Abu Dhabi's Taqa company reports Dh416 million loss in 3Q

Date

11/14/2015 1:19:58 PM

(MENAFN- The Peninsula)

Abu Dhabi: Abu Dhabi National Energy Company (Taqa) posted a third-quarter loss although its top managers highlighted some operational improvements.

Taqa reported a loss of Dh416 million for the three months that ended on September 30 versus a profit of Dh107m in the same quarter last year. The loss was expected given the sharp decline in oil prices. The company's latest result brings its loss for the first nine months of this year to Dh581m from a profit of Dh620m a year earlier the UAE (The National) Newspaper reported.

The losses were driven by a halving of revenues at Taqa's oil and gas division to Dh1.5 billion in the third quarter from Dh3.2bn in the same period last year.

Meanwhile revenues from electricity and water operations surpassed those of oil and gas and held steady in the third quarter at Dh2.3bn.

"In challenging times our overall results continue to reflect our environment" said Taqa's chief operating officer Edward Lafehr. But he said the improved operational performance especially in water and electricity as well as Taqa's firm cash and liquidity position "underpins our efforts as management tries to reset the financial and operating framework of the business".

Even before the oil price collapse Taqa was hit by its exposure to natural gas assets in North America where prices were first to tumble. This was exacerbated by the oil price crash and the company's heavy debt load which stood at about Dh72bn at the end of the latest quarter and interest payments which have been running at well above Taqa's gross profit for several quarters.

Taqa has cut its capital expenditure by Dh1.9bn or 43 % year-on-year. Taqa's finance chief Grant Gillon said operating expenses had been cut by Dh1.1bn already putting the cuts well ahead of the target of Dh1.5bn by the end of next year.

The cuts have come at a cost – Taqa said its oil and gas production fell about 9 % to 144900 barrels of oil equivalent per day (boepd) from 158500 boepd in the first nine months of the year.

In addition Taqa cut 39 % of jobs at its Abu Dhabi headquarters and reduced its global oil and gas headcount by 25 %.

Taqa shares which are thinly traded have declined about 25 % in the past month. The shares remained unchanged at Dh0.42 yesterday.

QNA

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