DUBAI, (Reuters) – Abu Dhabi National Energy Co (TAQA) said first-quarter profit rose more than sevenfold on the back of higher oil prices, helping boost shares in the state-owned company on Wednesday.
TAQA also said it would end up owning 54 percent of the $2 billion Shuweihat 2 water and power project following a transfer of Abu Dhabi Water and Electricity Authority’s (ADWEA) 90 percent stake in Ruwais Power Holding.
Ruwais Power Holding owns 60 percent of Ruwais Power Co which owns the Shuweihat plant, TAQA said in a statement.
Shuweihat 2, Abu Dhabi’s eighth independent water and power project (IWPP), was estimated to cost 10 billion UAE dirhams ($2.7 billion). Abu Dhabi sealed a $2.15 billion long-term financing deal for the project last year.
Funding for the project is by a 80:20 debt-equity split. TAQA said its contribution to the equity portion of the funding would be in the range of $250-$300 million.
The 1,500 megawatt natural gas-powered plant and 100 million gallons a day desalination facility is due for completion in 2011. TAQA expected the share transfer to be completed in 2010.
Its shares were up 4.4 percent at 0920 GMT.
Q1 PROFIT SURGES
TAQA posted a first-quarter profit attributable to shareholders of 287 million dirhams ($78 million). First-quarter revenue rose 12 percent to 4.78 billion dirhams.
Total profit for the first quarter stood at 440 million dirhams. WTI crude prices stood $78.88 per barrel during the first-quarter from $43.31 a barrel in the 2009 period, TAQA said.
“TAQA benefited from an increase in commodity prices which resulted in a 38 percent year-on-year increase in upstream and midstream revenues in the quarter,” it said.
In March, TAQA said it planned to spend $1.4 billion on five capital projects this year as it shifts its focus from acquisitions to internal growth.
“We are still in budget with that capital spending plan,” general manager Carl Sheldon said.
The company also said it was in talks with Canadian banks to refinance a C$1.3 billion ($1.3 billion) revolving credit facility of which C$1 billion has already been drawn.