Text size:

  • Small
  • Normal
  • Large
Construction work in one of Taqa’s sites in the Netherlands. Courtesy Taqa
Construction work in one of Taqa’s sites in the Netherlands. Courtesy Taqa

Staff cuts at Taqa headquarters in Abu Dhabi

The majority government-owned company employs about 3,300 staff around the world, and 189 will remain at headquarters after the reorganisation.

Abu Dhabi National Energy (Taqa) is trimming 16 per cent of its staff at headquarters, part of a cost-cutting effort at home and abroad.

The cuts at the utility owner and energy investor are targeted at reducing general and administrative costs by at least US$20 million next year.

The majority government-owned company employs about 3,300 staff around the world, and 189 will remain at headquarters after the reorganisation.

“As our business matures, we continue to review our structure to ensure that we have the right people in the right places to meet the challenges in front of us,” said Carl Sheldon, the chief executive. “There are a number of roles that we no longer require as a business and this will result in a reduction in the number of employees in headquarters.”

The retrenchment at headquarters follows the reduction of 162 people from its North American oil and gas business earlier this year, as Taqa sought to centralise operations there to remain competitive amid low domestic gas prices brought about by the shale boom.

That will save the company $28m this year, said Taqa, which is also hoping to reduce its acreage to a focused area about two-thirds its current size to make drilling more efficient.

In Abu Dhabi, Taqa is cancelling vacancies and allowing contractors’ contracts to come to an end. About six people will be moved to roles in other Taqa locations.

“We have tried to minimise the impact of these changes,” said Mr. Sheldon. “But the changes are not driven just by cost saving. They are about positioning Taqa for success and ensuring the corporate centre is fit for purpose.”

After years of far-flung acquisitions, Taqa has focused on consolidating its international holdings, shedding assets such as a power plant in the Caribbean and investing regionally instead in places like the Kurdistan region of Iraq.

Last month Taqa struck a deal to sell its stake in NGT, a Dutch pipeline system, for $240m and confirmed it had shelved plans for a $12 billion Turkish coal mining and power generation project because of spending priorities.

It is also moving towards launching its first initial public offering abroad, listing part of its Moroccan power business to raise $181m.

“We will continue to reshape the portfolio and manage our exposure to ensure we have the right balance of international assets and quality of earnings,” said Mr Sheldon.

“We will concentrate on those businesses where we have a distinctive advantage and that deliver most effectively on the vision of Abu Dhabi and the UAE.”

Shares of Taqa on the Abu Dhabi bourse rose more than 4 per cent yesterday to Dh1.4.

ayee@thenational.ae

Back to the top

More articles


Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Miele coffee maker making Cappuccino at Miele Gallery in Sama Tower in Dubai. The cost of this coffee maker is around Dh 17,000. Pawan Singh / The National

Space-age coffee comes at a price from Miele

Miele have taken the coffee machine to a new level with its Dh17,000 offering that is built into your kitchen.

 The bridge of Seajacks Hydra, as the wind farm installation vessel undergoes finishing touches and testing works at Lamprell’s Hamriyah facility in Sharjah before its planned delivery on June 2, 2014. Jeffrey E Biteng / The National

In pictures: Building the Seajacks Hydra

The Seajacks Hydra, a wind farm installation vessel, is undergoing finishing touches and testing works at Lamprell’s Hamriyah facility in Sharjah before its planned delivery on June 2, 2014.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 The rush of new supply of hotel rooms pushed Dubai occupancy rates down to 87 per cent. Sarah Dea / The National

Dubai hotel room rates rise 10 per cent

The rush of new supply pushed occupancy rates down to 87 per cent, a dip of 2.6 per cent from the previous year. Winter months are the strongest for Dubai hotels, with occupancy and prices falling to half their peaks by July.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National