- 30 Mar 2017
TAQA announces full year 2016 financial results, completion of Transformation Programme
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 worldwide, today announced its financial results and operational highlights for the financial year ended 31 December 2016.TAQA has completed its two-year Transformation Programme which delivered cumulative savings of AED 13.2 billion, including a capital expenditure reduction of AED 8.6 billion from 2014 to 2016. Additionally, TAQA has delivered a 25% reduction in global headcount with over 1,000 positions reduced across its global operations.TAQA’s 2016 full-year results have highlighted the operational efficiency gains and financial savings achieved through the Transformation Programme, most notably through:The company has booked a post-tax impairment of AED 16.9 billion, primarily related to its Oil & Gas assets, in response to the lower commodity price environment. This contributed to a Net Loss of AED 19.0 billion for the financial year 2016, with a pre-impairment Net Loss of AED 2.1 billion. The impairment is a one-time non-cash charge, and has no impact on TAQA’s ability to meet its obligations, including its ongoing debt service obligations.TAQA has also completed the transformation of its balance sheet. This was achieved through several measures, including the utilisation of certain land areas on which TAQA’s UAE power and water plants are located. The privatisation of Abu Dhabi’s power and water assets has unlocked significant long-term value which has been utilised by TAQA through signing a land lease agreement valued at AED 18.7 billion as of 31 December 2016. The valuation of the land lease rights was undertaken by two international, independent valuation experts. A previous agreement with a related party regarding TAQA’s Oil & Gas assets is no longer in effect.Commenting on the announcement, His Excellency Saeed Mubarak Al-Hajeri, Chairman of the Board of Directors, said: “The successful delivery of the Transformation Programme has significantly reshaped the business, making TAQA a more efficient and focused organisation. In addition, the recent additional equity now provides TAQA with the solid foundation to capitalise on future opportunities and achieve greater success. The land lease also avoids any share recapitalisation or dilution of the existing shareholders, and provides a greater opportunity for TAQA shareholders to realise long-term value from their investment.”TAQA’s Power & Water portfolio includes assets in the UAE, United States, Ghana, India, Morocco, Oman and Saudi Arabia. In 2016 the division achieved record operational and financial performance, generating 93,246 gigawatt hours (GWh), up 2% on 2015 and EBITDA of AED 6.7 billion driven by strong operational performance.Following the completion of the two year Transformation Programme, TAQA’s Oil & Gas assets in Europe and North America are operating more efficiently and are positioned to create additional value when pricing improves. TAQA is also the operator of 30,000 boed facility in the Kurdistan region of Iraq, is expected to deliver first oil in 2017.Financial highlights:Transformation Programme Update:Operational Highlights: Power & WaterOperational Highlights: Oil & GasCommenting on the results, Saeed Al Dhaheri, acting Chief Operating Officer, said: “While challenging macroeconomic conditions in the oil and gas industry continue to impact performance, the completion of a two-year business Transformation Programme initiated to combat lower commodity prices, generating AED 13.2 billion in cost savings while maintaining safe and reliable operations, is a clear demonstration of our commitment to delivering sustainable efficiencies.
This more competitive and resilient TAQA, built around our commitment to strong operational performance and safety in our core industries and boosted by the equity contribution related to our UAE power and water assets, is well placed to pursue further growth and value creating opportunities with a long-term focus in our core sector of Power & Water.” Mohammed Al Ahbabi, acting Chief Financial Officer, said: “We have aggressively reduced our capital expenditure and cash costs, in our efforts to achieve cash flow neutrality despite low commodity prices. We are pleased that external markets recognised these efforts as we successfully raised AED 6.4 billion to refinance maturing bonds at competitive rates despite challenging industry conditions. We continue to maintain our strong rating and liquidity position with the long-term objective being to deleverage the company. The net impact of the equity contribution and the impairment taken in relation to our Oil & Gas assets, is major step in that process.”- ENDS -TAQA media relations:
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firstname.lastname@example.orgFurther Full Year Financial Results 2016 information can be found here: https://www.taqaglobal.com/investors/fy-2016-financial-results