Abu Dhabi’s TAQA reports Q2 net loss of $160m

Abu Dhabi National Energy Co (TAQA), the state-owned oil explorer and power supplier, on Wednesday reported a wider second-quarter net loss as low oil prices continue to weigh on its earnings.

TAQA, majority-owned by Abu Dhabi’s government, made a net loss attributable to equity holders of Dhs588m ($160m) in the three months to June 30. This compares with a loss of Dhs421m in the same quarter of last year.

Revenues from oil and gas fell to Dhs1.04bn in the second quarter from Dhs1.59bn a year ago.

The lower earnings were primarily due to a 39 per cent 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 Dhs555m British tax credit booked in early 2015.

TAQA produced 147,400 barrels of oil equivalent per day during the first half of 2016, 2 per cent 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 Dhs1.3bn or 73 per cent 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 Dhs6.5bn of cash cost and capital expenditure savings under a transformation programme that was launched in 2015.

In June, TAQA sold a $1bn two-tranche bond to be used for general corporate purposes and to pay back a $1bn bond maturing in October this year.

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 United Arab Emirates, it is a key player in power generation and water desalination.