Abu Dhabi National Energy Company PJSC (“TAQA”), a publicly listed company on the Abu Dhabi Securities Exchange (ADX: TAQA), today reported its operational and financial results for the third quarter and the nine months to 30 September 2012.

Executive Summary
The global economy continued to be volatile in the third quarter, particularly with respect to commodity prices. Both Brent and WTI crude oil saw softening compared with the same period last year and North American natural gas prices were 40% lower, though some improvement has been seen post period.

TAQA’s nine month results demonstrated the resilience of its global portfolio with a strong performance from Power & Water helping to ease the effect of weaker commodity prices – particularly in North America.

Power & Water delivered a solid operational performance, with forced outage rates at Shuweihat 2 and Jorf Lasfar, in particular, well below best in class worldwide standards.

Oil & Gas had mixed results, with a solid performance from the UK and Dutch entities, although North America continued to show weak results.

TAQA has taken a number of actions to position its North American portfolio to weather the low part of the cycle:
Firstly, Ed LaFehr was appointed President and he brings a wealth of regional experience

Secondly, TAQA will continue to review its portfolio, either to monetise non-core acreage or, where valuations are low, acquire acreage and production in core areas.

Thirdly, TAQA will continue to evaluate the economics of its on-going operations and future capital programme: year to date approximately 1,500 boe/d of unprofitable production has been shut-in. Additionally, the 2013 capital programme has been reduced by 30% compared with 2012, subject to approval from the Board of Directors in December.

Finally, the business will be subject to continuous cost review to ensure it maximises the efficiency of its operational costs and overhead.

In terms of liquidity, TAQA is well positioned for the future, with approximately AED 18 billion in cash and unused credit facilities at the end of the third quarter. TAQA recently launched the syndication of the refinancing of its $2 billion revolving credit, which has been well received in the market.

Looking forward, TAQA is well positioned for growth, with the following post-period developments:
In October, the Government of the Republic of Turkey and the Government of the Emirate of Abu Dhabi signed a joint declaration regarding investment in power generation and mining in southern Turkey.

In the Kingdom of Saudi Arabia, TAQA, along with consortium partners, submitted the lowest tariff proposal for the development of the 2,000 MW Rabigh 2 plant.

TAQA announced the discovery of a new oil accumulation in the UK Northern North Sea Contender Block that is expected to correspond to 10-30 million barrels of oil in place. 

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