Abu Dhabi National Energy Co PJSC Half-year Report (2983Q)

TIDM69TM

RNS Number : 2983Q

Abu Dhabi National Energy Co PJSC

10 September 2017

TAQA announces First Half 2017 Financial Results

   --    Second consecutive quarterly profit post-transformation 
   --    First half free cash flow increases 33% 
   --    Oil production starts in Kurdistan Region of Iraq in July 

1o August 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 June 2017.

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

"TAQA's results for the first half of 2017, which demonstrated a positive net income for the second consecutive quarter, were driven by strong operational performance, continued efficiency improvements and a focus on core operations.

A key operational milestone was the achievement of first oil from our Atrush project in the Kurdistan Region of Iraq post period in July. Atrush will be a significant contributor to the Group's long-term cash flows and net income.

Against the backdrop of a prolonged lower oil and gas price environment, TAQA will continue to concentrate on safe and efficient operations while looking for opportunities to optimise our portfolio."

Financial highlights:

-- Total revenues of AED 8.4 billion, an increase of 5% on the first half of 2016 (H1 2016: AED 7.9 billion), driven primarily by the impact of higher realised oil and gas prices.

-- EBITDA of AED 4.7 billion, up 15% on the same period in the previous year (H1 2016: AED 4.1 billion) boosted by the higher realised commodity prices and sustained cash cost savings.

-- Net income of AED 112 million, compared to a net loss of AED 1.2 billion in H1 2016, as a result of higher commodity prices, and lower costs following the conclusion of a two-year transformation programme.

-- Free cash flow of AED 4.1 billion, an increase of 33% (H1 2016: AED 3.1 billion) with the increased capital investment activity being more than covered by higher EBITDA and favourable working capital movements.

-- Total liquidity remains strong at AED 12.4 billion, including AED 3.5 billion in cash and cash equivalents and AED 8.9 billion of undrawn credit facilities. Total debt was reduced by AED 1.7 billion in the first half of 2017 while interest paid reduced by AED 272 million.

Operational Highlights: Power & Water

-- Global power generation stable at 38,346 GWh compared to 39,090 GWh in H1 2016. Global technical availability was at 90.0% compared to 92.0% in H1 2016.

-- UAE operations produced 30,091 GWh of electricity and 120,643 million imperial gallons of desalinated water, stable compared to H1 2016 and continuing to deliver the vast majority of water and electricity requirements of Abu Dhabi.

Operational Highlights: Oil & Gas

-- Production volumes of 131,086 barrels of oil equivalent per day (boed), down 11% on H1 2016 (147,415 boed) impacted by prior capital expenditure reductions.

-- Operating margins per barrel increased in North America and Europe compared to H1 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.

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

http://www.rns-pdf.londonstockexchange.com/rns/2983Q_-2017-9-10.pdf

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TAQA media relations:

Allan Virtanen, Head of Communications

Tel: [phone] | Mob: [phone]

[e-mail]

This information is provided by RNS

The company news service from the London Stock Exchange

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September 11, 2017 02:00 ET (06:00 GMT)