Abu Dhabi’s Taqa: Power Steady But Upstream Slumps With Capex Cuts

Recovering oil prices have boosted revenue at Abu Dhabi state firm Taqa, but net losses continue with the company lumbered with $20bn debts.

Abu Dhabi’s partially privatized energy company Taqa looks on track to raise its total revenues this year. The company’s power plants, both in the UAE and abroad, are earning steadily and its upstream assets – all overseas – are providing better income.

But the company again posted a net loss for the first nine months of 2017. Taqa’s Q1-3 2017 revenue was Dh12.53bn ($3.41bn at the fixed exchange rate of $1=Dh3.6725), down 40% from a record Dh20.71bn ($5.64bn) in Q1-3 2014 when Brent prices averaged $107/B.

POWER VS UPSTREAM: THE HARE & THE TORTOISE

2014 also marked the peak of the relative importance of the firm’s upstream oil and gas segment relative to the much more steady earnings mainly from Abu Dhabi’s power market where prices are regulated. (CONTINUED - 909 WORDS)

DATA INSIDE THIS ARTICLE

chart Taqa Q1-3 Revenue ($Bn): Steady Power Provides Near-60% Of Total Earnings. Upstream Revenues More Than Halved With 2014-15 Price Crash
table Taqa: Key Operational Data
table Taqa: Key Assets