UAE’s TAQA Q1 profit drops by close to 95%

Profits were hit by foreign exchange losses and revaluation of U.S power assets

Abu Dhabi National Energy Company (TAQA) on Thursday reported a nearly 95 per cent drop in first quarter profit, hit by foreign exchange losses and revaluation of U.S power assets.

The state-owned oil explorer and power producer made a net profit attributable to shareholders of Dhs6m ($1.63m) for the period ending March 31, 2019, it said in a bourse filing. That compared with Dhs110m in the prior-year period. Foreign exchange losses totaled Dhs65m in the quarter versus Dhs3m in first quarter 2018.

TAQA’s administrative and other expenses doubled to Dhs157m in the quarter from a year earlier.

“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,” TAQA said in a statement.

Revenues in the quarter were Dhs4.33bn versus Dhs4.34bn in first quarter of 2018.

TAQA’s oil and gas production in the quarter increased slightly to 126.7 million barrels of oil equivalent per day compared to the year-ago period.

The company’s total debt was reduced by Dhs907m in the quarter.