- 12 Nov 2014
TAQA reports income of AED 620 million for 9M 2014
TAQA’s oil and gas production averaged a new record level of 158.5 thousand barrels of oil equivalent per day during the nine month period, up 17% compared to the first nine months of 2013. The company increased its power generation capacity by 700 megawatt (MW) to 17,095 MW following the expansion of the Jorf Lasfar power station in Morocco.Greater focus on managing costs and achieving greater business efficiencies resulted in a 9% reduction in general and administrative costs and reduced unit operating costs in our UK and North American businesses.Higher production levels and increased operational efficiencies supported by higher oil and gas prices raised underlying revenues by 14% to 16,866 million dirhams, and resulted in a record EBITDA of 11,446 million dirhams, up 21% against the same period in 2013.TAQA’s net income after minority interests was 620 million dirhams, up from 80 million dirhams in the first nine months of 2013.TAQA reduced its debt by over 3 billion dirhams by using excess cash flow and selling non-core assets.* Construction and backup fuel revenues have compensating expenses in cost of sales
+ Includes other operating revenues, ++ Includes gas storage and other operating revenuesComment
Edward LaFehr, Chief Operating Officer, said: “This financial result is due to excellent operational performance across our global asset base, combined with strong oil and gas pricing. We have also focused capital investment and reduced general and administrative costs, while maintaining our focus on safety. These efforts are even more important now in today’s challenging commodity price environment.”Oil and gas
The new Central North Sea assets lifted TAQA’s North Sea volumes to a record level of 61.0 mboed. The return to production of Cormorant Alpha lifted production levels and decreased unit operating costs.In North America, TAQA increased production levels by 2% to 89.6 mboed and lowered unit operating costs by 11%. As a result, netbacks increased by 21% compared to the year-ago period.Power and water
TAQA’s power production increased by 1% to 55,035 gigawatt-hours (GWh), with 43,741 GWh generated in the United Arab Emirates and 11,295 GWh internationally.Its desalination facilities in the United Arab Emirates produced 192,020 million imperial gallons, up 3% compared to the same period in 2013.Total average technical availability for its power and water fleet was 91.6%, with its facilities in the United Arab Emirates reaching a typical level of 92.2%. Technical availability at the international fleet recovered to 88.4%.Major project execution
TAQA plans to launch full commercial operations at its Gas Storage Bergermeer facility in the Netherlands in April 2015. All 46 terawatt-hours of storage capacity starting from 2015 has now been sold and the facility started operations with partial capacity earlier this year.First oil from TAQA’s Atrush Block in Iraq is on schedule for late 2015. Operations have resumed following a brief interruption to drilling activities after increased regional instability in August.Capital expenditure
Capex for full year 2014 is now expected to be 6.8 billion dirhams, a 2 billion dirhams reduction compared to the full year 2013. This is also lower than forecast at the beginning of the year, due to a more focused capital investment strategy and timing of project milestones. The Q4 capital programme is being reviewed given the evolving commodity price environment.Emiratisation
TAQA initiated a significant restructuring and strategy development process earlier in 2014 with a focus on enhancing Emiratisation. Saeed Al Dhaheri was appointed to the position of Executive Vice President Human Resources and General Services. Suhail Al Shamsi was promoted to the position of Group Vice President Treasury following the promotion of Ryan Wong to acting Chief Financial Officer.Financing and liquidity
TAQA reduced its debt by over 3 billion dirhams using excess cash flow and proceeds from the disposal of non-core assets. It raised 534 million dirhams from the disposal of non-core assets including undeveloped land in Alberta, Canada and its interest in Carlyle Infrastructure Partners L.P.As at the 30 September 2014, TAQA had available liquidity of 15 billion dirhams, including 3.0 billion dirhams of cash in hand.- ENDS -About TAQA
TAQA, meaning energy in Arabic, is the brand name of Abu Dhabi National Energy Company PJSC. We are an international energy and water company listed in Abu Dhabi operating in 11 countries across four continents.
We strive to be safe and sustainable, and embrace the challenge of delivering affordable and reliable energy and water. We are proud to align our strategy with Abu Dhabi’s Economic Vision 2030, a roadmap for a sustainable economy with a focus on knowledge-based industry.
Our interests lie in conventional and alternative power generation, water desalination, oil and gas exploration and production, pipelines and gas storage. We operate in Canada, Ghana, India, Iraq, Morocco, the Netherlands, Oman, Saudi Arabia, the United Arab Emirates, the United Kingdom and the United States.