Abu Dhabi National Energy Company PJSC (Taqa) swung to a net profit for the first half of the year on back of higher commodity prices and lower costs.
The energy firm reported a net income of 112 million dirhams in the first six months of 2017, compared a net loss of 1.2 billion dirhams in the same period last year, according to a company statement.
Its total revenues in in the period ending June 30 were 8.4 billion dirhams, up 5 per cent from the 7.9 billion it made in the year-earlier period.
“Taqa’s results for the first half of 2017, which demonstrated a positive net income for the second consecutive quarter, were driven by strong operational performance, continued efficiency improvements and a focus on core operations,” said Saeed Hamad Al Dhaheri, acting chief operating officer of Taqa.
TAQA suffered a full-year loss for 2016 of 18.55 billion dirhams because of impairments related to its oil and gas assets as energy prices slumped, but it has made profits in both quarters so far this year.
In May, it also pulled out of its wholly-owned subsidiary in India, Himachal Sorang Power, which resulted in a gain of 86 million dirhams.
“A key operational milestone was the achievement of first oil from our Atrush project in the Kurdistan Region of Iraq post period in July. Atrush will be a significant contributor to the group’s long-term cash flows and net income,” Al Dhaheri said.
Taqa’s production from the Atrush block in the Kurdistan Region of Iraq is expected to ramp up towards 30,000 bps during the year.
The company’s total oil production during the six months was 131,086 barrels of oil equivalent per day (boed), down 11 per cent from the first half of 2016. Taqa said production was impacted by prior capital expenditure reduction.
Operating margins per barrel increased in the North America and Europe, compared to the year-ago period, driven by higher energy prices and cost cuts, Taqa said.