Taqa reports net income of Dhs8 billion for the year 2022

Abu Dhabi National Energy Company (Taqa) reported positive financial results for the year ended Dec.31, 2022. Taqa delivered a very strong performance during the year, which was underpinned by the execution of it its growth strategy, its contracted utilities business and an uplift in commodities prices.

Group revenues were to the tune of Dhs50 billion, 10.3 per cent higher than the prior-year period, primarily due to higher commodity prices within the Oil and Gas segment. Adjusted Ebitda (Earnings before interest, taxes, depreciation, and amortisation) was Dhs20.8 billion, up 6.7 per cent.

Net income (Taqa-share) was Dhs8 billion, an increase of Dhs2 billion, with greater contribution from the Oil and Gas segment and lower depreciation expense supporting bottom-line growth. Capital expenditure was Dhs3.8 billion, 20.1 per cent lower than previous year.

Taqa also made significant investments of Dhs4.5 billion in 2022 (2021: nil), relating to the acquisition of Masdar and the project to power and decarbonise Adnoc’s offshore production operations. Free cash flow generation remained strong for the year at Dhs13.8 billion, albeit 22.3 per cent lower compared to the previous year, mainly due to payment for Taqa’s investment in Masdar.

Gross debt was Dhs61.7 billion, down from Dhs65 billion at the end of 2021, further improving the Group’s credit metrics.

In terms of operational highlights, the Group’s transmission network availability for power and water of 98.6 per cent was marginally higher, compared to 98.4 per cent during the previous year.

Generation global commercial availability of 98.1 per cent, with the UAE plants in particular, contributed to the slight increase, compared to 97.3 per cent in the previous year.

Oil and Gas average production volumes have increased to 123,800 barrels of oil equivalent per day (boepd), an increase of 1.1 per cent on 2021.

Mohamed Hassan Alsuwaidi, Taqa’s Chairman, commented, “Taqa’s record results in 2022 are a continuation of a positive trajectory that is anchored in compelling market opportunities, investment grade credit ratings and higher ESG ratings from global agencies. We continued to make steadfast contributions to the UAE’s decarbonisation goals, accelerating the energy transition and driving sustainable growth.

“As part of these efforts, the company acquired a controlling stake in national clean energy champion Masdar, which is set to allow Taqa to reach its 2030 objective of having more than 30 per cent of its generation portfolio come from renewables ahead of target. With an exceptional track record, a market-leading position and a bright outlook, Taqa is ideally positioned to deliver on its strategic goals for 2030 and beyond.”

Jasim Husain Thabet, Taqa’s Group Chief Executive Officer and Managing Director, commented, “In 2022, Taqa maintained its strategic focus, executing on its growth and ESG ambitions, demonstrating tangible progress on the targets we have set and showing our stakeholders that we deliver on our promises. Highlights include progressing with our growth strategy with the acquisition of Masdar, which is set to become one of the world’s largest clean energy companies.

“We took steps to enter a new market in Uzbekistan, we reached financial close for a key decarbonisation project for Adnoc’s offshore production facilities, and we announced our intention to acquire EGA’s power assets and connect the company to the Abu Dhabi grid. Both the Adnoc and EGA projects are examples of our role in supporting decarbonisation of hard to abate industries, underscoring why we joined the IRENA Decarbonisation Alliance during the year and reaffirming our commitment to our ESG Strategy,” he explained. Upon approval of the financial results, Taqa’s Board of Directors also proposed a final cash dividend of 3.3 fils/share (AED3,713 million).

This will be the fourth and final dividend payment planned for the financial year of 2022 bringing total dividends for the year to 5.1 fils/share (Dhs 5,738 million).

Established in 2005, Taqais a diversified utilities and energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange. Taqa has significant investments in power and water generation, transmission and distribution assets, as well as upstream and midstream oil and gas operations.

The Company’s assets are in the United Arab Emirates as well as Canada, Ghana, India, Iraq, Morocco, Oman, the Netherlands, Saudi Arabia, the United Kingdom and the United States.

This focus is demonstrated in our strong set of financial results which allow us to continue to invest in delivering against our ambitions without compromising on strong returns.

Taqa remains firm in its commitment to its growth and sustainability journey, whilst delivering value for its shareholders and stakeholders alike and I am optimistic about the path for the business in 2023.”