ABU DHABI, Aug 13 (Reuters) - Abu Dhabi National Energy Company (Taqa) reported a 71 percent drop in second-quarter profit on Thursday, citing lower oil prices and higher operating costs.
Government-run Taqa posted profit of 136 million UAE dirhams ($37.04 million) in the quarter ended June 30, down 71.2 percent from 471.4 million dirhams in the prior-year period.
The results fell short of two analysts estimates who forecast earnings of 348 million dirhams and 289 million dirhams, in a Reuters survey. Taqa cited the sharp decline in oil price -- U.S. crude was at $95 a barrel in early April 2008, while Brent crude hovered at $96 -- for the slump in earnings.
Oil prices peaked at a record $147 in July 2008 before tumbling to around $32 a barrel by December.
Taqa said higher cost of sales linked to acquisitions it made last year also weighed on profits.
"As the oil price has improved from its lowest point, our second quarter performance has shown an improvement in comparison to the first three months of the year," Taqa chief executive Peter Barker-Homek said in a statement.
Revenues declined 4 percent to 4.4 billion dirhams, down from 4.6 billion dirhams.
The company said oil and gas revenues dropped 30 percent while revenues from its electricity and water business rose 14 percent.
Total production was 138,200 barrels of oil equivalent per day in the second quarter, up from 119,200 barrels in the second quarter of 2008.
Taqa, which took control of operations of the North Sea Brent crude system earlier this month, has acquired assets worth more than $2 billion in the North Sea and made acquisitions in Canada. ($1=3.672 UAE Dirhams) (Reporting by Stanley Carvalho; Editing by Jon Loades-Carter)