8 February 2018
ABU DHABI, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA), a leading global energy company headquartered in Abu Dhabi with operations in 11 countries, today announced its preliminary financial results and operational highlights for the full financial year, ending 31st of December 2017.
Commenting on the results, Saeed Hamad Al Dhaheri, acting Chief Operating Officer, said: “TAQA has come through an extremely tough market environment, with the company’s preliminary financial results reflecting the company’s resilience. Turning to a net profit in 2017 is therefore an impressive and notable achievement. Higher hydrocarbon prices, together with sustained cost efficiencies, benefited our oil and gas business, while the power and water business continued to deliver a robust operational and financial performance. The company is focused on optimizing returns from all of its global assets, while playing a key role in Abu Dhabi’s economic development by being a major player in the regional utilities sector.”
Full year 2017 financial highlights:
- 2017 total revenues of AED 16.7 billion, an increase of 3% on 2016 (2016: AED 16.1 billion) primarily driven by higher commodity prices that benefitted the oil and gas business, while the power and water business remained steady.
- 2017 EBITDA of AED 9.5 billion, up 11% on 2016 (2016: AED 8.5 billion) supported by higher revenues and sustained cash cost savings.
- TAQA turned to net profit in 2017. Profit attributable to equity holders of AED 171 million compared to a 2016 loss of AED 19.0 billion, because of the exceptional impairment charge of AED 22.0 billion in the previous year.
- 2017 free cash flow of AED 7.2 billion, a decrease of 1% on 2016 (2016: AED 7.3 billion), principally due to increased capital investment to sustain the performance of the Group’s existing portfolio of assets.
- Total liquidity remains strong at AED 15.4 billion, including AED 4.2 billion in cash and cash equivalents and AED 11.2 billion of undrawn credit facilities.
Operational Highlights: Power & Water
- Global power and water business delivered a robust operating performance, with 89,846 GWh of gross power generation and 249,469 MIG of gross water desalination. This places TAQA in the global industry’s top quartile producers. Global power technical availability decreased slightly to 92.1% in 2017, from 93.6% in 2016, due partly to unplanned outages at a power plant in Ghana and at the Sohar Aluminium Smelter.
- UAE operations produced 64,064 GWh of electricity and 249,469 MIG of desalinated water, meeting the majority of Abu Dhabi’s water and electricity requirements.
Operational Highlights: Oil & Gas
- Production volumes of 126,200 barrels of equivalent oil per day (boe/d) in 2017, down by 8% from 2016 (137,300 boe/d), impacted by natural decline, prior capital expenditure reductions and planned North Sea platform maintenance.
- Operating margins per barrel increased, driven by higher realised prices and sustained cost efficiency.
- Production at the Atrush Block in the Kurdistan Region of Iraq began in July 2017 and TAQA received its first payments from the Kurdistan Regional Government.
- ENDS -
TAQA media relations:
Sara Al Blooshi
Tel: +971 2 691 4940