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UAE energy firm TAQA posts wider Q3 loss on oil price slump

Firm has reported losses in the preceding five quarters

Loss comes despite a heavy cost-cutting programme in 2015

Total revenue fell to AED4.2bn from AED4.83bn in same period last year

Abu Dhabi National Energy Co (TAQA), the state-owned oil explorer and power supplier, reported on Wednesday a wider loss for the third quarter caused by the drop in oil prices.

TAQA, majority-owned by Abu Dhabi’s government, made a net loss attributable to equity holders of AED524 million ($143m) in the three months ended September 30, according to a bourse filing.

This compares with a net loss of AED416m in the previous-year period.

Oil woes persist

Like most global oil firms, TAQA has struggled in recent quarters against a backdrop of lower oil prices, reporting losses in the preceding five quarters.

This comes despite a heavy cost-cutting programme instigated by the company. It said in August it had made more than AED6.5 billion of cash cost and capital expenditure savings under a transformation programme that was launched in 2015.

Revenues from oil and gas amounted to AED1.18bn in the three months that ended on September 30, compared with roughly AED1.49bn in the same period a year earlier.

Total revenue fell to AED4.2bn, from AED4.83bn in the corresponding period of last year.

Oil and gas production fell by 1.9 per cent year-on-year to 142,200 barrels of oil equivalent per day during the first nine months of 2016, which the company attributed to the result of capital expenditure reductions and the shut-in of the non-operated Brae Alpha platform in the first quarter.