Abu Dhabi National Energy Co (TAQA), the state-owned oil explorer and power supplier, swung to a loss in the second-quarter weighed down by derivatives and hedging exposures and a slump in income from its oil and gas business.
TAQA, 75 per cent owned by the government of Abu Dhabi, reported a net loss of Dhs172 million ($46.83 million) for the quarter ending June 30, compared with a profit of Dhs447 million in the corresponding period in 2012, the company said in a bourse statement.
Revenue for the quarter was Dhs2.1 billion, lower than the Dhs2.6 billion generated in the prior-year period.
The company posted a loss of Dhs114 million due to changes in fair value of derivatives and hedges in the quarter. This compares to a gain of Dhs80 million in the second quarter of 2012.
Total oil and gas revenues declined by 18 per cent in the first half of the year to Dhs4.8 billion for the first half 2013, due to lower production in the U.K. North Sea and softer pricing in Europe for oil.
The state-owned utility has investments in the energy and power sector in the Middle East, India, Africa, the U.K. and north America.
Its shares were trading down 3.1 per cent on the Abu Dhabi bourse at 0745 GMT following the results announcement.