- 31 Mar 2016
TAQA reports full year 2015 results
ABU DHABI, United Arab Emirates – Abu Dhabi National Energy Company PJSC (“TAQA” or the “Company”) today announced its financial results for the full year ended 31 December 2015. Highlights: Edward LaFehr, Chief Operating Officer:“During 2015 we focused on maintaining and extending our strong financial liquidity position. In August we announced the refinancing of our revolving credit facilities at extremely attractive pricing. We also reduced our capital investment and cash costs by 52% and 21%, respectively, compared to 2014. This yielded an AED 5.0 billion cost structure improvement to significantly offset the lower oil and gas price impact. We also achieved record high production for our power and water business. Our oil and gas production of 145,300 barrels of oil equivalent per day represents a modest 8.6% decline. We exceeded all of our internal targets while shifting to a leaner and more efficient organization worldwide, with significant revisions to our operating model. We believe that our business transformation continues to build momentum and has positioned us well to deliver benefits and take advantage of markets as prices recover.” Financials Despite strong production volumes, the halving of market commodity prices in 2015 reduced revenues to AED 19.3 billion and EBITDA to AED 9.6 billion, compared to AED 27.3 billion and AED 14.5 billion respectively for the full year 2014.
In the third quarter of 2015, TAQA refinanced a $3.1 billion revolving credit facility on more favorable terms. Cash flow and liquidity remained strong. As of 31 December 2015, TAQA had available liquidity of AED 12.6 billion, including AED 9.2 billion of unused credit facilities and AED 3.4 billion of cash and cash equivalents. Supported by the Company’s transformation program, TAQA maintained the level of free cash flow at AED 5.8 billion, representing a reduction of 11% from 2014. The Company took a post-tax impairment charge of AED 681 million for the year, which led to an annual net loss of AED 1.8 billion. In 2014, the Company recorded a net loss of AED 3.0 billion.TransformationDuring 2015, TAQA’s transformation program reduced global operational expenditure and G&A costs by 21%, or AED 1.6 billion, already exceeding the 2016 run-rate savings target of AED 1.5 billion. TAQA also reduced its 2015 capital expenditure by 52%, or AED 3.3 billion, compared to 2014. Planned 2016 capital expenditure of AED 1.8 billion, represents a 42% reduction compared to 2015. These reductions have resulted from canceling or deferring most discretionary oil and gas investment.During the year, TAQA successfully completed the integration of its European and African subsidiaries allowing it to enhance operational efficiency and drive synergies between the businesses. TAQA has reduced over 900 positions, or around 25% of its global workforce, since 2014. The reduction resulted in the elimination of 32% of its oil and gas jobs and 55% of its headquarters workforce. In line with the Company’s strategy of selling non-core assets, TAQA plans to divest its stakes in Abu Dhabi-based Massar Solutions and the Lakefield wind power project in the United States. Power & WaterCash flow from the Company’s power and water operations remains strong and underpins the Company’s performance. The Company’s power and water units achieved record production in 2015 with power generation reaching 91,117 gigawatt hours, an increase of 10.1% on the previous year. Technical availability increased 1.1% to 92.3%, compared to 2014. UAE water desalination volumes totaled 264,127 million imperial gallons (MIG), a 1.5% increase compared to 2014. During the year, TAQA completed the expansion of its 330-megawatt Takoradi T2 power plant in Ghana and 130 MIGD reverse osmosis desalination plant at Fujairah. In Morocco, the 700-megawatt Jorf Lasfar power plant expansion marked the first full year of operations with technical availability reaching 95.2%. Jorf Lasfar is the largest coal-fired power plant in the MENA region.Oil & Gas Despite a 58% reduction in oil and gas capital expenditure relative to 2013, 2015 production remained robust at 145.3 thousand barrels of oil equivalent per day (mboepd), down 8.6% from 158.9 mboepd in 2014. TAQA produced an average of 79.5 mboepd in North America, 56.6 mboepd in the UK North Sea and 9.1 mboed in the Netherlands. A disciplined and focused approach to costs helped reduce net G&A and operational expenditures per barrel by 21% in North America and 18% in the UK North Sea. During the year, TAQA started full commercial operations at the Bergermeer gas storage facility in the Netherlands and achieved first oil at the Cladhan field in the UK North Sea.Significant advancements were made at the Atrush project in the Kurdistan region of Iraq. The 30 mboed Phase 1 development is expected to come on-stream in the second half of 2016.EmiratizationUAE nationals holding senior corporate leadership roles increased to 61% from 43%. During the year, the number of UAE nationals in TAQA’s headquarters grew to 44% from 28% a year ago. – ENDS -Analyst conference callTAQA will host a conference call for analysts in English on 31 March 2016 at 15:00 (Abu Dhabi time), to discuss the Company’s full year 2015 results. To participate, please visit the Company’s website at www.taqaglobal.com. A copy of the presentation will be available for download prior to the call and an audio archive will be available on the Company’s website following the call. About TAQATAQA is an international energy and water company listed in Abu Dhabi operating in 11 countries across four continents. The word TAQA means energy in Arabic.TAQA strives to run its company safely and sustainably, operating to the highest ethical standards. The company is proud to align its strategy to Abu Dhabi’s Economic Vision 2030, a road map for a sustainable economy with a focus on knowledge-based industry.TAQA has investments in power generation, water desalination, oil and gas exploration and production, pipelines and gas storage. The company’s assets are located in Canada, Ghana, India, Iraq, Morocco, Oman, Saudi Arabia, the United Arab Emirates, Kurdistan Region of Iraq, Netherlands, United Kingdom and United States.