Optimisation and selective acquisition strategies deliver significantly improved full year profit. Successful refinancing reaffirms strength of financial position.
Abu Dhabi National Energy Company PJSC (“TAQA”), a publicly listed company on the Abu Dhabi Securities Exchange (ADX: TAQA), today reported its preliminary, unaudited financial results for the year ending 31 December 2010.
These preliminary results are subject to changes that may result from the final determination of certain accounting estimates. Comprehensive, audited full year 2010 results are due to be published on 16 March 2011.
Comment
H.E. Abdulla Saif Al-Nuaimi, CEO & MD of TAQA, said:
“2010 has been a year of focus for TAQA and we have, as a result, delivered substantial improvement in financial performance. We have worked hard to harness efficiency and opportunity within our footprint while simultaneously adding to it with valuable and complementary transactions during 2010. The net result is a boost to the bottom line and EPS for the period.
“While the economic environment remains somewhat challenging, the more positive commodity pricing environment resulted in a strong final half to the year. Combined with our rapid and tightly priced completion of necessary refinancing during 2010, we have started 2011 with confidence and conviction.”
Corporate activity during 2010
During the 12 month period, TAQA completed the following corporate initiatives:
March: Moody’s Investors Services downgraded TAQA’s corporate credit rating from Aa2 to A3 (stable). All Abu Dhabi government related issuers were downgraded while the Government stated TAQA "plays an important role in the Emirate’s energy policy."
April: H.E. Abdulla Saif Al-Nuaimi appointed Managing Director & Chief Executive Officer, further strengthening the TAQA management team.
April: TAQA swapped $1.0 billion of its 2013 fixed rate bonds into floating rate to optimize the company’s exposure to floating interest rates.
May: CDN $1.0 billion revolving credit facility secured by TAQA NORTH. This facility replaced the existing CDN $1.325 facility due to expire in 2011.
August: Jan Willem van Hoogstraten appointed as Managing Director of TAQA Energy to manage TAQA’s Netherlands operations.
October: David Cook appointed as Executive Officer and Head of Upstream to lead TAQA’s global upstream division following more than 20 years experience with BP, TNK-BP, and Amoco.
December: ‘A’ rating received from Standard & Poor’s reflecting extensive review of TAQA’s strategy and business plan as well as the expected level of government support from the Emirate of Abu Dhabi.
December: US$ 3.0 billion revolving credit facility secured for general corporate purposes, replacing the existing US$ 3.15 billion revolving credit facility. The facility from 20 banks comprises US$ 2.0 billion in a three year revolving credit tranche and US$ 1.0 billion in a five year revolving tranche.
December: Abu Dhabi Water and Electricity Authority (ADWEA) transferred its 7% ownership stake in Tesla Motors to TAQA.
December: Steven L. Phillips appointed as General Counsel for TAQA’s worldwide corporate activities, based in TAQA’s corporate headquarters in Abu Dhabi, UAE.
In addition to the above, TAQA achieved the following milestones during 2010:
Oil & Gas
July: Approval granted to the Bergermeer Gas Storage project to increase the reservoir pressure from 35 bars to 80 bars, thus increasing the allowable volume of cushion gas in the facility.
August: Completed acquisition of selected Suncor Energy Oil and Gas Partnership assets by TAQA North for a total consideration of CDN $285 million.
August: Agreements signed for the transfer of a 24% stake in the Bergermeer Gas Storage project previously owned by Dyas B.V. and Petro-Canada Netherlands B.V. to TAQA, taking TAQA’s ownership of the project from 36% to 60%.
September: Signed a Sale and Purchase Agreement (SPA) relating to TOTAL’s entire equity stake of 81% in production licences for two blocks in the UK North Sea, with the potential to add approximately 8,000 boe/day.
October: TAQA awarded three licences in the UK North Sea from the UK’s Department of Energy and Climate Change (DECC).
November: Crude oil production was successfully started from the Rijn field offshore the Netherlands, which TAQA acquired in 2007. TAQA applied recent advances in technology to restart the Rijn field, 12 years after being shut down.
Power & Water
June: Agreement signed with the Abu Dhabi Water and Electricity Authority (ADWEA) for the transfer of a 40% stake in Sohar Aluminium Company.
July: ADWEA transferred 90% of its interest in the Fujairah 2 power and water plant to TAQA, giving TAQA a 54% interest in the facility. Fujairah 2 achieved full completion in January 2011.
December: ADWEA transferred 90% of its ownership interest in the Shuweihat 2 power and water plant to TAQA, giving TAQA a 54% interest in the facility. The plant is currently under construction and expected to be commissioned by the end of 2011.
Post-period items
January 2011: Disposal of Marubeni TAQA Caribbean assets in line with strategy to focus on developing TAQA’s power and water footprint in the greater MENA region.
