UAE’s TAQA Group posts Dhs2.1bn net income in Q1 2024

TAQA Group, also known as Abu Dhabi National Energy Company, posted a Dhs9.5bn decrease in quarterly net income to $572m (Dhs2.1bn), down from Dhs11.6bn for the corresponding period a year ago due to “one-off items recognised in 2023.”

The utility firm said excluding “these one-offs”, its net income increased by Dhs0.1bn, up 6.9 per cent.

Oil and gas operations contributed a net income of Dhs436m, down Dhs302m, primarily reflecting lower commodity prices and production volumes. “Oil & Gas average production volumes decreased to 106,900 barrels of oil equivalent per day, a decrease of 5.4 per cent compared to Q1 2023,” the utility giant said in a bourse filing.

The group’s revenue in the three months ended March 31 jumped by 5.3 per cent to Dhs13.7bn, supported by the contribution from SWS Holding, which TAQA acquired in 2023 from Abu Dhabi Power Corporation – the utility firm’s majority shareholder.

The company’s earnings before interests, taxes, depreciation and amortisation rose by 4.9 per cent to Dhs5.5bn.

Its free cash flow stood at Dhs0.3bn, a Dhs4bn lower than the previous year, hurt by increased investments into Masdar to fund renewable energy projects and capital expenditure on the development of Mirfa 2 and Shuweihat 4 Reverse Osmosis desalination projects.

TAQA’s gross debt came in at Dhs62.5bn in the first quarter of the year, up from Dhs61.7bn at the end of 2023.

TAQA expands global footprint

“The first quarter of 2024 marked yet another significant milestone for TAQA’s commitment to expanding its international footprint,” said Jasim Husain Thabet, TAQA’s group CEO and managing director.

“We joined forces with industry JERA and SATORP, committing to the development of a state-of-the-art power and steam cogeneration plant in Jubail, Saudi Arabia as well as being part of the consortium that won the Juranah project, to support water security in Makkah.”

The Amiral cogeneration plant is being developed by an entity owned by TAQA (51 per cent) and JERA (49 per cent) on a 25-year build, own, and operate basis extendable by five years.

Furthermore, the Abu Dhabi-listed company confirmed in April that it is in talks with the three largest shareholders of Naturgy over a possible takeover of the Spanish energy firm.

TAQA is also in talks with CVC and GIP, each owning more than 20 per cent of Naturgy with a combined value of some $9bn, to acquire their shares in Naturgy.

Though the utility giant said there was no guarantee a deal would happen, it plans to invest Dhs75bn by 2030 to achieve its ambitious expansion programme.

Read: TAQA confirms talks with Naturgy shareholders on takeover