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Taqa reports a net loss of Dh82m for nine months of 2017

Firm to target Dh1.5b in capex for the full year as oil prices recover

Gulf News

Abu Dhabi: Abu Dhabi National Energy Company, Taqa, reported a net loss of Dh82 million for the first nine months of 2017 compared to a loss of Dh1.72 billion during the same period last year.

In the third quarter of this year, the company posted a loss of Dh194 million as against Dh524 million loss during the same period last year.

“Third-quarter income [was] impacted by the unscheduled outage at the Sohar Aluminium smelter and negative mark-to-market movements at our US power plant tolling agreement during the period,” the company said in a statement.

Total revenues of the company reached Dh12.52 billion in the first nine months of 2017, an increase of 3 per cent on the first nine months of 2016 primarily driven by higher commodity prices. The company posted a revenue of Dh12.14 billion in the first nine months of 2016.

The company, majority owned by Abu Dhabi government, is active in 11 countries in water and power generation as well as oil and gas production.

Global power generation of the firm was stable at 63,237 gigawatt hours (GWh) compared to 64,590 GWh in the nine months 2016, the company said.

In oil and gas, production volumes reached 128,300 barrels of oil equivalent per day (boed), down 10 per cent on nine months 2016 figure of 142,200 boed impacted by natural decline, prior capital expenditure reductions and planned North Sea platform maintenance.

Iraq oil production started in July with Atrush Block in the Kurdistan region is expected to ramp up towards the 30,000-barrel-per-day project capacity in 2017.

The company also said payments for Atrush deliveries commenced in October with the Kurdistan region government completing its first payment for July crude oil exports.

“We received our first payment and are anticipating another payment. There are no indications that payment would be delayed,” Mohammad Al Ahbabi, acting chief financial officer told analysts in a conference call on Thursday.

Following several years of deep cuts, the company increased nine-month capex by 23 per cent to Dh909 million. The company is targeting Dh1.5 billion in capital expenditure for the full year in 2017.

“Increase in capex in line with commodity price recovery, to protect and sustain the value of global assets,” added Al Ahbabi.

Total debt was reduced by Dh2.6 billion in the first nine months of 2017 while interest paid reduced by Dh286 million. A $500 million bond was retired at maturity on October 25, 2017.

Despite narrowing third quarter losses, Taqa’s shares fell 6.15 per cent to reach 0.61 fils during early trading on Thursday, their lowest level since late August.