Abu Dhabi National Energy Co.'s (Taqa) capital expenditure for 2014 will be between $2 billion and $2.5 billion, "a little less than in 2013," the company's chief executive, Carl Sheldon, said during a conference call on 25 March.
Taqa reported a net loss of 2.52 billion dirhams (US$687 million) in 2013, due to non-cash impairment related to the value of its oil and gas holdings in North America. Total revenues for 2013 were Dh25.8 billion, 7% lower year-on-year, compared with total revenues of Dh27.8 billion for the same period in 2012.
Taqa’s underlying revenues, cash flow and earnings all saw an improvement in 2013, a year of resilient operational performance, the company said.
Underlying revenues grew 3% year-on-year to Dh21.1 billion, and the business continued to generate strong operational cash flows, with EBITDA rising 1% to Dh13.4 billion.
The net result was affected by a one-off, non-cash impairment related to the value of the company’s North American oil and gas assets. "The company continues to enjoy a strong financial position, with high levels of liquidity."
The power and water segment, the bedrock of Taqa’s business, continued to produce a strong revenue and earnings stream, while oil and gas recovered from a setback in the UK early in the year to end on a high note with record production levels. The company hit key milestones on its large construction and growth projects, with several new facilities poised to come on stream over the next 18 months in the Netherlands, Morocco, Ghana and Iraq, the company said.
In the UK North Sea, TAQA successfully integrated the Harding platform and associated assets, which provides the company with a development portfolio across three fields that will extend the life and sustainability of the existing business in the UK. In Q4, UK production levels were a record 68,400 boed, compared with 39,500 boed during the same period in 2012, an increase of 73%.
In North America, TAQA effected a turnaround. The business was restructured, reducing headcount by 162, disposing of non-core acreage and creating a simpler organization. A more focused capital spending program, centred around the company’s highest-value prospects, has already started to generate higher production, while maintaining an industry-leading safety performance, the company said.
In Iraq, Taqa secured regulatory approval for the development plan of the Atrush field, with the first oil production expected in 2015.
In the power and water segment, underlying revenues grew by 5% to Dh9.0 billion, led by a strong performance of Taqa’s majority ownership of the UAE power and water fleet.
CEO Sheldon said: “Taqa has grown into Abu Dhabi’s leading international operator of strategic national energy infrastructure. We achieved record levels of oil and gas production, while underlying revenues from our power and water business rose strongly. The company is well positioned to take advantage of the unique opportunities ahead.”
Stephen Kersley, chief financial officer, said: “Underlying revenues and cash flow rose year-on-year, while the net result was affected by a one-off, non-cash accounting entry. Our strong levels of liquidity enable us to continue to fund operations and service our debt obligations on favorable terms.”
See also:
TAQA CEO to step down, 27 Feb 2014
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