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By Stanley Carvalho
ABU DHABI, May 11 (Reuters) - Abu Dhabi National Energy Co (TAQA), which got a financial lifeline from its top shareholder last month, swung to its first profit in two years due to higher commodity prices, driving its shares up on Thursday.
Shares of the loss-making, state-controlled oil explorer and power supplier jumped 12 5 percent by noon on the Abu Dhabi Securities Market (ADX).
Last month the Abu Dhabi Water & Electricity Authority (Adwea) raised its stake in the firm to 74 percent from 52.38 percent after granting TAQA land valued at 18.7 billion dirhams that could potentially offset accumulated losses. .
TAQA, made a net profit attributable to equity holders of 77 million dirhams ($20.9 million) in the three months to March 31, compared to a net loss of 608 million dirhams a year ago, a company statement said.
Revenues rose to 4.1 billion dirhams, up 6 percent, mainly due to higher oil and gas prices.
But production volumes of 132,200 barrels of oil equivalent per day (boed) were 14 percent lower versus the same quarter last year, the statement said.
TAQA made a loss of 18.55 billion dirhams in 2016 and has cut 1,400 jobs since 2014, bringing the headcount down to 2,200.
TAQA, which has operations in India, Iraq, The Netherlands and North America, might also sell some of its oil and gas interests in North America to raise capital for its core business. .
“The transformative cost reduction initiatives are now sustainably embedded across the organisation and with the balance sheet stabilised, we are now well positioned to secure future growth as market conditions stabilise and improve,” Saeed al Dhaheri, acting chief operating officer, said in the statement. ($1 = 3.6720 UAE Dirham) (Reporting By Stanley Carvalho, editing by John Stonestreet)