June 24 (Bloomberg) -- Abu Dhabi National Energy Co., the state-controlled power and oil producer known as Taqa, fell the most in 17 months after crude oil extended its drop last week.
The shares plunged 6.3 percent, the biggest slump since January 2011, to 1.20 dirhams at the 2 p.m. close in the emirate. The benchmark ADX General Index fell 1.1 percent. Oil prices retreated 5.1 percent last week to $79.76 a barrel in New York, extending this year’s losses to 19 percent.
“The continued fall in oil prices will squeeze Taqa’s profit margin late in the second quarter,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities.
Oil, which has dropped this year amid a deepening debt crisis in Europe, may also decline this week on signals global economic growth is slowing and as U.S. inventories increase, a Bloomberg survey showed. Taqa, founded in 2005, owns stakes in businesses that generate power or produce oil and natural gas in the Middle East, North America, the North Sea and India.
Gulf Arab oil exporters, including the United Arab Emirates and Saudi Arabia, supply about a fifth of the world’s oil. Two analysts recommend investors buy the shares of Taqa.
Taqa said May 10 its first-quarter profit more than tripled. Sales from oil and gas were almost unchanged at 2.9 billion dirhams ($790 million) amid higher oil prices and weak natural-gas prices, it said at the time. The company may report second-quarter results on Aug. 8, according to data compiled by Bloomberg.
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