(MENAFN- Khaleej Times)
Abu Dhabi National energy Company or Taqa recorded on Wednesday a 42 per cent year-on-year jump in its first-half net profit after a significantly higher contribution from the oil and gas segment.
In a statement, the leading integrated utilities company said its net income of Dh2.9 billion was up by Dh2.4 billion from Dh504 million in H1 2020. It was adjusted by Dh1.5 billion for a one-off post tax impairment charge, to make an increase of 42 per cent.
The company recorded revenues of Dh22 billion, an 11 per cent surge on the same 2020 period due to higher commodity prices in the oil and gas segment.
The utility also announced a dividend of Dh618 million or 0.55 fils per share, the second in the financial year.
Taqa said it delivered a strong performance underpinned by its stable contracted and regulated utilities businesses. Results were boosted by improved commodity prices in the oil and gas segment, reflecting a recovery from softer economic conditions in 2020.
“Taqa has made strong progress on our commitment to stakeholders for 2021. We have delivered two interim dividend payments, refinanced maturing debt at record-low rates, broken ground on what will be the world's largest single-site solar project, unveiled a 10-year growth strategy and recently signed two MoUs for the development of green hydrogen, said Jasim Husain Thabet, CEO and managing director.
The company said Al Dhafra project, the world's largest single-site solar project that was announced at the end of 2020, will produce 2GW of power for 160,000 homes using four million solar panels.
Taqa's H1 capital expenditure was Dh2.0 billion, 3.0 per cent lower than previous year.
“Against the backdrop of favourable market conditions, we continue to adopt a prudent financial policy, which saw us fully repay our corporate credit facilities this quarter and increase available liquidity, Thabet said.
“We also continue to focus on achieving operational efficiencies within our utilities business and progressing our growth strategy to become a low carbon power and water champion, Thabet said.
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Issac John Editorial Director of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.
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