TAQA Reports $1.72 Billion Net Income for First 9M-2024

Abu Dhabi National Energy Company (TAQA), one of the largest listed integrated utilities companies in Europe, the Middle East, and Africa, on Thursday said that it has achieved impressive performance in the first nine months of this year, bolstered by consistent returns from its utilities business and a strengthened portfolio following the integration of TAQA Water Solutions.

The Group revenues were $11.35 billion, 6.0% higher than the prior year period, mainly due to the contribution from Water Solutions and T&D. EBITDA was $4.6 billion, an increase of $380 million (9%) compared to the prior year period, excluding the $2.94 billion related to the acquisition of a 5% stake in ADNOC Gas.

Including this one-off item, EBITDA saw a decrease of $2.56 billion, TAQA said in a regulatory filing with Abu Dhabi Securities Exchange (ADX) this morning.

The net income stood at $1.72 billion, up $190.58 million (13.2%) compared to the prior year, excluding one-off items – $2.94 billion related to the acquisition of a 5% stake in ADNOC Gas and an $300 million deferred tax charge due to the UAE corporate tax introduction. Including these one-off items, net income saw an increase of $2.42 billion.

Capital expenditure was $1.66 billion, 85.4% 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, timing and phasing of project execution within T&D and the inclusion of TAQA Water Solutions.

Free cash flow generation amounted to $790 million, $1.99 billion lower than the previous year, primarily reflecting increased investments to Masdar, capital investment across Generation, T&D and Water Solutions and the acceleration of decommissioning activities within O&G sector.

Gross Debt Down

Gross debt was $16.50 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 $600 million. However, these reductions were partially offset by new debt, including $650 million drawdown from the Group’s revolving credit facility, $410 million in project debt from the acquisition of SWS Holding, and $272 million to fund the construction of the M2 RO and S4 RO desalination projects.

TAQA’ Group CEO and Managing Director Jasim Husain Thabet said that the strength of TAQA’s core businesses, combined with its disciplined approach and commitment to growth, has been reflected in their robust financial and operational performance over the first nine months of 2024.

He said that that transmission & distribution business, combined with the successful integration of TAQA Water Solutions, has delivered reliable revenue streams, reinforcing TAQA’s role as a leading provider of low-carbon power and water.

“Beyond a strong performance, this period marked a milestone for the Group with the announcement of the merger of our customer facing distribution companies, along with rebranding of our wholly owned operating entities in UAE, underscoring TAQA’s integrated position across the utilities value chain and enhancing our brand’s resonance & customer service in the communities we serve,” he said.

 “We also achieved progress on several strategic initiatives, such as the Juranah Water Reservoir project in Makkah and the industrial steam and electricity cogeneration plant in Jubail, Saudi Arabia, which demonstrate our commitment to regional expansion and sustainable infrastructure. Through Masdar, we continue to advance toward global renewable goals, with strategic acquisitions in North America and Europe further supporting Masdar’s target of reaching 100 GW capacity by 2030,” he said.

Aligned with TAQA’s commitment to strong financial stewardship, the company has issued bonds worth $1.75 billion, $850 million of which in green bonds, underscoring its dedication to sustainable finance.

The company’s improved credit rating of AA from Fitch continues to reflect our financial resilience, and as we look forward, we remain focused on capturing growth opportunities that align with our vision and enhance long-term value for all stakeholders,” he added.