Abu Dhabi gov't-backed oil firm reports $114m Q2 loss as revenues slump by nearly half

Abu Dhabi National Energy Company (TAQA) has been hit by tumbling oil prices but has pushed to reduce capital expenditure and increase savings
Abu Dhabi gov't-backed oil firm reports $114m Q2 loss as revenues slump by nearly half
By Reuters
Thu 13 Aug 2015 10:47 AM

Abu Dhabi National Energy Company (TAQA), the state-controlled oil explorer and power supplier, swung to a net loss of AED421 million ($114.7 million) in the second quarter as revenues from oil and gas nearly halved, hit by lower prices.

This compares with net profit of AED239 million in the same quarter of last year, TAQA said in a stock exchange filing on Thursday.

Revenues from oil and gas fell to AED1.59 billion in the second quarter, versus AED3.08 billion in the prior-year period. Oil and gas production fell 5 percent in the first half this year, to 150,000 barrels per day.

"While the current commodity price environment has impacted the whole industry, our results show that we are delivering on our accelerated cost transformation program," Edward LaFehr, chief executive of TAQA said in the statement.

TAQA reduced its capital expenditure by AED1.05 billion in the first six months of 2015 and is on track to deliver on its previously announced AED2.5 billion, or 40 percent, reduction from last year.

TAQA also said it had cut oil and gas headcount by 22 per cent and head office jobs by 32 percent since July 2014.

"We are well positioned to achieve our targeted AED1.5 billion of annual savings by the end of 2016, and now have the organizational structure and momentum to deliver," said LaFehr.

The company on Wednesday refinanced $3.1 billion of existing revolving credit facilities at improved terms, cutting funding costs, TAQA said, confirming a Reuters report that TAQA was close to sealing the five-year credit facility at lower costs.

TAQA began full commercial operations at its Gas Storage Bergermeer project in April, providing 4.1 billion cubic meters of capacity. It will also be commissioning three power plants, in Ghana, India and the United Arab Emirates, before the end of the year, it said.

TAQA, 75 percent owned by the government of Abu Dhabi, posted a net loss of AED3.01 billion for 2014.

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