Abu Dhabi National Energy Company PJSC, a publicly listed company on the Abu Dhabi Securities Exchange, reported financial results for the first quarter of 2009.
Total revenue reached AED 4.2 billion compared with AED 4.0 billion for the same period in 2008, an increase of 5%.
Revenue from the electricity and water business, excluding supplemental fuel, increased by 14% to AED 1.4 billion, from AED 1.2 billion for the same period in 2008. This was primarily due to the expansion of Taweelah B and revenue from the Red Oak toll acquired in December 2008.
Revenue from oil and gas activities (including gas storage) reached AED 1.8 billion, compared with AED 2.1 billion for the same period in 2008 as a result of lower net realized oil and gas prices.
Peter Barker-Homek, Chief Executive Officer of TAQA, said, "There is little doubt that the first quarter of 2009 has been a one of the most challenging to-date, for both TAQA and the global economy. However, despite difficult conditions in global energy markets, which have seen the price of oil hit lows of $41.15 per barrel in February 2009, the results I present today are once again a clear endorsement of TAQA’s diversification strategy and proven management team. They also support our long-term objective of building a distributed asset base in North America, Europe and the Middle East.
"We remain committed to rigorous and disciplined cost control and to ensure that as production and net capacity increases, so too do efficiencies across the group.
"As I look out into 2009, I take pride in the strength of our position and quality of the team we have built. TAQA remains well funded with no short-term refinancing needs and significant free cash flow to cover existing obligations and fund opportunities for future growth."
During the first quarter of 2009, global energy markets continued to decline sharply, particularly when compared with the first quarter of 2008. This saw the Brent oil price fall from US $96.97 at the end of March 2008 to US $50.56 at the end of the same quarter of 2009.
This position was also reflected in North America, with the WTI crude price falling from US $96.25 to US $51.37. Throughout the quarter, US crude oil inventories continued to rise, which put pressure on prices. The lowest point was reached in February 2009, but there has been a steady recovery in recent weeks.
The US dollar also strengthened against the Canadian dollar from CDN$1.02 / US$1 on March 31, 2008 to CDN$1.26 / US$1 on March 31, 2009, reaching a high of CDN$1.29/US$1 on March 9, 2009.
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