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TAQA announces net loss for 2013

Abu Dhabi energy investor says one-off impairment caused loss.

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A TAQA plant in Turkey.
A TAQA plant in Turkey.

TAQA announced a net loss of $680.6mn (AED 2.5bn) in 2013 as a result of a one-off, non-cash impairment related to the value of the company’s North American oil and gas assets.

“The impairment was realised as a result of a reduction in the long-term assumptions for natural gas prices in North America and is in line with recent write-downs by other natural gas producers in the region. The impairment does not affect the company's ability to continue operations or service its debt obligations,” a statement from TAQA stated.

The company stressed that it continues to enjoy a strong financial position with high levels of liquidity and has planned capital expenditure in excess of $2bn in 2014. Underlying revenues grew 3% year-on-year to $5.7bn (AED 21.1bn).

"Underlying revenues and cash flow rose year-on-year, while the net result was affected by a one-off, non-cash accounting entry. Our strong levels of liquidity enable us to continue to fund operations and service our debt obligations on favourable terms," said Stephen Kersley, TAQA’s chief financial officer.

Total revenues fell by 7% to $7bn (AED 25.8), compared to $7.6bn (AED 27.8bn) for the same period in 2012.

In 2013, the company hit key milestones on its large construction and growth projects, with several new facilities poised to come on stream over the next 18 months in the Netherlands, Morocco, Ghana and Iraq.

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