While net income increased to $46.6 million from $37
million a year earlier, foreign exchange witnessed a gain of $31.57 million
after a loss of $30.5 million during the corresponding period in 2009.
Taqa's revenue rose 17 percent to $1.39 billion from
$1.19 billion a year earlier as increase in commodity prices helped the company
offset lower production.
"Total revenues have continued the upward trend
which commenced at the end of 2009, benefiting from a more positive commodity
pricing environment," said Chief Executive Officer Abdulla Saif Al-Nuaimi,
"This context, combined with incremental earnings
from the Sohar acquisition, resulted in a significant improvement to net profit
over the period," he added.
Taqa — which owns assets in oil and gas production and
power generation in the Middle East, North America, the North Sea and India —
bought 40 percent of Sohar Aluminium Company. of Oman in June and part of
Suncor Energy's assets in Alberta, Canada, for $278 million.
Al-Nuaimi, who was appointed in April to replace Peter
Barker-Homek who left last year after the company made nearly a dozen
acquisitions in three years, reiterated the company's vow to spend $1.4 billion
this year on developing assets.
"We remain opportunistic and open to bolt-on
acquisitions that consolidate our geographic footprint, fit with our core
competencies and offer potential to increase financial returns," Al-Nuaimi
said.
However, Taqa's General Manager Carl Sheldon said no
further acquisitions are planned for the year.
"We're not expecting there to be anything else
happening on the acquisitions front for the rest of the year, Sheldon said.
"The acquisitions we have made were financed with internally-generated
funds."
In May, Sheldon said Taqa is seeking to sell no more than
10 percent of its oil and gas assets in Canada to raise cash to invest in local
output. The company's total assets were put at $25 billion in June.
The expansion of Taweelah A1, which was commissioned at
the end of the second quarter of 2009, helped the company increase its
quarterly revenues from the sale of electricity and water by three per cent
on-year to $435.58 million.
Upstream and midstream revenues in the second quarter
were put at $544.48 million, an increase of more than $54 million compared to $490 million in the second
quarter of 2009, said Taqa, which is rated A3 with a stable outlook by ratings
agency Moody's.
Taqa's total oil and gas production fell in the second
quarter to 127,500 barrels of oil equivalent a day from 138,200 barrels of oil
equivalent in the corresponding period a year ago, largely due to maintenance
at the firm's UK North Sea assets and reduced 2009 drilling activity in Canada
in response to low North American gas prices, the company said.
