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TAQA's accumulated losses reach AED 1.64bn in 2019

TAQA's accumulated losses reach AED 1.64bn in 2019
Accumulated losses represent 26.98% of the company's capital
TAQA
TAQA
4.32% 0.99 0.04

Abu Dhabi – Mubasher: Abu Dhabi National Energy Company (TAQA) logged AED 1.64 billion accumulated losses in 2019, down from AED 2.651 billion in 2018.

The 2019 accumulated losses now represent 26.98% of the company’s capital, which is worth AED 6.06 billion, compared o 43.70% during the earlier year, according to the company’s disclosure to Abu Dhabi Securities Exchange (ADX).

The company referred that a decline in commodity prices during the 2014-2016 period resulted in impairment losses, mainly as a result of the company’s exposure to the oil and gas industry.

To tackle the accumulated losses, the company received in February an offer from its parent company, Abu Dhabi Power Corporation (ADPC), to transfer certain assets to TAQA in exchange for the issuance of additional shares in TAQA to ADPC, in addition to terminating the land lease agreement between the two companies.

It is noteworthy to mention that in 2019, TAQA reported a 41.2% year-on-year (YoY) drop in its net profits to AED 234 million from AED 398 million in 2018.