Falling oil and gas prices helped to push net profit at Abu Dhabi National Energy Company (Taqa), a leading energy investment company, down 90 per cent to Dh40 million ($10.89 million) in the first quarter, the company said.

Oil and gas revenues fell 13 per cent to Dh1.62 billion due to a decline in realised prices and changing exchange rates, the government-run company said in a statement on the Abu Dhabi bourse website.

By contrast, the total revenue reached Dh4.2 billion ($1.14 billion) compared with Dh4.0 billion for the same period in 2008, an increase of 5 per cent. Also, the company increased revenue from the sale of electricity and water by 14 percent to Dh1.39 billion.

Its shares were down 5.7 per cent at Dh1.66 at 0635 GMT today.

Taqa has expanded its global footprint as an energy investment company with a diversified portfolio of energy activities, earlier this month winning a $1.22 billion deal to build two power stations in Morocco.

The profit decline was mitigated by Dh174 million in revenue that Taqa realised from the repurchase of bonds, while tax expenses fell off dramatically, to Dh6 million from Dh241 million a year earlier, the company said.

Taqa told shareholders in a note that there had been a 'pause in the spectacular results' but it was optimistic for a global economic recovery before year-end and that it would deliver profitable growth.

The first-quarter net profit attributable to shareholders in 2008 was Dh398 million.

Shares in the company have fallen 58 per cent from their 12-month high in June, 2008. – Reuters