TAQA Reorganises HQ to Save $20 Mln
TAQA, the international energy and water company based in Abu Dhabi, has undertaken a reorganisation at its headquarters to enhance efficiency.
The measures will reduce general & administrative costs by more than USD 20 million in 2014 and are part of a global initiative to position TAQA to deliver on its vision to be the leading international energy and water operator from Abu Dhabi.
“The corporate centre has grown over recent years to enable us to manage TAQA’s businesses across 11 countries effectively. Our commitment to pursuing excellence means we constantly review our cost base and monitor performance to ensure we deliver efficiently on our vision,” said Carl Sheldon, Chief Executive Officer.
As part of the reorganisation, the headquarters workforce will fall by 16%, reducing the headcount in the corporate centre to 189.
In eight years since it was founded through the privatisation of Abu Dhabi’s power and water fleet, TAQA has evolved into an operator of large-scale energy infrastructure in 11 countries including Ghana, India, Iraq, Morocco, the Netherlands, North America and the UK. In Abu Dhabi, the company has built up a world-class pool of talent of UAE National and expatriate professionals at its corporate centre in Sowwah Square, Maryah Island.
“As we become a more cohesive international group with greater capacity in Abu Dhabi, we are able to increase efficiency by leveraging our integrated global teams,” Sheldon added.
Earlier this year, TAQA announced two phases of reorganisation in the North American oil & gas business. This delivered improved performance from a simpler structure and USD 28 million in annual general and administrative savings.
TAQA also continues to optimise its portfolio to focus on core activities where it has a competitive advantage. The company agreed to sell its stake in the Dutch pipeline business, NGT, in November for USD 240 million and is in the process of raising USD 181 million through the sale of 15% of its Moroccan power business in a stock market listing.
“We will continue to reshape the portfolio and manage our exposure to ensure we have the right balance of international assets and quality of earnings. We will concentrate on those businesses where we have a distinctive advantage and that deliver most effectively on the vision of Abu Dhabi and the UAE,” Sheldon said.
In the UAE, TAQA is majority owner of eight power and water plants, which supply almost all of Abu Dhabi’s electricity and clean water. TAQA is also helping to diversify the UAE’s power and water sources with projects including water desalination, waste-to-energy, solar power, energy storage and energy efficiency.
Press Release, December 12, 2013