Abu Dhabi National Energy Company (Taqa) has announced that its net income has witnessed a slump of 70% in the second quarter due to lower oil and gas prices. Taqa's net earnings plunged to Dh136 million in the second quarter of 2009, from Dh472 million in the second quarter of fiscal 2008.

Company's total revenue declined by 4.5%, from Dh4.6 billion to Dh4.4 billion, during the period under review. However, company's earnings from electricity and water business surged by 14% from Dh1.4 billion to Dh1.6 billion in the same period.

Revenue from oil and gas activities, including gas storage and other revenues, have witnessed a dip of 30% to Dh1.8 billion from about Dh2.5 billion as a result of lower net realised oil and gas prices.

Cost of sales climbed 34% to Dh3.2 billion from Dh2.4 billion mainly because of operating costs related to the northern North Sea assets acquired in December last year. Administrative and other expenses dipped by 27% to Dh184 million from Dh251 million.

The sources informed that during the first half of fiscal 2009, Taqa's net income tumbled by around 80% to Dh176 million from Dh869 million in the first half of 2008.

But Taqa's total revenues were unchanged at nearly Dh8.6 billion, with electricity and water earnings surged by around 14% per cent to Dh2.9 billion from Dh2.6 billion. Income from oil and gas plunged by 22% to Dh3.6 billion from Dh4.6 billion because of lower prices and devaluation of the Canadian dollar and the euro against the UAE dirham. Taqa, which is 75 per cent owned by Abu Dhabi government, was established in June 2005, with its capital standing at Dh6.225 billion at the end of fiscal 2008.

As per reports in media, the conglomerate is targeting an asset portfolio of $60 billion within 10 years.