Abu Dhabi’s government intervenes to support Taqa

The Abu Dhabi National Energy Company, saw its share price rise by 15 per cent over one week when the government of Abu Dhabi interceded to buttress the company’s balance sheet after its oil and gas business took a massive hit.

The ADX-listed majority owner of a series of large desalination facilities in Abu Dhabi owns a 54 per cent of stakes in eight separate, independent water and power projects (IWPPs), which all have a total desalination capacity of 4.2 million m³ a day. However, because of an impairment charge linked to its oil and gas assets located worldwide, the company disclosed a net loss of AED19 billion (US$5.17 billion) for the year 2016.

The state-owned Abu Dhabi Water & Electricity Authority (ADWEA) passed over land surrounding the IWPPs valued at AED18.7 million (US$5.09 million) to Taqa’s balance sheet in answer, and raised its equity stake in Taqa from 52.38 per cent to 74 per cent.

Source: Gulf News