Abu Dhabi National Energy Co (TAQA), which got a financial lifeline from its top shareholder last month, swung to its first profit in two years due to higher commodity prices, driving its shares up on Thursday.
Last month the Abu Dhabi Water & Electricity Authority (Adwea) raised its stake in the firm to 74 per cent from 52.38 per cent after granting TAQA land valued at Dhs18.7bn that could potentially offset accumulated losses.
TAQA, made a net profit attributable to equity holders of Dhs77m ($20.9m) in the three months to March 31, compared to a net loss of Dhs608m a year ago, a company statement said.
Revenues rose to Dhs4.1bn, up 6 per cent, mainly due to higher oil and gas prices.
But production volumes of 132,200 barrels of oil equivalent per day (boed) were 14 per cent lower versus the same quarter last year, the statement said.
TAQA made a loss of Dhs18.55bn in 2016 and has cut 1,400 jobs since 2014, bringing the headcount down to 2,200.
TAQA, which has operations in India, Iraq, The Netherlands and North America, might also sell some of its oil and gas interests in North America to raise capital for its core business.
“The transformative cost reduction initiatives are now sustainably embedded across the organisation and with the balance sheet stabilised, we are now well positioned to secure future growth as market conditions stabilise and improve,” Saeed al Dhaheri, acting chief operating officer, said in the statement.