The Abu Dhabi National Energy Co (Taqa), the state-owned oil explorer and power supplier, has reported a net loss in Q1 2016, hurt by low oil prices.
Taqa, majority-owned by Abu Dhabi’s government, made a net loss attributable to equity holders of AED608mn ($165.5mn) in the three months to March 31, versus a net profit of AED256mn ($69.69mn) in the same period of 2015, it said in a bourse statement.
A 43% drop in the price of oil and gas sold by Taqa reduced the group’s Q1 2016 revenues by 24% to AED3.9bn ($1.06bn).
Revenue from electricity and water fell slightly to AED2.1bn ($571.74mn) in the quarter versus AED2.2bn ($598.87mn) in the first quarter of 2015.
Taqa, in March, said it slashed its proposed capital expenditure for 2016 by 42% to no more than AED1.8bn ($490.06mn) in response to lower oil prices.
Despite significant cuts in capital expenditure, TAQA produced 153,700 barrels of oil equivalent per day in the first quarter, down 3% versus a year earlier, the company said.
“We continue to execute our strategy to meet the challenges of the low commodity price environment,” TAQA chief operating officer Edward LaFehr said in the statement, adding this had resulted in savings of AED1bn ($272.26mn) in the first quarter.
Earlier this month, TAQA said it was not in talks with any entity to sell its overseas oil and gas assets after Reuters reported that Taqa was considering whether to sell its overseas oil and gas assets to another Abu Dhabi state-owned entity.
Taqa is also considering an international bond issue, according to a recent report.
