Abu Dhabi Energy (Taqa) reported a 2018 full-year profit of AED 398 million, more than double from the year before as oil and gas prices rose.
Taqa’s revenues grew by 6 per cent in 2018 to AED 17.7 billion and EBITDA grew by 6 per cent to AED 9.7 billion, mainly driven by an increase in oil and liquid prices in 2018, the company said in a statement.
It’s oil and gas business achieved average production of 123,100 boe/d, a 2.4 per cent decline from 2017 as the company mitigated natural base decline of existing assets with investment in new development projects, the most notable being the Atrush field in Iraq which achieved entitlement production of 3,855 boe/d over 12 full months of operations in 2018.
Free cash-flow generation remained strong at AED 7.1 billion despite higher capital expenditures, which increased from AED 1.3 billion in 2017 to AED 1.7 billion in 2018.
TAQA’s capex was completely self-funded by cash generated from the company’s operations and was focused on sustaining and developing its power and water and oil and gas assets, positioning the company to leverage future growth opportunities.
The company reduced its total debt by AED 4.0 billion, and reduced interest paid by AED 163 million during 2018. The robust financial performance has resulted in improved leverage ratios where Net Debt-to-EBITDA multiple improved to 6.5 from 7.3 the year before.
TAQA also reported a strong liquidity position of AED 13.1 billion, with cash and cash equivalents of AED 3.4 billion and undrawn credit facilities of AED 9.7 billion, giving the company flexibility to address opportunities and challenges as they arise.
TAQA’s Chairman, H.E. Saeed Mubarak Al-Hajeri, said: “Despite challenging business and economic conditions, TAQA’s financial and operational performance remained impressive throughout the year. We continued to define and implement a growth strategy that took into account emerging challenges while also capitalising on the opportunities offered by the evolving power, water, oil and gas industries.”
Saeed Hamad Al Dhaheri, CEO of TAQA said: “In a year that businesses confronted challenges emerging from the global energy transition, TAQA has delivered strong financial and operational performance in 2018 with profits up year-on-year and revenue increasing by approximately AED 1.0 billion. In 2018, we successfully achieved a debt reduction of AED 4.0 billion, which was the result of a robust cost rationalisation exercise and operational improvements executed across the organisation.”