TAQA Group Posts Revenue of $7.41 Billion for H1-2024
Abu Dhabi National Energy Company (TAQA), one of the largest listed integrated utilities companies in Europe, the Middle East and Africa listed on the Abu Dhabi Securities Exchange (ADX), on Wednesday said that the group revenue was $7.41 billion, 2% higher than the prior-year period.
The company delivered solid financial results, supported by stable returns from its Transmission & Distribution business and further strengthened by the contribution from Sustainable Water Solutions Holding Company (SWS Holding), the company said in a regulatory filing this morning.
The adjusted EBITDA was $2.97 billion, 4% higher than the first half of 2023 while the net income was $1.2 billion, up 12.3% compared to the prior year, excluding one off items, but a decrease of $2.5 billion when these one-off items are included.
Capital expenditure was $1.03 billion, 91% higher than prior year driven mainly by construction progress in the Mirfa 2 Reverse Osmosis (M2 RO) and Shuweihat 4 Reverse Osmosis (S4 RO) desalination projects as well as timing and phasing of project execution within the T&D business.
The free cash flow generation was $1.17 billion, $570 million lower than the previous year, primarily reflecting capital expenditure on the development of M2 RO and S4 RO desalination projects and working capital movements.
The gross debt was $15.95 billion, down from $16.8 billion at the end of 2023, primarily due to the repayment of $950 million of matured corporate bonds and scheduled loan repayments of $410 million. This decrease was partially offset by an additional $410 million in project debt from the acquisition of SWS Holding and $163.36 million from new project debt to fund the development of the M2 RO and S4 RO projects.
Unwavering Commitment
TAQA Chairman Mohamed Hassan Alsuwaidi said that the company’s continued growth during the first half of 2024 is a result of its unwavering commitment to unlocking long-term value for stakeholders.
The Group has consistently achieved strong financial results, underpinned by an improved credit rating of AA by Fitch, demonstrating the resilience of its balance sheet. TAQA’s focus on executing projects that will further cement its leading market position remains steadfast, he noted.
He also said that a notable milestone is the upcoming integration of SWS Holding, which will contribute to TAQA’s transformation into a vertically integrated utility leader with expanded expertise in water treatment.
“Looking ahead, TAQA remains dedicated to sustainable growth and progress that balances shareholder benefits with our stewardship of the environment and communities,” he added.
TAQA’s CEO and Managing Director Jasim Husain Thabet, said that the company robust financial and operational performance in the first six months of 2024 was driven by the sustained growth across the Transmission & Distribution business, and bolstered by the welcome addition of SWS Holding. These reliable sources of income align with TAQA’s ambition to be an integrated utility champion, providing low-carbon power and water to the communities it serves and creating value for
stakeholders. During this period, TAQA also remained focused on delivering on key strategic projects, he said.
On the generation side, TAQA in partnership with Japan Electricity Regulatory Authority (JERA), signed a Power and Steam Purchase Agreement with SATORP, a joint venture company owned by Saudi Aramco and TotalEnergies, to develop an industrial steam and electricity cogeneration plant in Saudi Arabia, he said.
“Additionally, TAQA along with its partners achieved financial closing of the Juranah Independent Strategic Water Reservoir Project in Saudi Arabia, aligning with its strategy to expand the transmission and distribution business beyond the UAE,” he added.
