Abu Dhabi National Energy Co (Taqa) reported a rise in quarterly profits on Tuesday. The company said it was on track to make capital expenditures of $2.2 billion this year.
The energy and utility firm said net profit rose 2.8 per cent to Dhs447 million ($121.7 million) in the second quarter ended June 30, up from Dhs435 million a year-ago.
“We spent $949 million in the first half, we look to spend $2 to $2.2 billion this year,” Carl Sheldon, Taqa’s chief executive, said on a conference call, without specifying how the money will be spent.
Among Taqa’s ongoing projects are the Bergermeer gas storage facility in which the UAE firm and Dutch state-owned Energie Beheer Nederland BV are investing more than 800 million euros up to 2014.
Taqa, which owns assets across Canada and Europe, is also eyeing investments in Turkey after talks with the Turkish government. “We expect development prospects,” Sheldon said.
North American gas prices have continued to weaken with Henry Hub prices reaching a 10-year low in February 2012, Sheldon said in an earlier statement.
“Prices have since recovered somewhat, but overall gas price weakness has had a significant impact on our North American performance,” he said.
Taqa completed the sale of its position in Tesla Motors for Dhs956 million in April, realising a gain of Dhs415 million, the statement said. Shares in Taqa rose 3.2 per cent on the Abu Dhabi Securities Market at 0850 GMT.
Meanwhile, Abu Dhabi’s benchmark stock index advanced to the highest level in more than four months after Dana Gas and Abu Dhabi National Energy posted higher second-quarter earnings.