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Taqa’s H1 net income surges 12.3% to Dh4.4b

Adjusted Ebitda was Dh10.9 billion, 4% higher than the first half of 2023

Published: Wed 14 Aug 2024, 8:55 PM

By
Issac John

Taqa recorded a 2.0 per cent rise in revenue to Dh27.2 billion YoY during the first six months. — File photo

Abu Dhabi National Energy Company (Taqa) reported on Wednesday a 12.3 per cent year-on-year increase to Dh4.4 billion in net income for the first half of 2024.

The listed utility major recorded a 2.0 per cent rise in revenue to Dh27.2 billion YoY during the first six months due to the contribution from Sustainable Water Solutions Holding Company (SWS Holding), which also increased adjusted Ebitda and net income.

Taqa said in a statement that adjusted Ebitda was Dh10.9 billion, 4.0 per cent higher than the first half of 2023. Net income of Dh4.4 billion — up Dh0.5 billion (12.3 per cent) compared to the prior year — excludes one-off items, but marks a decrease of Dh9.2 billion when these one-off items are included, the integrated utilities companies group said.

Mohamed Hassan Alsuwaidi, chairman of Taqa, said the group’s continued growth during the first half of 2024 is a result of its unwavering commitment to unlocking long-term value for stakeholders. “The group has consistently achieved strong financial results, underpinned by an improved credit rating of AA by Fitch, demonstrating the resilience of its balance sheet. Taqa’s focus on executing projects that will further cement its leading market position remains steadfast. A notable milestone is the upcoming integration of SWS Holding, which will contribute to Taqa’s transformation into a vertically integrated utility leader with expanded expertise in water treatment,” said Alsuwaidi. “Looking ahead, Taqa remains dedicated to sustainable growth and progress that balances shareholder benefits with our stewardship of the environment and communities.”

Jasim Husain Thabet, Taqa’s group chief executive officer and managing director, said the group’s robust financial and operational performance in the first six months of 2024 was “driven by the sustained growth across the Transmission & Distribution business, and bolstered by the welcome addition of SWS Holding.”

Thabet noted that those reliable sources of income align with Taqa’s ambition to be an integrated utility champion, providing low-carbon power and water to the communities it serves and creating value for stakeholders. During this period, Tawa also remained focused on delivering on key strategic projects.

In the first half, capital expenditure surged 91 per cent to Dh3.8 billion YoY, driven mainly by construction progress in the Mirfa 2 Reverse Osmosis and Shuweihat 4 Reverse Osmosis desalination projects as well as timing and phasing of project execution within the T&D business.

Free cash flow generation dropped to Dh4.3 billion, primarily reflecting capital expenditure and working capital movements. The group’s gross debt was Dh58.6 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 Dh1.5 billion. This decrease was partially offset by an additional Dh1.5 billion in project debt from the acquisition of SWS Holding and Dh0.6 billion from new project debt to fund the development of the M2 RO and S4 RO projects.

Taqa in partnership with JERA, signed a power and steam purchase agreement with SATORP, a joint venture company owned by Saudi Aramco and TotalEnergies, to develop an industrial steam and electricity cogeneration plant in Saudi Arabia, Thabet said. “Additionally, Taqa along with its partners achieved financial closing of the Juranah Independent Strategic Water Reservoir Project in Saudi Arabia, aligning with its strategy to expand the transmission and distribution business beyond the UAE.”