North Sea operator Taqa took a big hit on US production to post a £416million loss for 2013 – despite seeing output from its UK assets rise.
The Abu Dhabi-owned energy group’s production in the North Sea rose 12% year on year to 47,000 barrels despite suffering a lengthy shut-in at Cormorant Alpha.
But an impairment charge of more than £528million, incurred largely through the fall of gas prices from North America, saw the company post losses after last year’s £107million profit.
The Emirati group, which bought the Harding, Maclure and Devenick fields fields from BP in a £600million deal in 2012, said the acquisitions had been performing well, with fourth-quarter production at a record 68,400 barrels of oil equivalent per day.
The company said it expected first oil from the Morrone field in the North Sea to be produced later this year, while output has now begun at the 30million barrel Cormorant East field.
But increasing costs in the North Sea saw operating expenses rise to more than £825million, and revisions to reserve levels and production shortfalls in the USA added up to a loss.
Despite the reverse in profits, outgoing chief executive Carl Sheldon – who steps down next month – took heart from the record production levels from the firm.
“Taqa has grown into Abu Dhabi’s leading international operator of strategic national energy infrastructure,” he said.
“We achieved record levels of oil and gas production, while underlying revenues from our power and water business rose strongly.
“The company is well positioned to take advantage of the unique opportunities ahead.”
Last month the firm announced Mr Sheldon would step down from his role next month. Vice-chairman Abdulla Saif Al Nuaimi will take more control of the company in a part-time executive position.
Taqa, which has a base in Westhill, said Mr Al Nuaimi would assume responsibility for the Abu Dhabi firm’s governance and strategic relations.
But other top-level duties will go to Edward LaFehr, an experienced oil and gas executive who leads Taqa’s North American operation and is taking on the newly-created role of chief operating officer.