The Company reduced its total debt by AED 4.0 billion, and reduced interest paid by AED 163 million during 2018. The robust financial performance has resulted in improved leverage ratios where Net Debt-to-EBITDA multiple improved to 6.5 from 7.3 the year before.
TAQA also reported a strong liquidity position of AED 13.1 billion, with cash and cash equivalents of AED 3.4 billion and undrawn credit facilities of AED 9.7 billion, giving the company flexibility to address opportunities and challenges as they arise.
Commenting on the results, TAQA’s Chairman, H.E. Saeed Mubarak Al-Hajeri, said: “Despite challenging business and economic conditions, TAQA’s financial and operational performance remained impressive throughout the year. We continued to define and implement a growth strategy that took into account emerging challenges while also capitalizing on the opportunities offered by the evolving power, water, oil and gas industries.”
Operationally, TAQA’s power and water achieved steady performance with gross power generation of 89,922 GWh and technical availability increasing to 93.1 percent from 92.1 percent last year. Gross water desalination reached 246,556 million imperial gallons (MIG) versus 249,469 MIG on the prior year.
The Oil and Gas business achieved average production of 123,100 boe/d, a 2.4 percent decline from 2017 as the company mitigated natural base decline of existing assets with investment in new development projects, the most notable being the Atrush field in Iraq which achieved entitlement production of 3,855 boe/d over 12 full months of operations in 2018.
Saeed Hamad Al Dhaheri, CEO of TAQA commented on the performance and said: “In a year that businesses confronted challenges emerging from the global energy transition, TAQA has delivered strong financial and operational performance in 2018 with profits up year-on-year and revenue increasing by approximately AED 1.0 billion. In 2018, we successfully achieved a debt reduction of AED 4.0 billion, which was the result of a robust cost rationalization exercise and operational improvements executed across the organisation.”
The impressive financial and operational performance registered by TAQA was driven by a combination of factors: strong performance of our Power and Water division; enhanced oil and liquid prices; and the management’s dedication towards delivering maximum shareholder value.” Al Dhaheri added.
The full Q4 2018 and 2018 financial statements can be found at https://www.taqaglobal.com/investors/quarterly-reports/2018
Join the conference call on Thursday, March 21 at 3:30pm (UAE time):
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Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA). TAQA has investments in power generation, water desalination, oil and gas exploration and production, pipelines and gas storage. The company's assets are located in Canada, Ghana, India, Iraq, Morocco, Oman, Saudi Arabia, the United Arab Emirates, Netherlands, United Kingdom and United States.
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Cautionary statements relevant to forward-looking information:
This news release contains forward-looking statements relating to Abu Dhabi National Energy PJSC (TAQA) operations that are based on management’s current expectations, estimates and projections about the petroleum, chemicals and other related industries. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “will,” “budgets,” “outlook,” “trends,” ”guidance,” “focus,” “on schedule,” “on track,” "is slated,” “goals,” “objectives,” “strategies,” “opportunities,” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, TAQA undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
© Press Release 2019