Taqa second-quarter loss widens on lower oil, gas prices

Dubai: Abu Dhabi National Energy Company, the government-controlled utility known as Taqa, reported a wider loss in the second-quarter as lower oil and natural gas prices crimped revenue. The shares fell for the first time this week.
The net loss was Dh588 million ($160 million) in the three months ended June 30 compared to Dh421 million in the same period a year earlier, Taqa said in statement to the Abu Dhabi stock market on Wednesday. Sales fell 14 percent to Dh4 billion.
"While our realised oil and gas prices dropped by 39 per cent, the upstream business has adapted to the changes and continued to transform into a more resilient business able to compete in this tough environment,” Saeed Al Dhaheri, Taqa’s acting chief operating officer, said in a separate statement which referred to first-half results.
Taqa produces oil and gas from Canada to North Africa and has stakes in most of Abu Dhabi’s power plants. The company has been cutting costs and trying to reduce debt to deal with oil prices that have dropped more than 50 per cent since mid-2014.
Taqa dropped 1 fil, or 1.8 per cent, to 55 fils by 10:46 a.m. in Abu Dhabi trading. The stock has gained 17 per cent this year.
Taqa said it cut costs by more than Dh6.5 billion since 2015, including a $1 billion bond refinancing that reduced corporate interest payments by Dh70 million. Capital spending in the first half fell 73 per cent to Dh1.3 billion as Taqa completed projects in 2015 and cut "discretionary investment.”
Brent crude oil averaged $46.01 a barrel in the second quarter and U.S. natural gas prices were $2.14 per million British thermal units, Taqa said.