Abu Dhabi: The Abu Dhabi National Energy Company (Taqa), a government-owned firm, posted big yearly losses owing to falling oil prices as the company announced its annual results on Wednesday.
It plans to cut capital expenditure and initiate cost-cutting measures to tide over the crisis.
According to the company, the total net loss for the year 2014 was Dh3 billion. This is the second consecutive net loss for the company. In 2013, it posted a net loss of Dh2.52 billion.
The international energy and water company, which has a number of power, oil and gas projects in North America, North Africa, Middle East, Europe and India said that it is going to cut its capital expenditure this year by 39 per cent, which amounts to Dh2.5 billion.
The company also initiated cost-cutting measures to the tune of Dh1.5 billion over the next two years, Taqa said in a statement on Abu Dhabi Stock Exchange.
As a consequence of this loss, the company said it will not pay a dividend for 2014.
Oil prices have been sliding since mid last year due to over production and weak demand. From a peak of $115 (Dh422) per barrel in June, oil prices came down to about to less than $50 in January.
Taqa produced an average of 158.9 million barrels of oil a day, a record for the company, contributing to revenues of Dh13.9 billion, up 14 per cent compared to 2013.
Edward LaFehr, Chief Operating Officer of Taqa said he is pleased with the performance of the company.
“Despite the challenging price environment, we have delivered outstanding operational performance, achieving record production and cash flows, while enhancing the safety and reliability of our assets.”
“We are confident of operating well in a low price commodity environment with focus and dedicated employees,” he said in a conference call.
In the Netherlands, Taqa completed its gas storage Bergermeer facility and achieved full capacity on April 1 and a hydro eclectic project in India is set to be delivered in the second quarter of the year.
The expansion of the reverse osmosis water desalination facilities at Fujairah 1, which began in 2013, is more than 85 per cent complete, the company said.
