The following TAQA-related news might be of interest to people who gamble on “good news” without knowing what the hell is really going on in the world.
Also of interest is the fact that the current TAQA 52 week high (all-time high as well) is 4.22 dirhams per share. The stock has traded above the 4 level as recently as June 10th this year.
The stock dramatically presaged the collapse of crude oil prices the way stocks of oil and oil-field companies in the U.S. and other markets saw dramatic declines before July. TAQA shares crashed about 35% from the June highs to early July, before the North Sea fields news was publicised. Interestingly, TAQA shares bounced before crashing in sync with the price of crude oil since July around the time of the North Sea news.
Shares are trading at 52 week lows and all-time lows of about 1.2 these days.
Taqa is a U.A.E. company “established from the Abu Dhabi power company, and 75 per cent owned by the emirate’s government, [and] it plans to acquire $60bn in energy assets around the world by 2012.”
Back in July this year, the power company bought these ageing “unwanted” oil fields from Shell and Exxon when the price of oil was still hovering around all-time highs of about 145 dollars per barrel.
Surely Taqa will use the expensive expertise of companies such as Halliburton and Schumberger to work these oil fields, which are past their expiration date.
Good luck over the next 2 years while oil prices remain depressed. Oil is due a technical bounce to about 90-100 dollars, but still…
Markets usually know better…
