- 11 May 2016
TAQA Q1 2016 Results
ABU DHABI, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA) today announced its results for the first quarter of 2016.“We continue to execute our strategy to meet the challenges of the low commodity price environment. Our cost transformation program continued to deliver outstanding results in the first quarter with savings of AED 1 billion while delivering one of our best operational performances in our history,” said Edward LaFehr, TAQA chief operating officer. “Record power generation volumes and robust oil and gas production coupled with sustainable cost savings have boosted free cash flow by 83%. This is helping us maintain our healthy liquidity position of AED 12.2 billion.”FinancialsA 43% drop in the price of oil and gas sold by TAQA reduced the group’s revenues by 24% to AED 3.9 billion and EBITDA by 21% to AED 2.0 billion compared to Q1 2015. Significant reductions of the capital and cash cost base boosted free cash flow to AED 1.5 billion, up 83% compared to Q1 2015. At the end of the quarter, available liquidity stood at AED 12.2 billion including AED 8.7 billion of unused credit facilities and AED 3.5 billion of cash and cash equivalents. As a result of lower oil and gas prices and absence of a one-off tax benefit in the UK, net income showed a loss of AED 608 million, compared to a profit of AED 256 million in Q1 2015. Cost transformationTAQA’s cost transformation program generated savings exceeding AED 5.0 billion in cash costs and capex in 2015. During Q1 2016, cash cost and capex-savings reached AED 994 million. These savings consist of an 18%, or AED 293 million, reduction in cash costs and a 72%, or AED 701 million, reduction in capital expenditure. Full-year 2016 capital expenditure is expected to be below AED 1.8 billion, a 42% reduction compared to 2015.Power & Water operationsTAQA produced record power reaching 17,022 gigawatt hours, an increase of 7% on the previous year’s quarter. Technical availability remained level at 87%. TAQA desalinated a total of 56,584 million imperial gallons of water during Q1 2016, a 5% decrease compared to Q1 2015 due to lower demand and planned maintenance at its water desalination facilities. Oil & Gas operationsDespite significant cuts in capital expenditure, TAQA maintained robust production levels of 153.7 thousand barrels of oil equivalent per day (mboepd), 3% lower compared to Q1 2015. Volumes were supported by the lifting of third-party pipeline constraints and strong performance at its unconventional liquids-rich gas assets in Canada. TAQA’s Atrush oil project in Iraq’s Kurdistan region is expected to commence oil production this year with a maximum gross capacity of 30,000 barrels per day.EmiratizationTAQA increased the proportion of UAE nationals holding senior corporate leadership roles to 60% from 43%. As at 31 March 2016, UAE nationals accounted for 47% of TAQA’s total corporate workforce compared to 28% a year ago.S&P credit ratingIn April S&P Global Ratings affirmed TAQA’s credit rating at ‘A’ (outlook stable), noting ongoing support from the Abu Dhabi government to TAQA. Moody’s Investor Service rates TAQA at ‘A3’.- ENDS -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, Kurdistan Region of Iraq, Netherlands, United Kingdom and United States.