Falling oil and gas prices helped to push net profit at Abu Dhabi National Energy Co (TAQA) down 90 percent to 40 million dirhams ($10.89 million) in the first quarter, the company said on Thursday.
Oil and gas revenues fell 13 percent to 1.62 billion dirhams 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 company increased revenue from the sale of electricity and water by 14 percent to 1.39 billion dirhams.
Its shares were down 5.7 percent at 1.66 dirhams at 0635 GMT. 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 174 million dirhams in revenue that TAQA realised from the repurchase of bonds, while tax expenses fell off dramatically, to 6 million dirhams from 241 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 398 million dirhams. Shares in the company have fallen 58 percent from their 12-month high in June, 2008.