• 2 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 2 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 2 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 days Schlumberger Warns Of Moderating Investment In North America
  • 2 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 2 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 3 days British Utility Companies Brace For Major Reforms
  • 3 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 3 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 4 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 4 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 5 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 5 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 days China To Take 5% Of Rosneft’s Output In New Deal
  • 5 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 6 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 6 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 6 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 7 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 7 days Aramco Says No Plans To Shelve IPO
China Drives Natural Gas Demand Boom

China Drives Natural Gas Demand Boom

China is poised to surpass…

Clashes In Kurdistan Send Oil Prices Higher

Clashes In Kurdistan Send Oil Prices Higher

Reports of skirmishes between Iraqi…

Abu Dhabi’s Taqa Books Biggest Loss Ever On Oil Assets Write-Down

Abu Dhabi

Low oil prices have been not only weighing heavily on the financials of western oil majors, but also led to Abu Dhabi National Energy Company -- also known as Taqa -- writing down billions of dollars worth of oil and gas assets that resulted in a huge loss for 2016, the biggest loss the company has ever recorded.

State-controlled Taqa said on Thursday that it booked a net loss of $5.2 billion (19 billion dirhams), mostly due to impairment of $4.6 billion (16.9 billion dirhams), primarily related to oil and gas assets in response to lower commodity prices. According to Bloomberg, this was the largest ever loss for the company.

To compare, for 2015, Taqa booked a loss of $490 million (1.8 billion dirhams).

The 2016 impairment was recognized as “a one-time non-cash charge with no impact on ability to meet obligations including ongoing debt service obligations,” the company said.

Taqa’s last year revenues dropped by 17 percent, chiefly due to the impact of lower commodity prices and decreased sales volumes.

Free cash flow rose by 25 percent on the back of capex cuts and stricter cost management.

In order to cope with the low oil prices, Taqa completed its 2014-2016 ‘transformation program’, which resulted in total savings of $3.6 billion (13.2 billion dirhams), reduced capex by $2.3 billion (8.6 billion dirhams), and cut 25 percent of its global workforce, or more than 1,000 positions.

Related: OPEC Compliance Nears 100% On Libyan, Nigerian Outages

“We have aggressively reduced our capital expenditure and cash costs, in our efforts to achieve cash flow neutrality despite low commodity prices,” Mohammed Al Ahbabi, acting CEO, said.

It’s not only Abu Dhabi National Energy Company that has been grappling with the low oil prices in Abu Dhabi. Last year, Abu Dhabi National Oil Company (ADNOC) merged two of its offshore oil companies, Abu Dhabi Marine Operating Corp and Zakum Development Co, in efforts to consolidate assets, boost efficiency, and reduce costs. ADNOC also plans to merge three shipping companies, Abu Dhabi National Tanker Co, Petroleum Services and Abu Dhabi Petroleum Ports Operating Co, by the end of this year.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News