Abu Dhabi National Energy Company (Taqa) registered a 26 per cent drop in its net profit to Dh752 million ($204.7 million) in 2011, from Dh1.01 billion the year before, mainly due to an impairment charge and UK taxes.

Taqa, a global energy company majority owned by the Abu Dhabi government, said the company had recorded a strong top line performance with a 14 per cent jump in revenues due to higher oil prices, plus growth in its power and water portfolio.

The company said its gross profit surged 20 per cent to hit Dh8.55 billion in 2011 compared to Dh7.15 billion the year before despite an impairment charge taken in North America.

The basic earnings per share decreased from 17 fils to 12 fils. Total assets decreased by one per cent to reach Dh114.8 billion in 2011, said the Abu Dhabi firm in a statement.

The decline in total assets and net profit was partially due to a one-off impairment charge at Taqa North, following the annual revaluation of Taqa's portfolio.

According to Taqa, the net impairment charge of Dh528 million, or 8 fils per share, reflects an impairment of Dh706 million, offset by a deferred tax benefit of Dh178 million.

Commenting on the results, CEO Carl Sheldon said, 'Taqa’s performance during 2011 is evidence of our operational maturity and our ability to identify new, exciting opportunities for growth.'

'Across every aspect of our business we have continued to focus on driving these efficiencies while harnessing the opportunities our portfolio offers,' remarked Sheldon.

'An excellent example of this is the Falcon Field in the UK North Sea, which we identified and brought on-stream within two years, a record for the region, adding new production to our Oil & Gas portfolio,' he said.

According to Sheldon, the profits were affected by additional taxes on UK oil and gas producing companies which came into effect on March 24, 2011.

'The income tax expense for the UK was Dh1.58 billion higher in 2011, compared with 2010,' he pointed out.

On the future plans, Sheldon said, “While financial performance was ultimately dampened by external factors beyond our control, our vigorous focus on costs and our proven ability to exploit opportunities, combined with the steps we have already taken to secure our future growth and financing, position Taqa for a strong start to 2012.”-TradeArabia News Service