Taqa's earnings growth accelerates following oil-price recovery

DUBAI (Bloomberg) -- Abu Dhabi National Energy Co. reported an almost fivefold jump in profit after crude prices climbed.

Net income rose to 168 million dirhams ($45.7 million) in the second quarter, from 35 million dirhams a year earlier, the state-controlled oil and gas producer said Thursday. That shows Taqa’s return to growth is accelerating, following a 43% increase in year-on-year earnings in the first quarter.

The Emirati company is among energy producers around the world reporting a change in fortunes after crude prices recovered from a three-year slump. Though Taqa’s oil and gas output dropped 10% to 117,389 boed last quarter, revenue held steady at 4.3 billion dirhams.

“The oil and gas business in Europe is benefiting from higher oil prices which has more than offset the natural decline in production, and Taqa continues work to extend the lifespan of its assets,” Chief Operating Officer Saeed Hamad Al Dhaheri said in a statement.

The company, which increased capital investment in late 2017 and early 2018 to bring new production on stream, also benefits from diversification through a growing power-generation business.

“We intend to deploy our deep international expertise on new initiatives, with a focus on power, where we expect strong demand in the coming years, especially in the Middle East and North Africa region,” Chairman Saeed Mubarak Al-Hajeri said in the statement.