• 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 13 minutes Could Venezuela become a net oil importer?
  • 18 minutes Oil prices going Up? NO!
  • 2 hours The Tony Seba report
  • 3 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 2 hours Harley-Davidson "Made in EU"
  • 1 hour Could Venezuela become a net oil importer?
  • 48 mins Time Of Recession - China and Europe Are Warning That A Trade War Could Trigger A Global Recession
  • 3 hours Erdogan After Erdogan: New Presidential Mandate After Yesterday's Elections
  • 7 hours LNG Shortage on the Way
  • 3 hours The U.S. Will Soon Give North Korea a Timeline of 'Specific Asks
  • 13 hours Kenya Eyes 200+ Oil Wells
  • 13 hours Are Electric Vehicles Really Better For The Environment?
  • 5 hours Sell out now or hold on?
  • 17 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 22 hours Saudi Arabia turns to solar
  • 13 hours OPEC soap opera daily update
  • 1 hour Could oil demand collapse rapidly? Yup, sure could.
  • 5 hours No LNG Pipelines? Let the Trucks Roll In
Is This The Biggest Fintech Opportunity Of 2018?

Is This The Biggest Fintech Opportunity Of 2018?

The global remittance market is…

This Russian Oil Major Is Ready To Open The Taps

This Russian Oil Major Is Ready To Open The Taps

Russia’s oil giant Lukoil is…

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