Abu Dhabi National Energy Company (TAQA) has announced a robust Q1 performance ending on March 31st, with a net income of AED 11.6B (TAQA share), up by AED 9.6B.
This was mainly driven by a one-time gain from the acquisition of a 5% shareholding in ADNOC Gas. TAQA reported group revenues of AED 13.1B, a 6% increase from the prior-year period, primarily due to higher pass-through bulk supply tariffs and transmission use of the system within the Transmission and Distribution segment, according to WAM.
Additionally, the company reported a capital expenditure of AED 1.1B, a 26% increase compared to the previous year. The free cash flow generation was AED 4.3B, a 31% increase compared to the previous year, while gross debt was reported at AED 59.8B, down from AED 61.7B at the end of 2022.
Speaking on the occasion, Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, said, “TAQA Group has closed a positive first quarter for 2023 with a significant boost to our net income from our new stake in ADNOC Gas. Outside of this, the company has made strong progress in delivering on our growth strategy alongside a steady financial performance.”
“On the growth front, we started the year by expanding our stake in Taweelah B IWPP and further strengthened our capabilities by expanding into the plant’s operations & maintenance, a key growth area for our business. We partnered with Engie to develop the Mirfa 2 RO plant, delivering 120 MIGD of desalinated water. This plant is another important step in expanding energy-efficient RO technology in our desalination fleet as we promised.”
“In addition, shareholders approved a new dividend policy for 2023 – 2025 which is based on a combination of fixed and variable dividends and will offer attractive returns to our shareholders and is in line with our evolving business model.”
Following the approval of the financial results, TAQA’s Board of Directors declared a first interim cash dividend of 0.65 fils per share (equivalent to AED 731M). In addition to this, TAQA recently completed a successful dual tranche 5-year and 10-year bond offering, with a total value of $1.5B.
The offering was oversubscribed by ten times with strong demand from international investors. This included TAQA’s first-ever company-issued green bond, issued under its new Green Finance Framework for eligible green projects.
