Taqa group’s net profit surges 35% to Dh8b on bullish commodities

Taqa’s board proposed a final cash dividend for 2022 of 3.3 fils/share (Dh3.713 billion), bringing the full year dividend to 5.1 fils/share (Dh 5.738 billion)

by

Issac John

  • Follow us on
  • google-news
  • whatsapp
  • telegram

 

The company also made significant investments of Dh4.5 billion in 2022. — File photo
The company also made significant investments of Dh4.5 billion in 2022. — File photo

Published: Tue 14 Feb 2023, 3:04 PM

The full-year net income of Abu Dhabi National Energy Company (Taqa) soared 35 per cent to Dh8 billion, underpinned by its contracted utilities business and a surge in commodities prices, the company announced on Tuesday.

The listed integrated utilities major said in a statement that group revenues rose 10.3 per cent year-on-year to Dh50 billion primarily due to higher commodity prices within the oil & gas segment.


Adjusted Ebitda rose 6.7 per cent to Dh 20.8 billion while capital expenditure declined 20.1 per cent to Dh 3.8 billion.

Taqa’s board proposed a final cash dividend for 2022 of 3.3 fils/share (Dh3.713 billion), bringing the full year dividend to 5.1 fils/share (Dh 5.738 billion).


The company also made significant investments of Dh4.5 billion in 2022, relating to the acquisition of Masdar and the project to power and decarbonise Adnoc’s offshore production operations.

Mohamed Hassan Alsuwaidi, Taqa’s chairman, said the company 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,” said Alsuwaidi.

Taqa now owns a 43 per cent share in Masdar’s renewables business and a 24 per cent share in its green hydrogen business. Masdar will drive the group’s investments in clean energy.

Jasim Husain Thabet, Taqa’s group chief executive officer and managing director, said the company took steps to enter a new market in Uzbekistan, and concluded a financial deal for a key decarbonisation project for Adnoc’s offshore production facilities. The $3.8 billion strategic project will significantly decarbonise Adnoc’s offshore production operations through a high-voltage direct current sub-sea transmission network that will connect the oil major’s offshore operations to Abu Dhabi’s onshore grid.

“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.”

The company said its free cash flow generation remained strong in 2022 at Dh13.8 billion, albeit 22.3 per cent lower compared to the previous year, mainly due to payment for its investment in Masdar. Gross debt was Dh61.7 billion, down from Dh65.0 billion at the end of 2021, further improving the group’s credit metrics.

In line with the UAE’s 2050 Net Zero target, “Taqa has committed to a 25 per cent reduction of scope one and two emissions by 2030 across the group, including a 33 per cent reduction of UAE portfolio emissions. Additionally, Taqa aims to reduce water distribution losses by 25 per cent by 2030, while the participation of women in management is set to rise to 30 per cent over the same period,” said the statement.

— issacjohn@khaleejtimes.com


More news from Business