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Abu Dhabi’s partially privatized energy firm Taqa is bouncing back after a period of net losses from 2013 onwards forced the company to rethink its finances. In 2018 Taqa reported a net profit of AD398mn ($108mn), an increase of 145% from the $44mn reported in 2017.
This return to profit came after a four-year period of net losses which cumulated in a 2015 deficit of AD19bn ($5.17bn). The collapse of oil prices in 2014 forced Taqa into a ‘transformation program’ in which it slashed capital expenditure and targeted debt reduction ( MEES, 17 November 2017 ).
The transformation appears to be working as far as monies owed is concerned, with net debts reduced from AD72.98bn ($19.87bn) at the end of 2014 to AD62.88bn ($17.12bn) at the end of 2018. The return to profit comes despite Taqa’s total revenues being subdued since 2014, after which the power and water sector took over from oil and gas as the firm’s regular chief breadwinner (see chart). (CONTINUED - 847 WORDS)
DATA INSIDE THIS ARTICLE
|chart||Taqa Revenues: Power Earnings Dominate After 2014 Oil Price Collapse ($Mn)|
|chart||Upstream Output In Decline Since 2014 But Earnings Boosted By Oil Prices (‘000 Boe/D)|
|chart||Taqa Electricity Generation Steady Since 2015 (Twh)|