TIDM69TM
RNS Number : 3057X
Abu Dhabi National Energy Co PJSC
09 August 2018
9(th) August 2018
Financial highlights for the periods ending 30 June:
Three Months Six Months Ended
Ended
30-Jun 30-Jun % 30-Jun 30-Jun %
(AED millions) 2018 2017 Change 2018 2017 Change
-------------------------------- -------- -------- ------- --------- -------- -------
Total Revenues 4,264 4,211 1% 8,601 8,352 3%
EBITDA(1) 2,418 2,249 8% 4,758 4,681 2%
Net Profit (Equity holders) 168 35 380% 278 112 148%
Free cash flows(2) 1,795 2,067 -13% 3,373 4,098 -18%
-------------------------------- -------- -------- ------- --------- -------- -------
1) Earnings before interest, taxes, depreciation and amortization
defined as IFRS earnings before income tax, excluding all finance
charges and depreciation, depletion and amortization.
2) Free cash flow is defined as operating cash flows less investing
cash flows as per the IFRS cash flow statement.
-- Following TAQA's return to full year profitability in 2017,
the Group has continued to generate positive net income with AED
168 million being recorded in Q2 2018, compared to AED 35 million
for the same period last year. The results are mainly due to
improved stability in oil and liquids prices.
-- Net Income for H1 2018 was AED 278 million versus AED 112
million in the first half of 2017, a 148% increase, this has been a
result of the items noted above for the Q2 discrete quarter
results.
-- Quarterly Revenues of AED 4.3 billion demonstrate benefits of
higher oil prices in the quarter more than offsetting declines in
hydrocarbon production as well as the lower North American gas
price environment relative to Q2 2017.
-- H1 2018 revenues topped AED 8.6 billion, a marginal
improvement versus H1 2017 AED 8.4 billion. Again, this increase
has been driven by the higher oil and liquids prices which has more
than offset the lower volumes as well as increased fuel revenue in
Morocco.
-- H1 2018 consolidated EBITDA was AED 4.8 billion, a marginal
improvement versus H1 2017 (AED 4.7 billion).
-- Lower free cash flow in Q2 2018 of AED 1.8 billion relative
to the same period in 2017 (AED 2.1 billion) is in line with
increased capital investment spending which has brought on new
production to offset natural decline.
-- Total liquidity remains strong at AED 14.6 billion including
AED 4.0 billion in cash and cash equivalents, and AED 10.6 billion
of undrawn credit facilities.
-- Across the six month period the Group have been able to
reduce its total debt by AED 1.6 billion and have witnessed a
reduction in interest paid of AED 157 million compared to the same
period last year.
Operational Highlights:
Power and water:
-- Technical Availability across the fleet was 92.5% for the
First Half (H1) of 2018, compared to 90.0% for the same period of
2017. UAE asset improved from 91% in H1 2017, to 92.3% in 2018.
Additionally, International operations' availability improved
substantially from 85.2% in the first six months of 2017, compared
to the current 93.4% in 2018, mostly driven by better performances
in Ghana.
-- Global power generation was 42,662 GWh in H1 2018, compared
to 42,030 GWh generated globally in H1 2017. International
operations showed a decisive improvement in both availability and
generation versus the first half of 2017, while UAE power
generation remains relatively stable with 29,265 GWh in H1 2018,
compared to 30,091 GWh in H1 2017. UAE Water desalination was
117,642 million imperial gallons (MIG) in H1 2018, versus 120,643
MIG for the same period of 2017, continuing to supply the majority
of Abu Dhabi's requirements.
Oil and gas:
-- The Group's average daily production for the second quarter
of 2018 was 117,389 boe/d versus 129,993 boe/d in Q2 2017.
Year-to-date the average production is 120,600 boe/d compared to
131,086 boe/d H1 2017. TAQA's increased capital investment spending
in Q4 2017 and Q1 2018 has brought on new production to offset
natural decline. Production in North America remained broadly
consistent compared to the same period last year, however, the
impacts of natural decline and unplanned outages in the North Sea
has resulted in lower production from our European operations.
Partially offsetting this lower production was our volumes from the
Atrush block in Kurdistan which only commenced operations in July
2017.
Management Commentary on Group results:
ABU DHABI, 9(th) August 2018 - Abu Dhabi National Energy Company
PJSC (TAQA), a leading global energy company with operations in 11
countries, has reported a net profit of AED 278 million for the
first half of 2018, a rise of 148 percent from a year earlier.
TAQA's oil and gas business is benefiting from higher commodity
prices, while its power and water business has also seen improved
performance in the last year. The company has also reduced finance
costs by reducing debt and successfully issuing a $1.75 billion
bond on favourable terms.
In the first half of 2018, TAQA recorded a 3 percent
year-on-year rise in revenues to AED 8.6 billion, while EBITDA
increased by 2 percent to AED 4.8 billion.
The company reduced its total debt by AED 1.6 billion during the
first half, and the cash interest paid on its debt decreased by AED
157 million in the first half, compared to a year earlier.
Commenting on the results, Saeed Mubarak Al Hajeri, the
Chairman, said: "TAQA's performance has continued to improve this
year due to prudent financial management and major achievements by
our teams in enhancing operational efficiencies across both the oil
and gas business, and the power and water business. The company is
well positioned for growth, and we intend to deploy our deep
international expertise on new initiatives, with a focus on power,
where we expect strong demand in the coming years, especially in
the Middle East and North Africa region.
"The two-year transformation programme has concluded and we are
making steady progress as a business, as witnessed with the
increases we're seeing on net income and the efforts made on debt
reduction."
Saeed Hamad Al Dhaheri, Acting COO at TAQA added: "The
sustainable efficiencies that we have driven through the business
have allowed our operations in Europe to benefit fully from the
higher oil price environment, while we are also delivering healthy
returns from our power and water business. The company's strategy
is to continue to optimize our assets. That means deploying our
expertise to extend the life of our oil and gas assets in Europe,
and harnessing unconventional technologies and allocating greater
capital to the production of liquids in North America."
TAQA's power and water business, which includes assets in the
UAE, Oman, India, Morocco, Ghana and the United States, continues
to deliver steady income. The company has enhanced efficiency
across its operations. In particular, the international operations
have improved substantially from 85.2% in the first six months of
2017 compared to the current 93.4% in 2018, mostly driven by the
performance of the plant in Ghana. This reliability of power supply
has had a major positive impact on local communities and
businesses.
The oil and gas business in Europe is benefiting from higher oil
prices which has more than offset the natural decline in
production, and TAQA continues work to extend the lifespan of its
assets. The company has successfully carried out its "Eider Bypass
Project" to keep key platforms in operation and optimise cash
flows.
This year, TAQA has continued to strengthen its balance sheet.
The company's completion of a $1.75 billion dual-tranche bond issue
in April, which was 4.7 times subscribed, was key to reducing
long-term financing costs.
During the first half, the company generated free cash flow of
AED 3.4 billion. Total liquidity remains strong at AED 14.6
billion, including AED 4.0 billion in cash and cash equivalents and
AED 10.6 billion of undrawn credit facilities.
Click on, or paste the following link into your web browser, to
view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/3057X_1-2018-8-9.pdf
- ENDS -
TAQA media relations:
Sara Al Blooshi
Tel: +971 2 691 4940
Media.HQ@taqaglobal.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
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END
IR GUGDIDXGBGIC
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