(MENAFN- Khaleej Times)Abu Dhabi National Energy Company or Taqa has slashed its oil and gas headcount by 22 per cent since 1 July last year when oil prices started plunging while the size of its Abu Dhabi Headquarter is smarter by 32 per cent.
The move realised significant cost reductions and strong operational performance partially mitigated the impact of a lowering oil and gas prices. Oil producers are cutting costs after Brent crude slumped 48 per cent last year and is down another 13 per cent this year. Brent crude dropped 54 cents to $50.48 a barrel on Wednesday on a glut like situation as Iran output rose 3600 bpd to 2.8 million bpd. "While the current commodity price environment has impacted the whole industry our results show that we are delivering on our accelerated cost transformation programme" said Edward LaFehr Taqa chief operating officer. "This combined with our drive to improve safety reliability and operating performance is helping us offset some of the effects of lower prices on our bottom line." Primarily driven by lower price realisations Taqa's revenues declined 29 per cent to Dh9.8 billion the energy company said Thursday in a regulatory filing to Abu Dhabi Securities Exchange. Taqa suffered a loss of Dh165 million over a profit of Dh513 million in the same period. The company reported a second quarter loss of Dh421 million compared with income of Dh239 million a year earlier. The energy company reduced cash costs by Dh758 million compared to the same period in 2014 already exceeding its 2015 full-year target of Dh550 million. "We are well positioned to achieve our targeted Dh1.5 billion of annual savings by the end of 2016" said LaFehr. Taqa reduced its capital expenditure by Dh1.05 billion during the period and is on track to deliver on its previously announced Dh2.5 billion or 40 per cent reduction from last year. Despite significantly lower capital expenditure and reducing its oil and gas unit operating costs by 19 per cent oil and gas production only decreased five per cent year-on-year to 150000 barrels of oil equivalent per day. The company started full commercial operations at its Gas Storage Bergermeer project in April providing 4.1 billion cubic meters of gas storage capacity enough to supply 2.5 million Dutch households for a year. It has completed construction and is now commissioning three additional projects; the Takoradi 2 power plant in Ghana where it is expanding capacity from 220 to 330 megawatts without increasing fuel consumption or emissions; the 100 megawatt Sorang hydro plant in northern India; and the 30 million imperial gallon per day reverse osmosis water desalination facility at its Fujairah 2 plant. Taqa refinanced $3.1 billion of existing revolving credit facilities at improved terms in order to reducing funding costs. -
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