Abu Dhabi’s TAQA Group posts Dhs4.4bn in first-half net income

TAQA Group, also known as Abu Dhabi National Energy Company, reported a net profit of Dhs4.4bn for the January-June period, a 12.3 per cent (Dhs0.5bn) increase compared to the corresponding period a year ago, excluding one-off items.

The utility firm said excluding “these one-offs”, its net income plunged by Dhs9.2bn.

TAQA’s revenue in the six months ended June 30 rose by 2 per cent to Dhs27.2bn, supported by the contribution from SWS Holding, which is also attributed to the growth in earnings before interests, taxes, depreciation and amortisation (EBITDA) and net income.

The group acquired SWS Holding from Abu Dhabi Power Corporation – the utility firm’s majority shareholder – in 2023.

The Abu Dhabi-listed firm said its EBITDA reached Dhs10.9bn, a 4 per cent increase compared to the first half of 2023.

“TAQA’s robust financial and operational performance in the first six months of 2024 was driven by the sustained growth across the transmission and distribution business and bolstered by the addition of SWS Holding,” said Jasim Husain Thabet, TAQA’s group CEO and managing director.

“The reliable sources of income align with the group’s ambition to be an integrated utility champion, providing low-carbon power and water to the communities it serves and creating value for stakeholders.”

TAQA’s free cash flow in H1 2024 stood at Dhs4.3bn, a Dhs2.1bn decrease from the previous year, hurt by capital expenditure on the development of Mirfa 2 (M2) and Shuweihat 4 Reverse Osmosis (RO) desalination projects.

The firm reported a 91 per cent surge in capital expenditure during the January-June period, reaching Dhs3.8bn. The increase was primarily driven by advancements in the construction of the M2 and S4 RO desalination projects, as well as the timing and phasing of project execution within its transmission and distribution business.

Meanwhile, its gross debt decreased to Dhs58.6bn in the first half of the year, down from Dhs61.7bn at the end of 2023. TAQA credited this reduction to the repayment of Dhs3.5bn in matured corporate bonds and the scheduled repayment of Dhs1.5bn in loans.

However, the utility giant said the decrease was partially offset by Dhs1.5bn in project debt from the acquisition of SWS Holding and Dhs0.6bn from new project debt to fund the development of the M2 and S4 RO projects.

TAQA, Gulf Investment Corporation and Vision Invest secured Dhs1.5bn in funding for the Juranah independent water reservoir project (ISWR-1) in Makkah, Saudi Arabia in June. The Abu Dhabi-based firm and Japan’s JERA signed an agreement with Saudi Aramco Total Refining and Petrochemical Company (SATORP) in March to develop a steam and electricity cogeneration plant.

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