Abu Dhabi National Energy Company (Taqa) posted a net loss in the third-quarter as revenues were hit by weak oil prices, the state-owned oil explorer and power supplier said on Wednesday.
Taqa, 75 per cent owned by the government of Abu Dhabi, reported a net loss of Dh416 million for the quarter ending September 30, compared with a net profit of Dh107m in the prior-year period, the company said.
Revenue from oil and gas more than halved to Dh1.5 billion in the third quarter from a year earlier. This dragged the firm’s total revenue in the quarter to Dh4.8bn from Dh7.0bn in the same quarter last year.
For the nine-month period this year, Taqa’s losses totaled Dh581m dirhams compared with a profit of Dh620m for the same period in 2014.
“During the first three quarters, we have continued to position Taqa to withstand the current low commodity price environment,” Chief operating officer Edward LaFehr said in a statement.
Cost-cutting measures led to savings of Dh1.1bn in the first three quarters of 2015 with capex reduced by 43 per cent, he added.
Taqa is ahead of its targeted annual savings of Dh550m in 2015, and Dh1.5bn by the end of 2016. It has also reduced its global oil and gas headcount by 25 per cent since July 2014 and Abu Dhabi headquarters headcount by 39 per cent, the statement said.
Taqa refinanced a $3.1bn revolving credit facility at better terms in August.
Separately, Taqa said it was aiming to develop local oil and gas projects, leveraging its overseas expertise and signalling a shift in its strategy.
It signed an agreement with Abu Dhabi National Oil Company (Adnoc) to develop oil and gas projects in Abu Dhabi.
“Through our Canadian business in particular, we have a wealth of experience in horizontal drilling and multi-stage fracturing technology and reservoir development planning that would be of immediate benefit to Addnoc,” Mr LaFehr said.
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