Abu Dhabi National Energy Company PJSC has reported financial results for the period ended September 30, 2008.
Key highlights for the nine months ended September 30, 2008:
Oil and gas revenues for the nine months ended September 30, 2008 reached AED 6.2 billion, compared with AED 462 million for the first nine months of 2007. This increase was driven primarily by the revenues from TAQA North of AED 4.8 billion comprised of the full consolidation of all three TAQA acquisitions in Canada, compared with 2007 which only included revenues from TAQA Bratani and TAQA’s Northrock acquisition from August 15, 2007.
Total revenues from the sale of electricity and water were AED 4.0 billion for the nine months ended September 30, 2008, compared with revenues of AED 3.4 billion for the nine months ended September 30, 2007. When comparing the periods under review, the revenue of AED 874 million from TAQA Generation during 2008 compares with AED 479 million for the five month post-acquisition period in 2007.
Gas storage revenues for the period ended September 30, 2008 were AED 391 million compared with AED 106 million for the same period in 2007. This increase was attributable to revenues from East Cantaur, part of TAQA North, which was not included in the first nine months of 2007.
Finance costs were AED 2.8 billion for the nine months ended September 30, 2008, an increase of 58% when compared with finance costs of AED 1.8 billion for the nine months ended September 30, 2007 as a result of costs related to acquisitions and on new bonds of US $1.5 billion issued in July 2008.
As at September 30, 2008 TAQA's total assets were AED 85.4 billion, compared with AED 67.8 billion at December 31, 2007.
Key highlights of the results for the third quarter of 2008:
Revenue from oil and gas activities was AED 2.1 billion, compared with AED 308 million for the third quarter 2007.
In the third quarter of 2008, finance costs increased to AED 984 million from AED 644 million in the third quarter of 2007, reflecting the financing arrangements put in place to fund acquisitions made over the previous 12 months.
Upstream and Midstream
Peter Barker-Homek, Chief Executive Officer of TAQA, said, "The past quarter has seen TAQA consolidating its position across its core target markets, while continuing to monitor global opportunities for further acquisitions. Today's results are testament to the benefits of our diversification strategy. While revenues during the third quarter derived from oil and gas were dampened by lower average commodity prices, the growing strength of our midstream and downstream portfolio has acted to mitigate this. The positive impact of the acquisitions we have made is directly visible in our bottom line.
"As I look forward into 2009, we are well financed. Equipped with extensive available credit facilities, we do not have any short term refinancing needs. As a result, our strategic plan remains unaffected by recent events in financial markets and we continue to build a strong operational track record of which I am immensely proud.
Corporate activity during the third quarter 2008
In June, TAQA announced the issuance of AED 4.15 billion of convertible bonds which converted into common shares on 1 September 2008 at an exchange ratio of 500 shares for each AED 1,000 bond. Accordingly, 2,075 million new ordinary shares were issued and the company’s paid up share capital was increased by AED 2,075 million to AED 6,225 million.
The new shares commenced trading on the Abu Dhabi Securities Exchange on 16 October 2008.
On July 7, 2008 TAQA announced that TAQA Bratani had signed a Sale and Purchase Agreement with Shell U.K. Limited and Esso Exploration and Production (UK) Limited to purchase the equity pertaining to operating licenses for six offshore fields.
In September, TAQA agreed to purchase EnCore Oil Nederland B.V., a wholly owned subsidiary of EnCore Oil plc, whose only asset is a 10% interest in the Amstel field offshore the Netherlands, for US $5.5 million in cash on completion. Following completion of the transaction, EnCore Oil Nederland B.V. will be integrated into TAQA Energy B.V.
On September 26, TAQA completed the sale of a 20% interest in Shuweihat CMS International Power Company (SCIPCO) and a 50% interest in Shuweihat O&M Limited Partnership ("SOMLP") to Sumitomo Corporation. TAQA retains a 54% interest in SCIPCO.
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