Abu Dhabi Oil Company Taqa Slashes 22% Jobs amid Losses due to Falling Oil Prices
Published By : 13 Aug 2015 | Published By : QYRESEARCH
Abu Dhabi based company Taqa has cut nearly 22 per cent of its employee base to survive the losses incurred due to the constantly falling oil prices in the global market. Though the global oil market has observed record demand, but the glut is making for the declining prices. Amid the difficult circumstances, all major oil companies have taken drastic majors to cut costs, Taqa’s plans to reduce its employee base is just another page of the story.
Taqa has planned to cut its spending by US$681 million this year after having reduced capital expenditures by nearly 1.05 billion dirhams in the first half of the year. Company’s headcount at its Abu Dhabi headquarter is currently less by nearly 32 per cent since July of the last year.
After the enormous reductions in Brent crude price, which slumped nearly 48 per cent the last year and is still going down another 13 per cent as far as this year is considered, major oil producers are cutting costs in serious ways.
In the first six months of this year, Taqa’s oil and gas production remained nearly 150,000 barrels oil, which is about 5 per cent less as compared to the earlier year. The company also observed a reduction in its revenues to 48% as compared to the earlier year.
Taqa’s CEO, Edward LaFehr, said that while the current environment of reduced commodity prices has impacted the whole industry, Taqa’s results show that the company is delivering on its cost transformation program.
Taqa had reported a second quarter loss of nearly 421 million dirhams as compared to rise in revenues by 239 million dirhams a year back. Total revenues of the company have reduced to 28 per cent to nearly 4.7 billion dirhams.