the first three months of 2019, up from 87.4% in Q1 2018, as a result of strong performance from the UAE fleet.
TAQA’s oil and gas division achieved production for the first quarter of 2019 of 126.7 mboe/d, a slight increase compared to 123.8 mboe/d in Q1 2018.
Total liquidity at the end of the first quarter of 2019 remained strong at Dh13.0bn, including Dh3.1bn in cash and cash equivalents, and Dh10.0bn of undrawn credit facilities.
Total debt was reduced by Dh907mn during the quarter primarily driven by scheduled project debt repayments, with an associated reduction in interest paid of Dh123mn compared with the same period in 2018.
Commenting on the results, Saeed Mubarak Al Hajeri, TAQA’s Chairman of the Board, said, "We achieved another solid quarter of operational results. TAQA continues to demonstrate the resilience of its business model despite the various external challenges. We are also extremely pleased to make progress on our strategic priorities by maintaining our capital discipline whilst reducing our total debt levels."
Saeed Hamad Al Dhaheri, TAQA’s Chief Executive Officer, added: “Our first quarter results are evidence that we are successfully executing on our strategy. The improvements made in our operational performance and continued reduction of debt show that we are on the right path to deliver value to our stakeholders and future growth.”