Taqa Doubles Net as North Sea Cormorant Alpha Oilfield Restarts

Abu Dhabi National Energy Co., which produces power, crude oil and natural gas from Canada to North Africa, more than doubled first-quarter profit as a North Sea oilfield returned to production after maintenance.

First-quarter net income rose to 274 million dirhams ($74.6 million) from 106 million dirhams a year earlier, the government-controlled utility known as Taqa said today in a statement. Sales rose 34 percent to 7.26 billion dirhams.

“Our first-quarter result was helped by the restoration of North Sea oil production at Cormorant Alpha and higher natural gas prices in North America,” Chief Financial Officer Stephen Kersley said in the statement.

Taqa had shut the Cormorant Alpha offshore platform in January 2013 after a leak and didn’t return it to full capacity until August. The company expanded this year by adding two hydroelectric power plants in India and last year took over oilfield operations in northern Iraq and crude oil and gas deposits in the U.K. from BP Plc.

The shares fell 0.8 percent to 1.27 dirhams as of 12:39 p.m. in Abu Dhabi. The stock has declined 12 percent this year, compared with a 17 percent gain in the benchmark ADX General Index.

Taqa said in March it was taking a 3.25 billion-dirham impairment on earnings that pushed the company to a full-year loss. Kersley said at the time the writedown was mainly linked to reserve revisions and lower output expected in North America, where lower gas prices wouldn’t allow the company to meet its profit expectations for some assets there.

Revenue from the company’s oil and gas businesses rose 65 percent to 3.96 billion dirhams as hydrocarbon production was stable in North America and North Sea output more than doubled to 62,900 barrels of oil equivalent a day.

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