Taqa swings to first quarter loss amid coronavirus pandemic – The National

Taqa swings to first quarter loss amid coronavirus pandemic – The National

The company reports a loss of Dh1.7bn for the first quarter as it booked impairments linked to lower oil price expectations

















Abu Dhabi National Energy Company swung to a first-quarter loss as revenue decreased and impairment losses climbed amid lcoronavirus pandemic. Ravindranath K / The National







Abu Dhabi National Energy Company, or Taqa as it is better known, swung to a first-quarter loss as revenue fell and the company booked impairment losses due to a collapse in energy demand induced by the coronavirus pandemic.



The state-owned oil company reported a loss of Dh1.7 billion for the three months ending March 31, compared to a profit of Dh6 million a year earlier, it said in a statement to Abu Dhabi Securities Exchange, where its shares trade. Revenue for the period fell 9 per cent to Dh4bn and it declared Dh2bn worth of impairment losses.



"As a result of the significant and prolonged effects on oil demand due to Covid-19, and in line with peers, the group reduced its 2020 and 2021 oil price assumptions, requiring a write-down of the group's carrying amounts of certain oil-specific assets with a post-tax, bottom-line impact of