Abu Dhabi National Energy Company (Taqa), the state-owned oil explorer and power supplier, on Wednesday reported a first-quarter net loss, hurt by low oil prices.
Taqa, majority-owned by Abu Dhabi’s government, made a net loss attributable to equity holders of Dh608 million in the three months to March 31, versus a net profit of Dh256m in the same period of 2015, it said in a bourse statement.
A 43 per cent drop in the price of oil and gas sold by Taqa reduced the group’s first-quarter revenue by 24 per cent to Dh3.9 billion.
Revenue from electricity and water fell slightly to Dh2.1bn in the quarter versus Dh2.2bn in the first quarter of 2015.
Taqa, in March, said it slashed its proposed capital expenditure for 2016 by 42 per cent to no more than Dh1.8bn 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 per cent 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 Dh1bn in the first quarter.
Earlier this month, Taqa said it was not in talks with any entity to sell its 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.
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