Abu Dhabi National Energy Company (Taqa) has returned to profit in Q1 of 2017 posting a net income of Dh77 million compared to a net loss of Dh608 million in Q1 last year as a result of higher oil prices and lower operation costs.
This is the first time Taqa has posted a profit for two years and follows an a wide ranging cost-cutting programme.
Commenting on the results, Saeed Al Dhaheri, acting chief operating officer, said: “After the completion of our two-year transformation programme, I am pleased to announce a return to profit for the first quarter. The transformative cost reduction initiatives are now sustainably embedded across the organisation and with the balance sheet stabilised, we are now well positioned to secure future growth as market conditions stabilise and improve. Moving forward, we plan to maintain discipline in cost and operational efficiency while focusing investment to our most profitable assets to maximise cash flow.”
The transformation programme has impacted the firm's oil and gas operations as production volumes are down by 14 per cent compared to Q1 last year and now stands at 32,200 boed, which Taqa said was "impacted by the 70 per cent reduction in oil & gas capital expenditure compared to 2014 levels, prior to the transformation programme."
Taqa did comment on its Iraq project and said that it was progressing with export pipeline nearing completion.
In a statement it said: "The Taqa-operated 30,000 boed (gross) Atrush production facility in Kurdistan, completed in 2016 and first oil is expected in 2017."