Abu Dhabi National Energy Co PJSC 3rd Quarter Results (3510X)

TIDM69TM

RNS Number : 3510X

Abu Dhabi National Energy Co PJSC

23 November 2017

TAQA announces 9M 2017 Financial Results

9 November 2017

ABU DHABI, United Arab Emirates - Abu Dhabi National Energy Company PJSC (TAQA), a leading global energy company headquartered in Abu Dhabi with operations in 11 countries, today announced its financial results and operational highlights for the period ended 30 September 2017.

Commenting on the results, Saeed Hamad Al Dhaheri, acting Chief Operating Officer, said:

"We're pleased to see continued strong free cash flow generation, as well as improved margins across our portfolio, which has benefited from increased efficiencies across our operations. During the period, TAQA achieved first oil at our Atrush development in Iraq, which marks an important milestone for the Group. The company has also been able to reduce our financing costs and gradually lower our debt, which will have a positive impact on our financial performance over the coming years."

Financial highlights:

-- Total revenues of AED 12.5 billion, an increase of 3% on the first nine months of 2016 (9M 2016: AED 12.1 billion) primarily driven by higher commodity prices.

-- EBITDA of AED 6.8 billion, up 7% on the same period in the previous year (9M 2016: AED 6.3 billion) supported by higher revenues and sustained cash cost savings.

-- Net loss of AED 82 million for the first nine months of 2017. Third quarter income is impacted by the unscheduled outage at the Sohar Aluminum smelter and negative mark-to-market movements at our US power plant tolling agreement during the period.

-- Free cash flow of AED 5.6 billion, an increase of 9% (9M 2016: AED 5.1 billion) with increased capital investment activity being more than covered by the higher EBITDA and favourable working capital movements compared to the same period in the prior year.

-- Total liquidity remains strong at AED 12.1 billion, including AED 2.9 billion in cash and cash equivalents and AED 9.2 billion of undrawn credit facilities. Total debt was reduced by AED 2.6 billion in the first nine months of 2017 while interest paid reduced by AED 286 million.

Operational Highlights: Power & Water

-- Global power generation stable at 63,237 GWh compared to 64,590 GWh in 9M 2016. Global technical availability was at 92.1% compared to 93.8% in 9M 2016, negatively impacted by unplanned outages in Ghana.

-- UAE operations produced 49,899 GWh of electricity and 188,360 million imperial gallons of desalinated water (MIGD), stable compared to 9M 2016 (50,806 GWh and 188,166 MIGD) and continuing to deliver the vast majority of water and electricity requirements of Abu Dhabi.

Operational Highlights: Oil & Gas

-- Production volumes of 128,300 barrels of oil equivalent per day (boed), down 10% on 9M 2016 (142,200 boed) impacted by natural decline, prior capital expenditure reductions and planned North Sea platform maintenance.

-- Operating margins per barrel increased in North America and Europe compared to 9M 2016, driven by higher realised prices and sustained cost efficiency.

-- Iraq oil production started in July. Production from the Atrush Block in the Kurdistan Region of Iraq is expected to ramp up towards the 30,000-barrel-per-day project capacity (gross) in 2017.

Post-period developments

-- Payments for Atrush deliveries commenced in October with the Kurdistan Region Government completing its first payment for July crude oil exports.

-- A $500 million bond was retired at maturity on 25 October 2017. The retirement was funded from a draw down under TAQA's existing revolving credit facility which carries a lower interest rate.

Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/3510X_-2017-11-23.pdf

- ENDS -

TAQA media relations:

Sara Al Blooshi

Tel: [phone]

[e-mail]

This information is provided by RNS

The company news service from the London Stock Exchange

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November 23, 2017 05:40 ET (10:40 GMT)