Abu Dhabi National Energy Company (Taqa), which has amassed Dh59 billion (US$16.06bn) in debt, is seeking to build a stronger balance sheet. The Abu Dhabi Government-controlled company has set a five-year target of shrinking its debt-to-capital ratio to 70 per cent from 81 per cent, said Carl Sheldon, the general manager of Taqa.
If equity stayed constant, that would mean more than halving the company's debt by 2015. Mr Sheldon, who became the company's top manager last October, said the target was realistic. "Our business is very cash positive and our five-year plan, even with a totally funded capital [spending] plan, shaves debt down to 70 per cent," he said. "You have to deliver the performance and squeeze the business hard for net income."
Such hard-nosed talk was seldom heard from Mr Sheldon's predecessor, Peter Barker-Homek, a mergers and acquisitions specialist who went on a three-year shopping spree to build up a $25bn portfolio of international oil, gas and electricity assets spread across four continents. The acquisitions were mostly debt-financed. Early last year, Taqa's debt reached 88 per cent of capital. In October, the company announced a "restructuring" of its senior management team. Mr Sheldon, a lawyer who was then Mr Barker-Homek's deputy, was handed the helm as his former boss was shown the door.
Mr Sheldon is steering Taqa on a different course; one he hopes will keep the company off the financial rocks. "Our focus is very much within the operations in our existing portfolio," he said. Those include oil and gas production, one of the new businesses the former UAE electrical power utility entered when it set out to become an international energy company. Taqa's oil and gas business suffered last year and the company was forced to book Dh228 million of "impairment charges". It posted a profit for the year of just Dh183m on Dh16.94bn revenue.
But Mr Sheldon planned to retain the oil and gas operations, along with Taqa's other new business of "midstream" gas services such as gas processing and storage. In the short-term, he will try to make the parts work more smoothly together, not necessarily through physical connection. More often this will involve "understanding how commodities markets work", so the company can capture arbitrage opportunities.
Physical connections will be key in north-western Europe, where the company has North Sea oil and gas production, the beginnings of a network of offshore and onshore gas pipelines, and gas storage facilities. Anchoring Taqa's growth aspirations in continental Europe is its lead position in the Bergermeer project to establish a huge gas trading and storage hub in the Netherlands. By the time Bergermeer is completed, in 2013 or 2014, Taqa's European pipeline system will be connected to Norwegian and Russian supplies, and to coastal facilities for importing liquefied natural gas. That should stimulate further gas infrastructure development around the pipelines.
"Our idea is to have a centre of excellence for oil in Aberdeen and for gas in the Netherlands," Mr Sheldon added. Although he will not sell any of Taqa's assets for the moment, a longer-term strategic change will be to draw the company's regional focus closer to home. "We think the MENA region is core for us, and we certainly see future growth there. It's a place where we have a significant contribution to make," Mr Sheldon said.
Long term, he hopes to expand Taqa's portfolio of renewable energy assets and considers the EU-backed Desertec Industrial Initiative to export power to Europe from solar and wind projects in the Sahara and Arabian deserts as an interesting opportunity. @Email:tcarlisle@thenational.ae
COMPANY PROFILE
Name: Grubtech
Founders: Mohamed Al Fayed and Mohammed Hammedi
Launched: October 2019
Employees: 50
Financing stage: Seed round (raised $2 million)
JOKE'S%20ON%20YOU
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MATCH INFO
Arsenal 1 (Aubameyang 12’) Liverpool 1 (Minamino 73’)
Arsenal win 5-4 on penalties
Man of the Match: Ainsley Maitland-Niles (Arsenal)
How being social media savvy can improve your well being
Next time when procastinating online remember that you can save thousands on paying for a personal trainer and a gym membership simply by watching YouTube videos and keeping up with the latest health tips and trends.
As social media apps are becoming more and more consumed by health experts and nutritionists who are using it to awareness and encourage patients to engage in physical activity.
Elizabeth Watson, a personal trainer from Stay Fit gym in Abu Dhabi suggests that “individuals can use social media as a means of keeping fit, there are a lot of great exercises you can do and train from experts at home just by watching videos on YouTube”.
