Abu Dhabi National Energy Co. (TAQA), the state-run utility known as Taqa, said second-quarter profit more than doubled as oil and gas sales increased. Taqa shares rallied 6.8 percent, poised for the biggest gain since December 2009, after the company said net income rose to 435 million dirhams ($118 million) from 171 million dirhams a year before. Sales increased 38 percent to 7.07 billion dirhams as revenue from oil and gas advanced 45 percent to 2.73 billion dirhams, Taqa said in a statement on the Abu Dhabi bourse. “During the quarter, steady production in our oil and gas business has enabled Taqa to capture the benefits of a higher commodity price environment, while carefully controlling operational expenditure,” Chief Financial Officer Stephen Kersley said in the statement. “This was supported by higher contributions from the power and water business.” Taqa, which owns stakes in oil, gas and power assets in the Middle East, North America, the North Sea and India, benefited from a 47 percent gain in oil prices to an average of $116.99 a barrel for Brent crude futures in the second quarter. Oil and gas output from its North Sea fields increased, taking total production to 135,000 barrels a day of oil equivalent. Output will stay in the range of 135,000 to 146,000 barrels a day for the rest of the year, General Manager Carl Sheldon said on a call with reporters today. Power Capacity The company reported a 13 percent gain in power and water sales to 1.8 billion dirhams as a 2,000-megawatt plant in Fujairah in the United Arab Emirates started operations in January. Total power generation capacity rose 10 percent to 16,334 megawatts, making Taqa the sixth-largest global independent power producer, it said. The shares gained as much as 8 fils to 1.25 dirhams, and traded 2.6 percent higher at 1.2 dirhams at 11:24 a.m. in Abu Dhabi. The stock has lost 19 percent this year, compared with a 4.4 percent decline in the benchmark ADX General Index. The company is “looking extensively” at the ringgit market for a potential bond sale, Kersley said on the call. The company plans to invest $2 billion every year through 2013 and has no need to refinance until October 2012, he said. Taqa spent $920 million in the first half of the year, he said. Taqa’s Bergermeer underground gas storage project in the Netherlands has been temporarily suspended by the Dutch Council of State pending a review of objections by parties including local authorities, it said Aug. 8. It signed an agreement in Jyoti Structures Ltd. in India on July 21 to double its existing 250-megawatt plant in Neyveli, the statement today said. Sheldon is overseeing operations after Abdulla Saif Al Nuaimi left his position as chief executive officer, the company said in June. Taqa hired Kersley, former vice president of finance at Royal Dutch Shell Plc, as chief financial officer, replacing Doug Fraser. Abu Dhabi Water and Electricity Authority owns 51 percent of Taqa. To contact the reporter on this story: Ayesha Daya in Dubai at adaya1@bloomberg.net; To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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