Abu Dhabi National Energy Co. (TAQA), the state-controlled utility, reported a second-quarter loss as sales fell because of a cut in U.K. oil output and production halts at two power plants.
The company, known as Taqa, lost 172 million dirhams ($46.8 million) in the period, compared with a 447 million-dirham profit a year earlier, it said in a statement today to the Abu Dhabi stock market. Sales declined 3.1 percent to 5.86 million dirhams. The utility is 75 percent owned by the government of Abu Dhabi, the largest sheikhdom in the United Arab Emirates.
Taqa has stakes in businesses generating power and producing oil and natural gas in the Middle East, North Sea, India and North America. Last year, it expanded by adding oil-field operations in northern Iraq and buying U.K. crude deposits from BP Plc. (BP/)
“The loss was characterized by some short-term operational issues, and the worst is behind us,” Chief Financial Officer Stephen Kersley said today on a conference call. “We forecast a positive outcome for the full year.”
Taqa fell as much as 3.1 percent after the earnings announcement, the biggest decline in trading since June 3. The shares were at 1.26 dirhams, down 2.3 percent, at 10:25 a.m. in Abu Dhabi.
Production is expected to start at the Iraqi field in 2015, while repair work reduced flows at a North Sea oil platform after a leak at the facility, the company said. Taqa said this month it plans to resume output after a shutdown at the North Sea Cormorant Alpha platform, which pumps 10,000 barrels a day of crude. Power plants that stopped producing in the quarter have resumed, Kersley said.
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