taqa q3 2007 financial results
The Abu Dhabi National Energy Company PJSC, a publicly listed company on the Abu Dhabi Securities Market (ADSM: TAQA), today reported strong financial results for the third quarter of the year ending 30 September 2007.
Key highlights of the results for Q3 2007:
Total revenue reached AED 2.45 billion compared with AED 874.9 million for the same period in 2006, an increase of 181 per cent.
o Revenue from the electricity and water business grew by 35 per cent to AED 1.2 billion, from AED 874 million 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 334 million (there is no comparable like-for-like figure in 2006). This figure includes gas storage revenue.
EBITDA of AED 1.3 billion for Q307, giving an EBITDA margin of 52 per cent versus EBITDA of AED 585 million and a margin of 66 per cent in the same period in 2006. EBITDA margin for 2007 excluding supplementary fuel would be 85 percent.
Finance costs increased from AED 296 million to AED 644 million, to fund acquisitions.
Net profit grew 172 per cent to AED 215.7 million compared to 79.4 million in the same quarter in 2006.
Basic earnings-per-share rose 50 per cent to AED 0.03 for the quarter.
Key highlights of the results for the first nine months of 2007:
Revenue of AED 5.3 billion, an increase of 123 per cent from AED 2.4 billion in the same period in 2006.
o Revenue from the electricity and water business grew by 45 per cent to AED 3.4 billion, from AED 2.4 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 the oil and gas businesses accounted for AED 567.6 million (there is no comparable like-for-like figure in 2006). This figure includes gas storage revenue.
EBITDA of AED 3.42 billion, giving an EBITDA margin of 65 per cent, versus EBITDA of AED 1.9 billion and a margin of 80 per cent in the same period in 2006. EBITDA margin for 2007 excluding supplementary fuel would be 85 percent.
Finance costs increased from AED 879 million to AED 1.8 billion, to fund acquisitions.
Net profit grew 56 per cent to AED 587 million compared to AED 375 million in the same period for 2006.
Basic earnings-per-share grew to AED 0.09 for the period vs AED 0.06 in the same period in 2006.
Total assets grew 86.2 per cent to AED 60.9 billion compared to AED 32.7 billion in the same period for 2006.
Acquisitions during the period
The Canadian market has been the key focus of the Company’s expansion plans for the quarter. The focus has been on long-life, stable assets in the form of Canada’s oil and gas sector. Once closed, these transactions will make TAQA one of the top 14 oil and gas producers in Canada:
In August, TAQA acquired 100 per cent of Northrock Resources Ltd., a Canadian oil and gas exploration company with operations in the Western Canadian Sedimentary Basin for a total purchase price of US$2 billion. This has now been renamed TAQA North.
In August, TAQA announced a US$540 million share purchase agreement with Pioneer Canada. Pioneer Canada is an oil and gas exploration and production company with operations in the Western Canadian Sedimentary Basin. The transaction is subject to regulatory and third party consents and is expected to be completed in the fourth quarter of 2007.
In September, TAQA North announced the acquisition of PrimeWest Energy Trust, a Calgary-based conventional oil and gas royalty trust. The total value of the transaction was approximately Cdn.$5 billion. The transaction is subject to regulatory and shareholder consents and is expected to be completed in the fourth quarter of 2007 or first quarter of 2008.
Comment
Peter Barker-Homek, Chief Executive Officer of TAQA, said:
“Our business is changing significantly and our investment view is now a global one. A year ago, TAQA’s revenues were primarily derived from water and power generation in the UAE. Today, we are also reporting substantial growth in oil and gas revenues further to our expansion into the Netherlands and Canada. This financial and operational diversification across the value chain is key to our five year strategy of becoming a major global energy company.
“TAQA does have an appetite for acquisitions and scale is important to us, however, as today’s results demonstrate, this is being balanced with strong organic growth from our existing portfolio.”
“The operational and financial growth we have experienced during the third quarter of 2007, underpinned by assets with strong cash flows, is also testament to the strength of the management team we now have in place. Acquisitions are being integrated successfully, with no real business disruption.”
