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Taqa board recommends 49% foreign ownership limit

reporters@khaleejtimes.com Filed on November 10, 2020
Taqa’s Board of Director has proposed a new dividend policy that will target a total dividend of 2.50 fils per share for 2020, growing 10% annually for the following two years (Photo courtesy: Taqa website)

Taqa revenues fell 7% to Dh30.8 billion, primarily due to lower oil and gas prices and production volumes

Abu Dhabi National Energy Co. (Taqa), one of the UAE’s largest publicly listed companies by market capitalisation, on Tuesady said its board of directors increased foreign ownership limit to 49 per cent.

Ownership was previously limited to UAE nationals and institutions.

The company also announced net income for the first nine-month fell to Dh1.3 billion due to a significantly lower contribution from the oil and gas segment, including a Dh1.5 billion post-tax impairment charge taken in Q1 2020.

The company has reported its first consolidated pro-forma financial results following its transaction with Abu Dhabi Power Corporation (ADPower) on July 1, 2020.

Its revenues fell seven per cent to Dh30.8 billion, primarily due to lower commodity prices and production volumes within the oil and gas segment. Capital expenditure totalled Dh2.8 billion, a decrease of 20 per cent.

The Board also proposed a new dividend policy that will target a total dividend of 2.50 fils per share for 2020, growing 10 per cent annually for the following two years.

As per the proposed policy, dividends for 2020 will be paid through an interim dividend of 1.50 fils a share to be paid as soon as possible and a final dividend of 1.00 fils a share to be paid after the Annual General Assembly in 2021.

Dividends for 2021 and 2022 will be paid quarterly. The implementation of the policy will be subject to further regulatory and shareholder approval, which, once obtained, will allow the Board to subsequently approve the payment of an interim dividend as soon as possible thereafter.

“We are excited to see Taqa embark on a journey that is strengthened by the recent integration with ADPower. We are also pleased to start delivering on the Company’s new strategic imperatives, which includes delivery of sustainable shareholder returns. To that end, we will propose to our shareholders a progressive dividend policy that will see Taqa return cash to investors on a quarterly basis – a first in the UAE by a publicly listed company – and commit to growing this by 10 per cent per year over the next two years,” said Mohamed Hassan Al Suwaidi, Chairman of Taqa Group.

Jasim Husain Thabet, Taqa’s Group Chief Executive Officer and Managing Director, said: “Strong market headwinds have challenged the entire energy industry this year, but as a new, transformed company, Taqa’s financial results demonstrate the company’s ability to deliver on our core mandate – to reliably supply energy and water to those we serve. Taqa continues to forge ahead, emboldened by the operational and strategic ambitions we established at the closing of our landmark transaction with ADPower.”

-waheedabbas@khaleejtimes.com

Staff Reporter





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