Abu Dhabi National Energy Company (TAQA) saw its second quarter profit attributable to shareholders fall 16.8% year-on-year to $523.6 million. The results were in line with analyst estimates.
Revenue for the quarter rose slightly to $3.7 billion, up from $3.5 billion a year earlier. However, revenue from TAQA's oil and gas unit declined nearly 13% to $623.5 million.
The profit drop was driven by falling energy prices and lower production. Brent crude prices decreased 25% in the first half of 2023 versus the same period last year. TAQA's average oil and gas output fell 6% to 117,000 barrels of oil equivalent per day, hurt by closure of its Iraq operations and natural decline at UK fields.
While first half net income saw a large 215.1% increase to $3.7 billion, this was largely due to a one-time gain related to an ADNOC Gas stake acquisition. Excluding one-offs, profit was down 9% for January-June 2023.
TAQA approved an interim dividend of $0.021 per share for Q2, totaling $199.02 million. Chairman Mohamed Alsuwaidi noted the company had exceeded its 2030 renewable target through growth at Masdar. Several other Gulf energy firms also posted Q2 profit declines on lower oil prices.
