TAQA announces Q1 2017 Financial Results

May 11, 2017
Short description: 
TAQA today announced its financial results and operational highlights for the period ended 31 March 2017

  • Company reports positive quarterly net income, free cash flow rises 35%
  • Earnings driven by successful transformation and improving commodity prices
  • Capital expenditure increased by 69% following several years of deep cuts

11 May 2017

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 financial results and operational highlights for the period ended 31 March 2017.

Commenting on the results, Saeed Al Dhaheri, acting Chief Operating Officer, said: “After the completion of our two-year transformation programme, I am pleased to announce a return to profit for the first quarter. The transformative cost reduction initiatives are now sustainably embedded across the organisation and with the balance sheet stabilised, we are now well positioned to secure future growth as market conditions stabilise and improve. Moving forward, we plan to maintain discipline in cost and operational efficiency while focusing investment to our most profitable assets to maximise cash flow.”

Financial highlights:

  • Total revenues of AED 4.1 billion, an increase of 6% on previous year (Q1 2016: AED 3.9 billion), driven primarily by the impact of higher realised oil and gas prices.
  • EBITDA of AED 2.4 billion, up 23% on previous year period (Q1 2016: AED 2.0 billion) boosted by the higher realised commodity prices and sustained cash cost savings. 
  • Net income of AED 77 million, compared to a net loss of AED 608 million in Q1 2016, as a result of higher commodity prices and lower costs.              
  • Free cash flow of AED 2.0 billion, an increase of 35% (Q1 2016: AED 1.5 billion) with the increased capital expenditure being more than covered by the higher EBITDA and favourable working capital movements.
  • Total liquidity remains strong at AED 12.8 billion, including AED 3.7 billion in cash and cash equivalents and AED 9.1 billion of undrawn credit facilities. Total debt was reduced by AED 675 million during the period while interest paid reduced by AED 174 million.

Operational Highlights: Power & Water

  • Global power generation at 16,413 GWh compared to 17,022 GWh in Q1 2016. Global technical availability was at 84.3% compared to 87.1% in Q1 2016.
  • UAE operations produced 12,336 GWh of electricity and 57,216 million imperial gallons of desalinated water, stable compared to Q1 2016 and continuing to deliver the vast majority of water and electricity requirements of Abu Dhabi.

Operational Highlights: Oil & Gas

  • Production volumes of 132,200 barrels of oil equivalent per day (boed), down 14% on Q1 2016 (153,700 boed) impacted by the 70% reduction in oil & gas capital expenditure compared to 2014 levels, prior to the transformation programme.
  • Iraq project progressing with export pipeline nearing completion.  The TAQA-operated 30,000 boed (gross) Atrush production facility in Kurdistan, completed in 2016 and first oil is expected in 2017.

 

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TAQA media relations:  
Allan Virtanen, Head of Communications
Tel: +971 2 691 4894 | Mob: +971 56 685 2717
allan.virtanen@taqaglobal.com