TAQA's nine month profit increases 318%, approaching Dhs1.6bn

Net profit after minority interests increased 318%, reaching Dhs1.6bn in the first nine months of 2008 compared with Dhs381m in the same period in 2007.

Basic earnings-per-share reached 35 fils for the first nine months of 2008, compared with 9 fils for the same period in 2007.

EBITDA increased by 144% to Dhs8.3bn for the first nine months of 2008, compared with Dhs3.4bn for the same period in 2007.

Total revenues were Dhs13.1bn for the first nine months of 2008, an increase of 145% when compared with total revenues of Dhs5.3bn for the corresponding period in 2007.

Oil and gas revenues for the nine months ended 30 September 2008 reached Dhs6.2bn, compared with Dhs462m for the first nine months of 2007.

This increase was driven primarily by the revenues from TAQA North of Dhs4.8bn comprised of the full consolidation of all three TAQA acquisitions in Canada, compared with 2007 which only included revenues from TAQA Bratani and TAQA's Northrock acquisition from 15 August 2007.

Total revenues from the sale of electricity and water were Dhs4.0bn for the nine months ended 30 September 2008, compared with revenues of Dhs3.4bn for the nine months ended 30 September 2007.

When comparing the periods under review, the revenue of Dhs874m from TAQA Generation during 2008 compares with Dhs479m for the five month post-acquisition period in 2007.

Gas storage revenues for the period ended 30 September 2008 were Dhs391m compared with Dhs106m for the same period in 2007.

This increase was attributable to revenues from East Cantaur, part of TAQA North, which was not included in the first nine months of 2007.

Finance costs were Dhs2.8bn for the nine months ended 30 September 2008, an increase of 58% when compared with finance costs of Dhs1.8bn for the nine months ended 30 September 2007 as a result of costs related to acquisitions and on new bonds of $1.5bn issued in July 2008.

As at 30 September 2008 TAQA's total assets were Dhs85.4bn, compared with Dhs67.8bn at 31 December 2007.

Peter Barker-Homek, Chief Executive Officer of TAQA, said:

"The past quarter has seen TAQA consolidating its position across its core target markets, while continuing to monitor global opportunities for further acquisitions. Today's results are testament to the benefits of our diversification strategy. While revenues during the third quarter derived from oil and gas were dampened by lower average commodity prices, the growing strength of our midstream and downstream portfolio has acted to mitigate this. The positive impact of the acquisitions we have made is directly visible in our bottom line. As I look forward into 2009, we are well financed. Equipped with extensive available credit facilities, we do not have any short term refinancing needs. As a result, our strategic plan remains unaffected by recent events in financial markets and we continue to build a strong operational track record of which I am immensely proud."

"Our team continues to drive the integration of the assets we have acquired, delivering high performance and maintaining our commitment to the highest standards of health and safety and environmental stewardship. This operational excellence will continue to play a crucial part in our ability to deliver sustainable business growth that takes into account all risk factors." he added.