Abu Dhabi National Energy Co (TAQA), the state-owned oil explorer and power supplier, said on Wednesday it would slash its capital expenditure plans and costs after posting big losses in the fourth quarter on lower oil prices.
The company, 75 percent owned by the government of Abu Dhabi, would reduce its capex budget for this year by 39 percent on 2014 levels -- the equivalent of 2.5 billion dirhams ($680.7 million) -- and would implement a cost-cutting plan that would save 1.5 billion dirhams over the next two years, it said in its results statement.
Energy companies around the world have scaled back the amount of cash for expansion in response to an oil price which is down by around half since its peak in June last year, which has also pushed them to trim costs and focus on short-term returns.
TAQA's move comes after it reported a net loss of 3.63 billion dirhams for the final three months of 2014, according to Reuters calculations, wider than the 2.6 billion dirhams loss it reported in the corresponding period of the previous year.Something tells me Abu Dhabi is not to happy with Saudi Arabia. Along with Venezuela, Russia, and a half dozen other countries.