Abu Dhabi National Energy Company (TAQA) said it made a net profit of AED 6 million in the first quarter, a drop of 95 per cent as the company suffered from forex losses and devaluation of US-power assets.
TAQA had made a net profit of 110 million dirhams in the prior-year period. Foreign exchange losses totalled 65 million dirhams in the quarter, surging from 3 million dirhams in first quarter 2018.
“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,” the company said in a statement.
TAQA said its EBITDA (earnings before income tax, depreciation and amortisation) rose by AED 162 million in the first three months ending March 31, 2019 to AED 2.4 billion
Revenues in the quarter were 4.33 billion dirhams compared to 4.34 billion dirhams in first quarter 2018.
TAQA’s oil and gas division production for the first quarter of 2019 rose slightly to 126.7 million barrels of oil equivalent per day (mboe/d), from 123.8 mboe/d in Q1 2018.
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 per cent in the first three months of 2019, up from 87.4 per cent in Q1 2018, as a result of strong performance from the UAE fleet.
Total liquidity at the end of the first quarter of 2019 remained strong at AED 13.0 billion, including AED 3.1 billion in cash and cash equivalents, and AED 10.0 billion of undrawn credit facilities.
Total debt was reduced by AED 907 million during the quarter primarily driven by scheduled project debt repayments, with an associated reduction in interest paid of AED 123 million compared with the same period in 2018.
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.”