Dubai: Abu Dhabi National Energy Company (Taqa) reported on Thursday a net loss of Dh19 billion for 2016, primarily on the back of Dh16.9 billion in post-tax impairment charges related to the company’s oil and gas assets.
In a statement to the Abu Dhabi bourse, Taqa said the impairment to assets was in response to the lower commodity price environment. It added that the impairment “is a one-time non-cash charge, and has no impact on Taqa’s ability to meet its obligations.”
The loss in 2016 compares to Dh1.8 billion in losses in 2015.
Meanwhile, revenues for the year reached Dh16.1 billion, down 17 per cent on the Dh19.3 billion recorded in 2015. The decline was driven by lower commodity prices and volumes.
To mitigate lower commodity prices, Taqa implemented a two-year transformation programme, which was completed in 2016, to cut costs and deliver total savings of Dh13.2 billion. This included a capital expenditure reduction of Dh8.6 billion from 2014 till 2016, and over 1,000 jobs across the company’s global operations, reducing headcount by 25 per cent.
