Taqa posts Dh2.8 billion net income for 2020

Abu Dhabi National Energy Company (Taqa) reported on Monday a fall in net income to Dh2.8 billion in 2020.

The state utility said in a statement that its revenues fell six per cent to Dh41.2 billion compared to the prior-year period, primarily due to lower commodity prices and production volumes within the oil & gas segment.

The company said it “continued to deliver a resilient performance amid unprecedented economic conditions. The results were underpinned by stable contracted and regulated utilities businesses.”

Taqa’s Ebitda (earnings before interest, taxes, depreciation and amortisation) fell 13 per cent top Dh16 billion, reflecting lower revenues that were partially offset by lower expenses, while capital expenditure dropped 19 per cent to Dh4 billion due to lower spending in the oil & gas segment, the statement said.

The utility’s board of directors proposed a final cash dividend of Dh1.1 billion (1.00 fils per share) that together with the Dh1.7 billion (1.50 fils per share) paid in December brings the total cash dividend to Dh2.8 billion (2.50 fils per share), it said.

Mohamed Hassan Al Suwaidi, Taqa’s chairman, despite this challenging context, 2020 was a year of great progress, change and achievement for the company.

“In July we successfully brought Abu Dhabi’s water and power assets under a new Taqa management team. We are now well placed to grow using our robust balance sheet, strong cash flow and our position as one of the largest fully integrated utilities companies in the EMEA region.”

Jasim Husain Thabet, Taqa’s group CEO and managing director, said the utility has carved out a new place in the market during an extraordinarily tough year.

“These financial results demonstrate the strong platform for growth that we have created through our landmark transaction with ADPower.”

He said Taqa achieved some key milestones, including the financial close of two ground-breaking projects: the Fujairah F3 and the Al Dhafra Solar PV plants.

Fujairah F3, now under construction, will be the UAE’s largest independent gas-fired power plant, and the Al Dhafra project will be the world’s largest single-site plant of its kind setting a new frontier for low-cost solar power with a tariff of Dh4.85 fils/kWh).

Taqa has also progressed on the construction of another ground-breaking project – the world’s largest reverse osmosis desalination project at Taweelah, the company said.

— issacjohn@khaleejtimes.com