Taqa net income up by AED 8.5 billion | Arabian Weekly

Taqa net income up by AED 8.5 billion | Arabian Weekly

Arabian Weekly Staff

Abu Dhabi National Energy Company (Taqa), one of the largest listed integrated utilities in Europe, the Middle East and Africa, unveiled revised growth targets that will see the group accelerate the development of new power and water generation assets.

Building upon its 2021 growth strategy, the revised growth targets see Taqa aiming for 150 gigawatts (GW) of gross power generation by 2030, up from the previous target of 50 GW, with around 65% of its generation capacity coming from renewable power sources. Previously, Taqa had committed to a target of 30%; however, with its leading stake in Masdar’s renewable energy operations, the Group has upgraded this target. On a standalone basis, Masdar’s clean generation capacity is expected to reach 100 GW by 2030. In terms of net power generation capacity, Taqa is set to reach 50 GW by 2030, up from its current net capacity of 17 GW.

Taqa is also ramping up its growth targets for water generation with a plan to increase the Group’s water generation capacity to 1,300 MIGD, with two-thirds of this capacity coming from the highly efficient and low carbon reverse osmosis (RO) technology. Currently, TAQA’s desalination capacity sits at just over 1,180 MIGD.

To facilitate the development of future projects and associated infrastructure networks, TAQA is planning to invest AED 75 billion until 2030 towards power and water capacity expansion and UAE-based transmission and distribution networks. This figure includes the previously committed spend of AED 40 billion between 2021 and 2030 to grow its UAE transmission and distribution networks.

Taqa is also actively seeking to expand its Transmission and Distribution business beyond the UAE through both inorganic and organic opportunities.

In the first nine months of 2023, the group delivered a solid financial performance driven by strong and stable returns from its long-term contracted utilities business whilst it has remained focused on delivering its growth strategy.

Group revenues were AED 39.5 billion, unchanged versus the prior-year period, as higher pass-through bulk supply tariffs and transmission use of system within the Transmission and Distribution segment offset a decline in Oil and Gas revenue.

Adjusted EBITDA was AED 15.3 billion, down 11%. This fall was led by a decline in contribution from the Oil and Gas segment on the back of lower realised oil and gas prices and reduced production.

Net income was AED 15.0 billion, an increase of AED 8.5 billion, driven by a one-off gain of AED 10.8 billion recognised on the acquisition of a 5% shareholding in ADNOC Gas, in part offset by a one-off AED 1.2 billion deferred tax liability associated with the introduction of UAE corporate income tax from 1 January 2024. Net income excluding these one-off items was AED 5.4 billion, 17% lower than the prior period, mainly due to lower contribution from the Oil and Gas segment.

Capital expenditure was AED 3.3 billion, 34% higher than the prior year, as project execution picked up pace in the Transmission and Distribution segment.

Free cash flow generation was AED 10.2 billion, 20% lower compared to the previous year. The decline was driven by lower contribution from the Oil and Gas segment.

Gross debt was AED 61.7 billion, unchanged on the amount outstanding at the end of 2022.


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