State-owned power supplier reveals widening losses in bourse filing
Abu Dhabi National Energy Co (TAQA), the state-owned oil explorer and power supplier, reported a second-quarter net loss of AED588 million ($160.2 million), as it was hit by low oil prices.
This compares with a net loss of AED421 million in the same quarter in 2015, TAQA said in a bourse filing.
Revenues from oil and gas fell to AED1.04 billion in the second quarter versus AED1.59 billion in the prior-year period.
The lower earnings were primarily due to a 39 percent drop in oil and gas prices realised by the company, TAQA said, adding that earnings were also hurt by the absence of a one-off AED555 million British tax credit booked in early 2015.
TAQA produced 147,400 barrels of oil equivalent per day during the first half of 2016, 2 percent lower than in the first half of 2015, it said without giving a quarterly breakdown.
Capital expenditure in the six months to June 30 was slashed by AED1.3 billion or 73 percent compared to the first half of last year, mainly because of completion of major projects as well as cuts to "discretionary investment", it said.
TAQA said it had achieved more than AED6.5 billion of cash cost and capital expenditure savings under a transformation programme that was launched in 2015.
In June, TAQA sold a $1 billion two-tranche bond to be used for general corporate purposes and to pay back a $1 billion bond maturing in October.
In the same month, TAQA sold all capacity at its Dutch Bergermeer gas storage facility for the 2016-17 storage year. The company also announced the departure of its chief operating officer Edward LaFehr and the appointment of Saeed Hamad Al Daheri as acting COO.
TAQA has been involved in oil and gas exploration and production in overseas markets such as Canada, Iraq, the Netherlands and Britain. In the UAE, it is a key player in power generation and water desalination.