Taqa reports 2013 loss on impairment of North American assets
ABU DHABI, United Arab Emirates (Bloomberg) -- Abu Dhabi National Energy Co., the government-controlled utility known as Taqa, posted a loss last year and won’t pay a dividend after writing down the value of North American assets. The shares slumped.
The net loss after minority interests was 2.52 billion dirhams ($686 million) after a profit of 649 million dirhams a year earlier, the company said in a statement. Sales fell 7% to 25.8 billion dirhams. Taqa said it took a 3.25 billion-dirham non-cash impairment mainly linked to reserve revisions and lower anticipated production in North America.
“Underlying revenues and cash flow rose year-on-year, while the net result was affected by a one-off, non-cash accounting entry,” CFO Stephen Kersley said in the statement. “Our strong levels of liquidity enable us to continue to fund operations and service our debt obligations on favorable terms.”
Taqa has stakes in businesses generating power and producing crude oil and natural gas in the Middle East, North Sea, India and North America. It expanded this year by adding two hydroelectric power plants in India and last year took over oilfield operations in northern Iraq and UK crude and gas deposits from BP Plc.
Carl Sheldon, the company’s CEO since October 2011, will step down next month. Edward LeFehr will take over the new role of COO from his current position as head of Taqa’s North American business. The company cut jobs at its Canadian business and sold some holdings there last year as North American natural gas prices brought the company less profit than expected, Sheldon and Kersley said in November.
The shares dropped 5.7% at open in Abu Dhabi today.