Taqa’s Q1 profit rises 37% on higher oil prices

Abu Dhabi National Energy Company, better known as Taqa, posted a 37% increase in profits in the first quarter as revenues rose during the period on the back of higher oil prices.

Net profit attributable to shareholders for the three-month period ending in late March amounted to 1.97 billion dirhams ($536 million), the company said in a statement. statement on the Abu Dhabi Stock Exchange, where its shares are traded.

Revenues during the period jumped 20% to 12.4 billion dirhams.

“Taqa delivered strong performance supported by its stable, regulated and contracted utilities business and boosted by rising commodity prices,” the company said.

Oil prices are currently trading higher, benefiting oil and gas companies around the world.

Brent crude, the global benchmark for two-thirds of the world’s oil, has risen more than 30% since the start of this year after falling from a 14-year high of around $140 a barrel in March, amid supply problems due to the Russian military offensive. in Ukraine.

Last month, Moody’s Investors Service revised its outlook for the global energy industry to positive from stable as rising commodity prices are expected to boost profits for oil and gas companies.

Profits of energy companies active in exploration and production, refining and marketing and oil services will increase due to higher oil prices, the rating agency said.

Taqa’s average oil and gas production volumes increased 5% in the first quarter, driven by higher production in Europe, the company said.

“Current market conditions further strengthen our positioning to actively pursue organic and inorganic growth opportunities in the UAE and abroad, and position Taqa as a competitive, agile and fast-executing investor,” said the Managing Director and Group Chief Executive, Jasim Thabet.

The company also declared a first interim cash dividend for the year of Dh675 million (0.60 fils per share), in line with its dividend policy.

Besides the United Arab Emirates, Taqa has operations in countries such as Canada, Ghana, India, Iraq, Morocco, Oman, the Netherlands, Saudi Arabia, the United Kingdom and the United States. It has investments in power and water generation, as well as in the oil and gas sector.

The company is set to become a shareholder in Abu Dhabi clean energy company Masdar, alongside Adnoc and Mubadala Investment Company.

It will take a 43% stake in Masdar’s renewable energy business while Mubadala and Adnoc will retain 33% and 24% respectively after the deal closes in the coming months.

Taqa will also take a 24% stake in Masdar’s green hydrogen business, with Adnoc holding 43% and Mubadala 33%.

The expanding company plans to drive growth in the renewable energy sector through acquisitions, said Farid Al Awlaqi, the company’s executive director of production. The National earlier this week.

The Abu Dhabi-listed utility aims to generate more than 30% of its electricity from clean sources by 2030, up from 5% currently, he said.

Updated: May 12, 2022, 11:19 a.m.

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Felix J. Dixon