Norlyn Torrena, a clinical nutritionist from Burjeel Hospital advises her clients to be more technologically active “most of my clients are so engaged with their phones that I advise them to download applications that offer health related services”.
Torrena said that “most people believe that dieting and keeping fit is boring”.
However, by using social media apps keeping fit means that people are “modern and are kept up to date with the latest heath tips and trends”.
“It can be a guide to a healthy lifestyle and exercise if used in the correct way, so I really encourage my clients to download health applications” said Mrs Torrena.
People can also connect with each other and exchange “tips and notes, it’s extremely healthy and fun”.
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Game Changer
Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
Result
UAE (S. Tagliabue 90 1') 1-2 Uzbekistan (Shokhruz Norkhonov 48', 86')
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Starring: Jamie Foxx, Angela Bassett, Tina Fey
Directed by: Pete Doctor
Rating: 4 stars
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
More from Armen Sarkissian
Company Profile
Company name: Yeepeey
Started: Soft launch in November, 2020
Founders: Sagar Chandiramani, Jatin Sharma and Monish Chandiramani
Based: Dubai
Industry: E-grocery
Initial investment: $150,000
Future plan: Raise $1.5m and enter Saudi Arabia next year
Haemoglobin disorders explained
Thalassaemia is part of a family of genetic conditions affecting the blood known as haemoglobin disorders.
Haemoglobin is a substance in the red blood cells that carries oxygen and a lack of it triggers anemia, leaving patients very weak, short of breath and pale.
The most severe type of the condition is typically inherited when both parents are carriers. Those patients often require regular blood transfusions - about 450 of the UAE's 2,000 thalassaemia patients - though frequent transfusions can lead to too much iron in the body and heart and liver problems.
The condition mainly affects people of Mediterranean, South Asian, South-East Asian and Middle Eastern origin. Saudi Arabia recorded 45,892 cases of carriers between 2004 and 2014.
A World Health Organisation study estimated that globally there are at least 950,000 'new carrier couples' every year and annually there are 1.33 million at-risk pregnancies.
SPECS
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Most F1 world titles
7 — Michael Schumacher (1994, ’95, 2000, ’01 ’02, ’03, ’04)
7 — Lewis Hamilton (2008, ’14,’15, ’17, ’18, ’19, ’20)
5 — Juan Manuel Fangio (1951, ’54, ’55, ’56, ’57)
4 — Alain Prost (1985, ’86, ’89, ’93)
4 — Sebastian Vettel (2010, ’11, ’12, ’13)
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
Abu Dhabi Desert Challenge – Rally schedule:
Saturday: Super Special Spectator Stage – Yas Marina Circuit – start 3.30pm.
Sunday: Yas Marina Circuit Stage 1 (276.01km)
Monday: Nissan Stage 2 (287.92km)
Tuesday: Al Ain Water Stage 3 (281.38km)
Wednesday: ADNOC Stage 4 (244.49km)
Thursday: Abu Dhabi Aviation Stage 5 (218.57km) Finish: Yas Marina Circuit – 4.30pm.
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
The finalists
Player of the Century, 2001-2020: Cristiano Ronaldo (Juventus), Lionel Messi (Barcelona), Mohamed Salah (Liverpool), Ronaldinho
Coach of the Century, 2001-2020: Pep Guardiola (Manchester City), Jose Mourinho (Tottenham Hotspur), Zinedine Zidane (Real Madrid), Sir Alex Ferguson
Club of the Century, 2001-2020: Al Ahly (Egypt), Bayern Munich (Germany), Barcelona (Spain), Real Madrid (Spain)
Player of the Year: Cristiano Ronaldo, Lionel Messi, Robert Lewandowski (Bayern Munich)
Club of the Year: Bayern Munich, Liverpool, Real Madrid
Coach of the Year: Gian Piero Gasperini (Atalanta), Hans-Dieter Flick (Bayern Munich), Jurgen Klopp (Liverpool)
Agent of the Century, 2001-2020: Giovanni Branchini, Jorge Mendes, Mino Raiola
