Low oil prices drag Taqa to third quarter loss
- Business & Finance
Taqa has seen its third quarter 2015 results negatively impacted by a drop in oil prices.
The Abu Dhabi-based company recorded a net loss of AED 416 million ($113,3 million), compared to a profit of AED 107 million ($29.13 million) during the third quarter of 2014.
Explaining the loss, Taqa said that the decrease mainly relates to the material reduction in realized oil prices. Revenue for the quarter fell to AED 1.5 billion ($408.4 million), down from AED 3.18 billion ($865.7 million) last year.
Working to reduce its expenses, Taqa cut its capital spend by 43% so far this year. Since July 2014, the company reduced its global headcount by 22%. It has also reduced its Abu Dhabi headquarters headcount by 39%.
Edward LaFehr, Chief Operating Officer said: “During the first three quarters, we have continued to position TAQA to withstand the current low commodity price environment. Consistent with our commitments, we continue to drive cost transformation which has saved AED 1.1 billion and we have reduced capex by 43% in the first nine months.”
He added: “We have an exceptional power generation business and we are working hard to transform the oil and gas portfolio such that we can take advantage as prices recover.”