The Abu Dhabi National Energy Company said yesterday that its net loss widened in the third quarter, as it continues to struggle with a large debt load in a low oil price environment.
The strategic energy investment company, known as Taqa, which is the near-monopoly power and water operator in Abu Dhabi, as well as holder of oil and gas assets in North America, Europe and Iraq, said its net loss in the three months to September was Dh524 million, which was 26 per cent more than the loss a year ago.
Revenue in the quarter fell by 13 per cent to Dh4.1 billion. In the first nine months of the year losses reached Dh1.7bn, compared with Dh581m a year ago. Revenue was down 17 per cent to Dh12.1bn, although its free cash flow increased by 25 per cent compared to a year ago.
“During the [first nine months of the year], we delivered a strong operational performance and further reduced our [capital expenditure] and costs base consistent with our plan,” said Saeed Al Dhaheri, Taqa’s acting chief operating officer.
The company said its oil and gas production fell by 1.9 per cent in the first three quarters to 142,200 barrels of oil equivalent per day, compared with the same period last year.
“The decrease is a result of capital expenditure reductions as well as the shut-in of the non-operated Brae Alpha platform during the first quarter,” the company said, adding that it reduced per-barrel operating costs by 22 per cent in Europe and 13 per cent in North America, as part of a deep cost-cutting programme, so far this year.
Power output was up 5 per cent, with gains in the UAE and its Moroccan utility operations.
The company’s liquidity was helped by the refinancing of US$1bn of bonds that were coming near to their maturities.
Although it has made strides to reduce its interest-bearing debt, it still stood at more than Dh62bn at the end of the third quarter. The cost of servicing that debt was little changed over the first three quarters compared with last year, at Dh3.4bn, which was about 25 per cent of gross revenue and 1.6 times gross profit.
Taqa said its losses this year have been exacerbated by unfavourable comparison with last year’s accounts, which reflected a Dh555m UK tax credit, but were also hit by a 31 per cent decline in realised oil and gas prices.
Taqa’s shares on the Abu Dhabi stock market gained 7.1 per cent yesterday to close at 60 fils
amcauley@thenational.ae
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