22 March 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 reported its fully audited financial results and operational highlights for the financial year, ending 31st of December 2017.
TAQA reported a net profit attributable to shareholders of AED 160 million for the 2017 financial year, as the oil and gas business benefitted from higher hydrocarbon prices and sustained cost efficiencies, and the power and water business continued to deliver strong income.
TAQA’s total revenues stood at AED 16.7 billion in 2017, an increase of 4% on 2016. Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 7% to AED 9.1 billion, with sustained cash cost savings contributing to the improved EBITDA margin.
The company continues to benefit from the two-year transformation programme, which finished in 2016, having delivered an AED 13.2 billion reduction in costs, including capital and operating expenditure. In 2017, operating expenditure in the oil and gas business was approximately 40% lower than 2014 levels.
In 2017, TAQA generated free cash flow of AED 7.4 billion, which was 1% higher than in 2016. This increase was primarily a result of the aforementioned higher EBITDA which was utilized to support increased levels of investment.
H.E. Saeed Mubarak Al-Hajeri, Chairman of the Board of Directors, said:
“Having completed a two-year transformation programme in 2016, TAQA is now well positioned to contribute further to the economic diversification strategy being pursued by the Abu Dhabi government – our main shareholder. Our base in the UAE’s capital has given us a stable economic and financial environment, where we benefit from our long experience and robust capabilities in the power and water sector as we supply the majority of Abu Dhabi’s power and water needs, while our regional business networks are critical to sourcing attractive opportunities in the future.
Across the region, policymakers are encouraging greater investment in vital infrastructure. As TAQA charts a new strategic path in the coming years, it will be able to draw experience in building a global business, and the technical expertise that runs through all our operations.”
Full year 2017 financial highlights:
Operational Highlights: Power & Water
Operational Highlights: Oil & Gas
“TAQA has come through an extremely tough market environment, with the company’s 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 power and water sector.”
Mohammed Al Ahbabi, acting Chief Financial Officer, said:
“Since oil prices fell sharply in 2014, TAQA has worked hard to transform the company. We have already seen positive operational and financial results of our work, with the transformation programme resulting in the reduction of costs by AED 13.2 billion. TAQA has been able to continue to record strong cash flow generation, and improved profitability, with total revenues increasing 4 percent in 2017 to AED 16.7 billion, and the company turning to a net profit. We have been working hard to lower TAQA’s finance costs, and we are gradually reducing its debt levels, which will have a positive impact on our financial performance in the coming years.”
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TAQA media relations:
Sara Al Blooshi
Tel: +971 2 691 4940