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Taqa Group reports Dh6.3 billion net income for the first nine months of 2024

Net income of Dh6.3 billion for nine months, a 13.2% increase

Published: Thu 14 Nov 2024, 3:04 PM

Updated: Thu 14 Nov 2024, 3:05 PM

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Abu Dhabi National Energy Company PJSC (Taqa) on Thursday announced group revenues of Dh41.7 billion, 6.0 per cent higher than the prior year period, mainly due to the contribution from Taqa Water Solutions and Transmission & Distribution.

Ebitda was Dh16.9 billion, an increase of Dh1.4 billion (9.0 per cent) compared to the prior year period, excluding the Dh10.8 billion related to the acquisition of a 5 per cent stake in Adnoc Gas. Including this one-off item, Ebitda saw a decrease of Dh9.4 billion.

Net income was Dh6.3 billion, up Dh0.7 billion (13.2 per cent) compared to the prior year, excluding one-off items: Dh10.8 billion related to the acquisition of a 5 per cent stake in Adnoc Gas and an Dh1.1 billion deferred tax charge due to the UAE corporate tax introduction. Including these one-off items, net income saw a decrease of Dh8.9 billion.

Capital expenditure was Dh6.1 billion, 85.4 per cent higher than prior year driven mainly by construction progress in the Mirfa 2 Reverse Osmosis (M2 RO) and Shuweihat 4 Reverse Osmosis (S4 RO) desalination projects, timing and phasing of project execution within T&D and the inclusion of Taqa Water Solutions.

Free cash flow generation amounted to Dh2.9 billion, Dh7.3 billion lower than the previous year, primarily reflecting increased investments to Masdar, capital investment across Generation, Transmission & Distribution and Taqa Water Solutions and the acceleration of decommissioning activities within O&G.

Gross debt was Dh60.6 billion, down from Dh61.7 billion at the end of 2023, primarily due to the repayment of Dh3.5 billion of matured corporate bonds and scheduled loan repayments of Dh2.2 billion. However, these reductions were partially offset by new debt, including Dh2.4 billion drawdown from the Group’s revolving credit facility, Dh1.5 billion in project debt from the acquisition of SWS Holding, and Dh1.0 billion to fund the construction of the M2 RO and S4 RO desalination projects.

In September, Taqa announced the merger of its distribution businesses Abu Dhabi Distribution Company (ADDC) and Al Ain Distribution Company (AADC) under a single new brand – Taqa Distribution – to serve customers throughout the Emirate of Abu Dhabi. The merger sets Taqa up for the future, creating a business with the scale and capability to unlock even greater opportunities for operational excellence and growth, enhancing customer experience and strengthening internal capabilities.

In August, Taqa’s generation business announced the financial closing of Najim Cogeneration Company Limited, a new industrial steam and electricity cogeneration plant that will produce electricity and steam for a petrochemical complex located in Jubail in the Eastern Province of the Kingdom of Saudi Arabia. Taqa will own 51 per cent of the plant, with Jera owning the remaining 49 per cent. Taqa and Jera will also handle the operation and maintenance of the plant. The plant will supply up to 475 MW of power and approximately 452 tons per hour of steam using advanced combined cycle gas-fired technology to SATORP, a joint venture company owned by Saudi Arabian Oil Company (“Saudi Aramco”) and TotalEnergies.

In October, Masdar completed the acquisition of a 50 per cent stake in Terra-Gen Power Holdings II, one of the largest independent renewable energy producers in the US from Energy Capital Partners. Terra-Gen’s gross operating portfolio currently comprises 3.8GW of wind, solar and battery storage projects, including 5.1GWh of energy storage facilities across 30 renewable energy sites throughout the US. This acquisition will significantly contribute to Masdar’s goal of reaching 100GW of global capacity by 2030.

In August, Taqa completed the sale of its stake in the Atrush oil field in the Kurdish Region of Iraq. Taqa is also making progress in the UK, transitioning its focus towards safe and efficient decommissioning in the North Sea, with the cessation of production at its North Cormorant, Cormorant Alpha, Eider and Tern platforms in 2024. This marked the end of all hydrocarbon production in the Northern North-Sea.

Oil & Gas average production volumes decreased to 102.2 thousand barrels of oil equivalent per day (mboepd), a decrease of 5.6 per cent compared to the comparative period. This decrease is mainly due to the natural decline in production and decommissioning activity, primarily as a result of the cessation of production of four UK assets.

Jasim Husain Thabet, Taqa’s group chief executive officer and managing director, commented: “The strength of Taqa’s core businesses, combined with its disciplined approach and commitment to growth, is reflected in our robust financial and operational performance over the first nine months of 2024. Our improved credit rating of AA from Fitch continues to reflect our financial resilience, and as we look forward, we remain focused on capturing growth opportunities that align with our vision and enhance long-term value for all stakeholders.”



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