Taqa revenues rise 3% to Dh21.1 billion in 2013

Taqa continues to enjoy a strong financial position, with high levels of liquidity.— Wam file photo

Abu Dhabi National Energy Company or Taqa’s reported a net loss of Dh2.5 billion due to non-cash impairment of Dh3.2 billion, mostly relating to the value of oil and gas holdings in North America.

The one-off impairment was realised as a result of a reduction in the long-term assumptions for natural gas prices in North America and is in line with recent write-downs by other natural gas producers in the region.

The impairment does not affect the company’s ability to continue operations or service its debt obligations, Abu Dhabi’s energy and water company said. As a consequence of the net loss, the company will not pay a dividend for 2013.

The revenues rose three per cent to Dh21.1 billion in 2013, as business continued to generate strong cash flows.

The Abu Dhabi based international energy and water company, said “cash flow and earnings all saw improvement in a year of resilient operational performance.”

The company continues to enjoy a strong financial position, with high levels of liquidity, and has planned capital expenditure in excess of $2 billion in 2014.

The power and water segment, the bedrock of Taqa’s business, continued to produce a strong revenue and earnings stream, while oil and gas recovered from a setback in the UK early in the year to end the year on a high note with record production levels. The company hit key milestones on its large construction and growth projects, with several new facilities poised to come on stream over the next 18 months in the Netherlands, Morocco, Ghana and Iraq.

In the North Sea, Taqa successfully integrated the Harding platform and associated assets, which provides the company with a development portfolio across three fields that will extend the life and sustainability of the existing business in the UK.

In last quarter of 2013, UK production levels grew 73 per cent year-on-year to a record 68,400 barrels of oil equivalent per day (boed).

In North America, Taqa affected a turnaround. The business was restructured, reducing headcount by 162, disposing of non-core acreage and creating a simpler organisation.

In Iraq, Taqa secured regulatory approval for the development plan of the Atrush field, with the first oil production expected in 2015.

The first of two new units at the Jorf Lasfar Energy Company power plant in Morocco, where Taqa already provides about 40 per cent of the country’s power, synchronised to the grid in October, and the second unit is due for commissioning in the first half of 2014.

The successful IPO of the Moroccan business on the Casablanca stock exchange in December raised significant funds for Taqa and added a critical new stakeholder base for the company.

Construction of the Bergermeer gas storage plant in the Netherlands reached an advanced stage, with the start of preliminary operations on schedule for April 2014. When this project is complete in 2015, it will be the largest open access gas storage facility in Europe.

Carl Sheldon, Chief Executive Officer, Taqa is “well positioned to take advantage of the unique opportunities ahead.”