- 11 Nov 2015
TAQA Q3 2015 Financial Results
ABU DHABI, United Arab Emirates – Abu Dhabi National Energy Company PJSC (“TAQA” or the “Company”) today announced its financial results and operating update for the first nine months of 2015.First nine months 2015 in brief:Edward LaFehr, Chief Operating Officer:”During the first three quarters, we have continued to position TAQA to withstand the current low commodity price environment. Consistent with our commitments, we continue to drive cost transformation which has saved AED 1.1 billion and we have reduced capex by 43% in the first nine months. This, combined with our focus on the safety and reliability of our asset base, positions us well to maintain cash-flow and strong financial liquidity in the current oil price environment. We have an exceptional power generation business and we are working hard to transform the oil and gas portfolio such that we can take advantage as prices recover.”Financial resultsThe Company posted total revenues of AED 14.7 billion compared to AED 20.7 billion in 2014. EBITDA decreased to AED 7.5 billion compared to AED 11.4 billion in 2014. As a result, the company recorded a net loss of AED 581 million, compared to a profit of AED 620 million during the same period in 2014. The decrease in income mainly relates to the material reduction in realized oil prices. Cash generation from the Company’s power and water operations remained solid.TAQA has responded to the drop in oil prices by reducing capital spend by 43%, continuing significant cost reductions and increasing efficiencies across its global operations. The Company’s Transformation Program has generated total saving of AED 1.1 billion during the first nine months of 2015. It is ahead of its targeted annual savings of 550 million in 2015, and AED 1.5 billion by the end of 2016. TAQA has reduced its global oil and gas headcount by 25% since July 2014. It has also reduced its Abu Dhabi headquarters headcount by 39%.TAQA successfully refinanced $3.1 billion revolving credit facility at improved terms in August, thereby reducing funding costs. The result leaves TAQA with cash, cash equivalents and undrawn credit facilities amounting to AED 12.2 billion. Moody’s and Standard & Poor’s reaffirmed TAQA’s credit ratings at A3 and A respectively.OperationalTAQA’s oil and gas production decreased by 9% to 144,900 barrels of oil equivalent per day (boepd), from 158,500 boepd, in the same period last year. The decrease is a result of natural decline, reduced capital investment and third-party pipeline restrictions in Canada, offset by higher production efficiency globally and a successful well intervention program in the UK. The Company has reduced unit operating costs by 40% in the Netherlands and 18% in the UK and North America.The Company’s power assets generated 61,418 megawatt-hours (MWh) compared to 55,036 MWh in the first 9 Months of 2014. This 11.6% increase was driven by strong performance in the United Arab Emirates and Morocco. Water desalination facilities produced 191,674 million imperial gallons (MIG) in line with 2014 production. Technical availability increased from 91.6% to 93.0% across the global fleet.Major projectsTAQA has completed three of its six major projects. The 4.1 billion cubic meter Bergermeer gas storage in the Netherlands, the expanded 330 MW Takoradi T2 power plant in Ghana and 100 MW Sorang hydro plant in northern India started production. In the fourth quarter, TAQA will bring on-stream its UK North Sea Cladhan project which will produce an initial 10,000 boepd. In the UAE, the 30 MIGD expansion of its Fujairah water plant is expected to start up before year end. The first phase of TAQA’s Atrush project in the Kurdistan Region of Iraq is scheduled to produce first oil in 2016 with production expected to reach 30,000 boepd gross. – ENDS -Analyst conference callTAQA will host a conference call for analysts in English on Wednesday 11 November 2015 at 16:00 (Abu Dhabi time), to discuss the Company’s first nine months 2015 results. To participate, please visit the Company’s website at www.taqa.com. A copy of the presentation will be available for download prior to the call and an audio archive will be available on the Company’s website following the call.About TAQATAQA is an international energy and water company listed in Abu Dhabi operating in 11 countries across four continents. The word TAQA means energy in Arabic.TAQA strives to run its company safely and sustainably, operating to the highest ethical standards. The company is proud to align its strategy to Abu Dhabi’s Economic Vision 2030, a road map for a sustainable economy with a focus on knowledge-based industry.TAQA has investments in power generation, water desalination, oil and gas exploration and production, pipelines and gas storage. The company’s assets are located in Canada, Ghana, India, Iraq, Morocco, Oman, Saudi Arabia, the United Arab Emirates, Netherlands, United Kingdom and United States.