Abu Dhabi TAQA’s Q2 profit falls 17% on lower energy prices, production

The energy company is set to pay $199mln in dividend for the quarter

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Abu Dhabi National Energy Company, also known as TAQA, posted a 17% dip in its Q2 2023 net profit to 1.92 billion ($523 million) on lower energy prices and production.

The result was mostly in line with the analysts' mean estimate of AED 1.98 billion, according to data provider Refinitiv.

Gross revenue for the period was a shade higher at AED 13.66 billion versus AED 13.01 billion in the year ago period, the energy company said in a statement on the Abu Dhabi Securities Exchange on Monday.

Net profit for the first six months of the year was AED 13.5 billion, an increase of AED 9.2 billion, mainly driven by a one-off gain of AED 10.8 billion recognised on the acquisition of a 5% shareholding in ADNOC Gas. This was in part offset by a one-off AED 1.2 billion deferred tax liability associated with the introduction of UAE corporate income tax from 1 January 2024.

Net income excluding these one-off items was AED 3.9 billion, 9% lower than the prior period.

TAQA said oil & gas average production volumes in H1 fell to 117.0 thousand barrels of oil equivalent per day (boepd), down 6% compared to 2022, mainly due to the shutdown of operations in Iraq and the natural decline in production of late-life UK assets.

The board of the energy company also approved an interim cash dividend of 0.65 fils per share, totalling about AED 731 million ($199 million), for Q2 2023.

(Reporting by Brinda Darasha; editing by Seban Scaria)

brinda.darasha@lseg.com

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