TAQA Group posts Dhs16.7bn in full-year net income

TAQA Group, also known as Abu Dhabi National Energy Company, has posted Dhs16.7bn in full-year net income, an increase of Dhs8.6bn, driven by a one-off gain of Dhs10.8bn recognised on the acquisition of a 5 per cent shareholding in ADNOC Gas.

The Abu Dhabi-based utility firm said its net income excluding these one-off items came in at Dhs7bn, down 13 per cent from a year earlier due to a lower contribution from its oil and gas business.

The group’s earnings before interests, taxes, depreciation and amortisation dropped by 6 per cent to Dhs19.6bn due to a decrease in oil and gas revenues on the back of lower prices and ongoing OPEC+ production cuts.

However, TAQA’s annual revenues jumped by 3 per cent to Dhs51.7bn as higher pass-through bulk supply tariffs and transmission use of systems within the group’s transmission and distribution segment offset a decline in oil and gas revenue.

TAQA reports AED 16.7 billion for full year 2023 net income, reiterating TAQA’s strategic positioning across its markets, particularly in Abu Dhabi as a local utilities champion as it targets growth ambitions underpinned by revised targets.#TAQA #PoweringaThrivingFuture

— TAQA (@TAQAGroup) February 14, 2024

“TAQA’s strategic positioning across its markets, particularly in Abu Dhabi as a fully integrated local utilities champion, remains key to our robust results,” the company’s chairman Mohamed Hassan Alsuwaidi said in a statement.

Alsuwaidi said the utilities company’s achievements in 2023 serve as a foundation for further growth, which will include organic and inorganic expansion as well as substantial investment into power and water capacity.

The company’s board proposed a final cash dividend of 2.0 fils/share (approximately Dhs2.2bn), including a variable dividend of 0.7 fils/share (approximately Dhs800m). The final dividend brings the total payout for the year to 3.95 fils/share (approximately Dhs4.4bn).

TAQA’s free cash flow stood at Dhs13.9bn, consistent with the previous year.

TAQA accelerates growth

The group’s annual capital expenditure was Dhs5.1bn, a 34 per cent increase from the previous year as project execution picked up pace in the group’s transmission and distribution segment.

TAQA aims to deliver 150 gigawatts (GW) of gross power generation by 2030, of which 100 GW is renewable capacity through Masdar.

The company also plans to reach a net power capacity of 50 GW by the end of the decade and a water generation capacity of 1,300 MIGD imperial gallons per day (MIGD), with two-thirds of this capacity coming from efficient and low carbon reverse osmosis (RO) technology.

“Renewable energy is expected to constitute over 65 per cent of the generation mix by 2030 versus 45 per cent as at the end of 2023,” the company said in the statement.

Building on its 2021 growth strategy, TAQA plans to invest Dhs75bn by 2030 to achieve its ambitious expansion programme. This is comprised of a Dhs40bn expenditure on UAE-based transmission and distribution networks while the remaining Dhs35bn is allocated for the generation business.

Read: ADNOC, TAQA close $2.2bn financing for water project