Power demand in the UAE was lower in the first half of this year than in the same period last year, the Abu Dhabi National Energy Company said Thursday.
A construction slowdown had caused the drop in electricity consumption, said Peter Barker-Homek, the chief executive of the company also known as Taqa, which runs power plants in the capital.
The disclosure highlights the severe effect of the global financial crisis on the UAE's previously booming residential and commercial property sectors.
In April, the Abu Dhabi Water and Electricity Company (ADWEC) predicted power demand in the country would continue to rise this year, but at a slower rate than the 9 per cent average annual increase experienced in the past five years.
It said slower growth in power requirements for large residential and commercial construction projects and industry would be offset in the short term by higher electricity consumption by the Abu Dhabi National Oil Company, which was pressing ahead with a number of large oil and gas development projects.
ADWEC is a unit of the Abu Dhabi Water and Electricity Authority, the government entity that owns 75 per cent of Taqa.
In March, Nomura, the Japanese investment bank, forecast 7 per cent growth in UAE power demand this year. It said larger annual increases in previous years had been driven by property and population expansion, especially in Dubai.
Thursday, Taqa reported a 71 per cent drop in second-quarter profits due to lower oil and gas prices and higher operating costs.
The company posted net earnings of Dh136 million (US$37m), down from Dh472m in the second quarter last year. Revenues fell 4 per cent to Dh4.38 billion.
The results fell short of analysts' expectations, but were an improvement over the previous quarter, in which Taqa's profit fell 90 per cent compared with the first quarter last year.
"We are now a long way from the lows we saw earlier in the year," said Mr Barker-Homek. "We have seen a welcome strengthening in business performance."
Crude prices have roughly doubled this year, recovering from below $35 per barrel last December to about $70 per barrel.
But in Taqa's worst-performing business segment, its North American oil and gas operations, profits fell 93 per cent even as the company pared operating costs. That reflects extremely low North American gas prices, which have failed to rebound in tandem with oil prices. Canadian gas features heavily in Taqa's North American asset portfolio and is usually the lowest priced gas on the continent.
Profits from Taqa's European oil and gas operations fell just 29 per cent, even though operating costs more than doubled. That followed a major acquisition of North Sea assets from ExxonMobil and Royal Dutch Shell.
Despite falling electricity demand in several countries in which it holds assets, Taqa's power and water operations made the biggest contribution to the company's profits for the quarter, as revenue expanded.
When Taqa was created four years ago, its assets consisted of majority stakes in Abu Dhabi's biggest power and water projects. Since then, it has invested about $25bn internationally in its quest to become an integrated global oil, gas and power company.
However, in the upstream oil and gas sector, Taqa has mainly acquired mature producing assets that require large cash infusions just to maintain output. That has left the company vulnerable to low commodity prices.
Mr Barker-Homek said the company might spend another $1bn on energy assets in North America and Europe during the rest of this year.
On the Abu Dhabi Securities Exchange Thursday, Taqa's stock closed at Dh1.75, up 9 per cent or 14 fils.
* with Reuters
tcarlisle@thenational.ae
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
The specs
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Power: 360bhp
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
Nayanthara: Beyond The Fairy Tale
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Rating: 3.5/5
Secret Pigeon Service: Operation Colomba, Resistance and the Struggle to Liberate Europe
Gordon Corera, Harper Collins
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
UAE currency: the story behind the money in your pockets
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%3Cp%3EThe%20Royal%20Navy%20raid%20is%20the%20latest%20in%20a%20series%20of%20successful%20interceptions%20of%20drugs%20and%20arms%20in%20the%20Gulf%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMay%2011%3A%20%3C%2Fstrong%3EUS%20coastguard%20recovers%20%2480%20million%20heroin%20haul%20from%20fishing%20vessel%20in%20Gulf%20of%20Oman%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMay%208%3A%3C%2Fstrong%3E%20US%20coastguard%20vessel%20USCGC%20Glen%20Harris%20seizes%20heroin%20and%20meth%20worth%20more%20than%20%2430%20million%20from%20a%20fishing%20boat%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMarch%202%3A%3C%2Fstrong%3E%20Anti-tank%20guided%20missiles%20and%20missile%20components%20seized%20by%20HMS%20Lancaster%20from%20a%20small%20boat%20travelling%20from%20Iran%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EOctober%209%2C%202022%3A%20%3C%2Fstrong%3ERoyal%20Navy%20frigate%20HMS%20Montrose%20recovers%20drugs%20worth%20%2417.8%20million%20from%20a%20dhow%20in%20Arabian%20Sea%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESeptember%2027%2C%202022%3A%3C%2Fstrong%3E%20US%20Naval%20Forces%20Central%20Command%20reports%20a%20find%20of%202.4%20tonnes%20of%20heroin%20on%20board%20fishing%20boat%20in%20Gulf%20of%20Oman%C2%A0%3C%2Fp%3E%0A
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
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WIDE%20VIEW
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WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
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Specs
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What went into the film
25 visual effects (VFX) studios
2,150 VFX shots in a film with 2,500 shots
1,000 VFX artists
3,000 technicians
10 Concept artists, 25 3D designers
New sound technology, named 4D SRL
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Manchester United v Liverpool
Premier League, kick off 7.30pm (UAE)
'Shakuntala Devi'
Starring: Vidya Balan, Sanya Malhotra
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MATCH INFO
Uefa Champions League last-16, second leg:
Real Madrid 1 (Asensio 70'), Ajax 4 (Ziyech 7', Neres 18', Tadic 62', Schone 72')
Ajax win 5-3 on aggregate
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.