TAQA Fourth Quarter and Full Year 2007 Financial Results
Revenues grew 72% to reach AED 8.3 billion and profit exceeds AED 1 billion
The Abu Dhabi National Energy Company PJSC, a publicly listed company on the Abu Dhabi Securities Market (ADSM: TAQA), today reported financial results for the fourth quarter and full year 2007.
Key highlights of the results for Q4 2007:
Total revenue reached AED 3.0 billion compared with AED 2.5 billion for the same period in 2006, an increase of 23 per cent.
o Revenue from the electricity and water business grew by 57 per cent to AED 1.3 billion, from AED 0.8 billion for the same period in 2006. This does not include supplemental fuel sales to allow for a like-for-like comparison.
o Revenue from oil and gas accounted for AED 0.9 billion (there is no comparable like-for-like figure in 2006). This figure includes gas storage revenue.
EBITDA of AED 1.8 billion for Q407, giving an EBITDA margin of 59 per cent versus EBITDA of AED 1.1 billion and a margin of 45 per cent in the same period in 2006. EBITDA margin for 2007 excluding supplementary fuel would be 78 percent.
Finance costs increased from AED 475 million to AED 733 million, to fund acquisitions.
Net profit (after minority interests) grew 189% per cent to AED 653 million compared to AED 226 million in the same quarter in 2006.
Basic earnings-per-share rose 220 per cent to AED 0.16 for the quarter.
Key highlights of the results for the full year 2007:
Revenue of AED 8.3 billion, an increase of 72 per cent from AED 4.8 billion For 2006.
o Revenue from the electricity and water business grew by 49 per cent to AED 4.7 billion, from AED 3.2 billion for 2006.This excludes supplemental fuel sales in both years.
o Revenue from the oil and gas businesses accounted for AED 1.4 billion (there is no comparable like-for-like figure in 2006). This figure includes gas storage revenue.
EBITDA of AED 5.2 billion, versus EBITDA of AED 3.0 billion and a consistent margin of 62 per cent across both years.
Finance costs increased from AED 1.4 billion to AED 2.5 billion, due to acquisitions completed during 2007.
Net profit (after minority interests) grew 113 per cent to AED 1.0 billion compared to AED 0.5 billion for 2006.
Basic earnings-per-share more than doubled to AED 0.25, versus AED 0.12 for 2006.
Total assets grew 31 per cent to AED 68 billion compared to AED 52 billion for 2006.
Upstream
• Upstream activity generated revenues of AED 1.4 billion (including gas storage), 17 percent of total revenues and 20% of net profit.
• Total production was 7,252 thousands of barrels of oil equivalent in 2007, split between TAQA Energy (2,120 thousands of barrels of oil equivalent) and TAQA North (5,132 thousands of barrels of oil equivalent).
• Total average daily oil and gas production in 2007 was 19,867 barrels of oil equivalent per day.
• Average net realized price of crude oil sold was US$67.61 per barrel for TAQA North and €48.00 per barrel for TAQA Energy.
• Average net realized price for natural gas sold was US$6.16 per thousand cubic feet for TAQA North and €6.10 per thousand cubic feet for TAQA Energy.
• Drilling success rate of 92.9% for TAQA North.
• 13 successful completions for TAQA North.
• Results represent significant growth, even though the full impact of TAQA’s acquisitions in 2007 has yet to be seen.
Downstream
• Downstream activities generated revenues of AED 6.7 billion in 2007, comprising 81 per cent of total revenues in 2007, and 80% of profit.
• TAQA’s downstream capability now represents total global generation capacity (gross) of 9,423 Mega Watts. During 2007, total power production ran to 48,229 Giga-Watt hour.
• TAQA’s total water desalination in 2007 was 182,382 million Imperial gallons, with an installed capacity of 594 million Imperial gallons per day.
• Power and water in the UAE accounted for a total of 57% of the total revenue, with non-UAE assets accounting for a further 25.6% of the revenue.
• Technical availability of power generation businesses averaged 89% with an average capacity of 71%.
Comment
Peter Barker-Homek, Chief Executive Officer of TAQA, said:
“2007 was a pivotal year for TAQA as we built from our domestic power generation and desalination base, to a truly global energy company with operations in nine countries. Over the past twelve months we have diversified our business and expanded our footprint across the Middle East, Europe and North America with the acquisition of quality energy assets. I am pleased to confirm we remain on track to reach our aim of US$ 60 billion worth of assets by year-end 2012.
“Integration has been a key focus for us throughout the year, as we have moved to quickly and efficiently to align processes, reporting and management across TAQA globally. We have simultaneously retained tight control on our costs and are proud to report a net profit of AED 1 billion for the year. During a period of great change for TAQA we have maintained a very respectable EBITDA margin of 62%, while doubling our earnings per share. While income from acquisitions has contributed to this increase, it is also balanced by organic revenue growth in our existing portfolio.
“We look forward to continued growth in 2008 as TAQA continues to integrate its acquisitions and further develop our positioning as a global energy company.”
