Abu Dhabi National Energy Co. said it will retain the vast majority of its oil and natural gas assets following a review, citing the strong contribution of those businesses to earnings.
The company spent more than a year mulling whether to sell the assets and its decision not to comes after a surge in oil and gas prices following Russia’s attack on Ukraine. Brent crude is up 45% in 2022 to around $113 a barrel, leading to a windfall for owners of oil-producing assets.
Oil and gas contributed 15% to revenue and earnings in 2021, Taqa said, adding that the trend had continued into this year.
The state-owned utility will continue to seek a buyer for its upstream assets in the Netherlands, given their relatively small contribution to the business, it said in a statement on Tuesday.
Taqa also has gas operations in Canada, and runs oil fields in the North Sea and in the Kurdish region of Iraq.
“Our strategy remains to be a champion for low carbon power and water for Abu Dhabi and beyond and to continue to improve and expand our utility businesses, with a clear focus on renewables,” Chief Executive Officer Jasim Husain Thabet said.
“As such, we remain committed to becoming a net zero company by 2050.”