Tax bill takes 27 per cent toll on Taqa profit

Taqa third-quarter profit fell 27 per cent as it was saddled with a higher tax bill.

The Abu Dhabi oil exploration and power company reported a profit of Dh107 million in the three months to the end of September.

Taqa, also known as Abu Dhabi National Energy Company, is looking to offset its losses by decreasing general and administrative costs.

“Our focus on operational efficiencies and cost reduction has led to an 11 per cent reduction in unit operating costs in North America,” said Ryan Wong, the chief financial officer.

Taqa’s North American operations focus on conventional oil and gas exploration and production. It has proven plus probable reserves at 443.5 million barrels of oil equivalent (boe), with a total average daily production of 87,100 boe a day.

Slashing operating costs and liquidating non-core assets have helped to reduce the company’s debt.

“We have reduced debt by over Dh3 billion using excess cash flow and proceeds from the disposal of non-core assets, which exceeded Dh500m during the period,” Mr Wong said.

Taqa has focused its capital investment strategy, which has resulted in lower capital expenditures. The company said that fourth quarter capex was currently being reviewed as a result of oil prices plummeting as Brent crude traded near its lowest close in four years.

Taqa’s chief operating officer Edward LaFehr said that the firm was focusing more on capital investment across the board in addition to cost-cutting measures. “These efforts are even more important now in today’s challenging commodity price environment,” he added.

lgraves@thenational.ae

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