Abu Dhabi National Energy Company PJSC (TAQA) made a net loss for the first nine months of the year on lower production.
The company made a net loss of 82 million dirhams in the nine months to September end, while its total revenues grew 3 per cent to 12.5 billion dirhams, driven by higher commodity prices, Taqa said in a statement.
It said the third quarter income was impacted by the unscheduled outage at the Sohar Aluminum smelter and negative mark-to-market movements at its US power plant tolling agreement during the period, the company said in a statement.
Its free cash flow is up 9 per cent year on year to 5.6 billion dirhams with increased capital investment activity move than covered by the higher EBITDA and favourable working capital movements compared to the same period in the prior year. EBITDA rose 7 per cent to 6.8 billion dirhams.
“We’re pleased to see continued strong free cash flow generation, as well as improved margins across our portfolio, which has benefited from increased efficiencies across our operations,” Saeed Hamad Al Dhaheri, acting chief operating officer, said. “During the period, TAQA achieved first oil at our Atrush development in Iraq, which marks an important milestone for the Group. The company has also been able to reduce our financing costs and gradually lower our debt, which will have a positive impact on our financial performance over the coming years.”
Taqa said its production volumes dipped 10 per cent to 128,300 barrels of oil equivalent per day (BORD), hit by a capital expenditure reduction and planned North Sea platform maintenance.
Its Iraq production began in July – Atrush Block in Kurdistan region of Iraq is expected to ramp up production to 30,000 barrels per day of gross capacity in 2017.