Taqa swings to profit in first quarter on higher oil prices and economic recovery | The National

Taqa swings to profit in first quarter on higher oil prices and economic recovery | The National

Abu Dhabi National Energy Company, also known as Taqa, swung to a Dh1.4 billion ($390 million) profit in the first quarter after posting a Dh596 million loss in the same period a year earlier, boosted by higher oil prices and an economic rebound from the Covid-19 pandemic.

Group revenue was 3.4 per cent higher at Dh10.3bn in the first quarter. Capital expenditure increased 18 per cent to Dh1.3bn, recovering from a period of low-spend due to the pandemic, which resulted in projects being postponed.

"Looking forward, the conditions are more optimistic as we see the demand for utilities and commodities bounce back after the universal challenges brought on from the pandemic," said Jasim Thabet, Taqa group chief executive and managing director.

The company declared an interim cash dividend of Dh618m for the first quarter.

Taqa's earnings before interest, tax, depreciation and amortisation rose 12 per cent, due to higher revenue, lower operating expenses and higher income from associates.

Taqa, which also operates oil and gas assets, reached average production volumes of 120 million barrels of oil equivalent per day, supported by higher production in Europe.