Taqa posts Dh1.4b in Q1 net profit; declares interim dividend

Abu Dhabi National Energy Company (Taqa) reported on Wednesday a net income of Dh1.4 billion for the quarter, boosted by improved commodity prices in the oil and gas segment.

The leading integrated utilities company, which had reported a loss of Dh548 million in the year-earlier period, said its group revenues rose 3.0 per cent to Dh10.3 billion reflecting a recovery from softer economic conditions “underpinned by its stable contracted and regulated utilities businesses.”

The company also declared an interim cash dividend of Dh618 million (0.55 fils per share). “This will be the first of four quarterly dividend payments planned for the financial year of 2021,” it said in a statement.

The group’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) was Dh4.7 billion, up 12 per cent, mainly reflecting higher revenues, lower operating expenses and higher income from associates, the company said.

Capital expenditure during the quarter was Dh1.3 billion, an increase of 18 per cent as a result of lower spend in 2020 as projects were delayed or postponed at the onset of the Covid-19 global pandemic.

Jasim Husain Thabet, Taqa’s group chief executive officer and managing director, said the group has closed out a strong first quarter demonstrating resilience, which is underpinned by its financial and strategic scale as a fully integrated utilities company.

“Driven by our newly articulated strategy, which lays the foundation for sustainable and profitable growth, Taqa will continue to build on our financial strength. In 2021, we hit the ground running with our recent bond issuance which received strong endorsement from investors around the world, showcasing Taqa’s investment attractiveness and our commitment to delivering on our strategy,” said Thabet.

“Looking forward, the conditions are more optimistic as we see the demand for utilities and commodities bounce back after the universal challenges brought on from the pandemic. As the market continues its recovery, both in the UAE and abroad, Taqa is well placed to continue on its trajectory for growth as the recognized low carbon power and water champion of Abu Dhabi,” said Thabet.

In March, Taqa Group announced a new 2030 strategy for sustainable and profitable growth, prioritising the global acceleration of the energy transition and the company’s ambition to become a champion for low carbon power and water.

Taqa, which on Sunday announced the placement of an aggregate $1.5 billion in 7-year and 30-year dual-tranche senior unsecured notes, said it also is committed to investing an additional Dh40 billion to grow its UAE regulated asset base. “The company plans to focus on commercially viable opportunities to reduce exposure to the hydrocarbon sector and will publish its first sustainability report in 2021,” it said.

—issacjohn@khaleejtimes.com