TAQA saw reduced revenues, liquidity remained strongStaff writer ▼ | April 4, 2016
Abu Dhabi National Energy company (TAQA) announced its financial results for the full year ended December 31, 2015.
TAQA The halving of market commodity prices in 2015
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 December 31, 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.
During 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. ■