TAQA announces full year 2016 financial results, completion of Transformation Programme

ABU DHABI, — A total of AED13. 2 billion in cumulative savings were achieved by Abu Dhabi National Energy Company, TAQA, in 2016 thanks to a well-integrated transformation programme, according to a statement released by the company on its 2016 financial results today.

TAQA is a leading global energy company headquartered in Abu Dhabi with operations in 11 countries worldwide.

TAQA in 2016 completed a two-year transformation programme which delivered cumulative savings of AED 13.2 billion, including a capital expenditure reduction of AED 8.6 billion from 2014 to 2016. Additionally, the company has delivered a 25% reduction in global headcount with over 1,000 positions reduced across its global operations.

TAQA’s 2016 full-year results highlighted the operational efficiency gains and financial savings achieved through the transformation programme, most notably through record power generation of 93,246 gigawatt hours (GWh), Limited Oil & Gas production decline despite 70% reduction in Oil & Gas capex, significant reduction in Oil & Gas unit operating costs, down 33% compared to 2014, and successful refinancing of AED 6.4 billion in maturing bonds at lower rates.

TAQA also completed the transformation of its balance sheet. This was achieved through several measures, including the utilisation of certain land areas on which TAQA’s UAE power and water plants are located.

The privatisation of Abu Dhabi’s power and water assets has unlocked significant long-term value which has been utilised by TAQA through signing a land lease agreement valued at AED 18.7 billion as of 31 December 2016. The valuation of the land lease rights was undertaken by two international, independent valuation experts. A previous agreement with a related party regarding TAQA’s Oil & Gas assets is no longer in effect.

Saeed Mubarak Al-Hajeri, Chairman of the Board of Directors, said, “The successful delivery of the Transformation Programme has significantly reshaped the business, making TAQA a more efficient and focused organisation. In addition, the recent additional support now provides TAQA with the solid foundation to capitalise on future opportunities and achieve greater success. The land lease also avoids any share recapitalisation or dilution of the existing shareholders, and provides a greater opportunity for TAQA shareholders to realise long-term value from their investment.”

Saeed Al Dhaheri, acting Chief Operating Officer, said, “While challenging macroeconomic conditions in the oil and gas industry continue to impact performance, the completion of a two-year business Transformation Programme initiated to combat lower commodity prices, generating AED 13.2 billion in cost savings while maintaining safe and reliable operations, is a clear demonstration of our commitment to delivering sustainable efficiencies.”

Source: Emirates News Agency

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