Taqa confirmed record oil and gas production levels as it announced a return to profit today.
Abu Dhabi National Energy Co, known as Taqa, recorded a net profit of AED 513million for the first half of the year. Its oil and gas production averaged out to 158,000 boe/d. The figure is a 24% increase against the same period last year.
The firm credited the integration of its new Central North Sea assets for the bumper boost. Taqa’s UK operations increased 50% year-on-year with an average production rate of 61,500 boe/d.
The results signal a rebound year for the state-controlled utility, which last year recorded devastating losses.
In April, Taqa successfully refinanced its $1.2billion bond. The firm confirmed it will leverage its improved operational cash flow and asset sales to pay its 2016 maturities. It also has no plans to return to the bond market until at least 2017.
Edward LaFehr, chief operating officer, said: “We have seen a great performance during the first half. Record oil and gas production and strong prices have driven our EBITDA to its highest levels. We are starting to see the results of our focused strategy bearing fruit, with safety and operational excellence at the core of everything we do. Greater efficiencies and cost control, combined with a conservative view on growth projects and acquisitions, will ensure we can deliver our commitment to reduce debt and improve financial performance.”
Elsewhere, Taqa started preliminary commercial operations at its Bergermeer gas storage facility in the Netherlands in April. The site, which is due for completion in 2015, will play a major role in securing Europe’s energy supply, according the company.
Earlier this week Taqa was forced to suspend its operations at the Atush Block due to rising tensions and uncertainty in the Kurdistan Region of Iraq. However, the block is still scheduled to start producing 30,000 barrels of oil per day in 2015.
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