TAQA Witnesses Rapid Growth in Global Markets in FY24

Abu Dhabi National Energy Company PJSC (TAQA), one of the largest listed integrated utilities in Europe, the Middle East, and Africa, on Friday said that it has made rapid strides in Saudi Arabia, its key international target market, on a number of projects in the Kingdom in 2024.

TAQA has achieved financial close for Juranah Independent Strategic Water Reservoir Project, a strategic water infrastructure project aimed at addressing emergency municipal water demand across the Kingdom, specifically in the Makkah region during the Hajj season. The project is being developed by TAQA in conjunction with partners Vision Invest and GIC Consortium.

It has also achieved financial close for Najim Cogeneration Company, a new industrial steam and electricity cogeneration plant that will supply up to 475 MW of electricity and approximately 452 tonnes per hour (tph) of steam to a petrochemical complex located in Jubail in the Eastern Province of the Kingdom. TAQA will own 51% of the plant, with JERA, Japan’s largest power generation company owning the remaining 49%.

A consortium led by TAQA, JERA and Al Bawani signed two 25-year Power Purchase Agreements (PPAs) were signed with Saudi Power Procurement Company (SPPC) to develop two new greenfield power projects, one each in Rumah and Al Nairyah, with a combined capacity of 3.6 GW.

The two new plants will be developed as highly efficient combined cycle gas power plants, by respective special purpose entities owned by TAQA (49%), JERA (31%) and Al Bawani (20%) with operation and maintenance (O&M) of the plants to be undertaken through respective O&M special purpose entities having the same shareholding structure.

Masdar acquired a 50% stake in Terra-Gen Power Holdings II, expanding its presence in the US renewables market. Terra-Gen’s gross operating portfolio at the time of acquisition comprised 3.8 GW of wind, solar and battery storage projects, including 5.1 GWh of energy storage facilities across 30 renewable energy sites throughout the US.

Expanding its footprint in Europe, Masdar, in which TAQA is one of the three major shareholders, completed acquisition of Saeta Yield from Brookfield Renewables, finalised partnership agreement with Endesa S.A. to advance renewable energy initiatives, and also enhanced its renewable energy portfolio in Greece and the EU, through acquisition of Terna Energy, which had an operating capacity of 1.2 GW at the time of acquisition and targeting 6 GW of operational renewable capacity by 2029.

Access to Capital Markets

TAQA also issued $1.75 billion in dual-tranche bonds (7-year and 12-year notes) in October last year. The $850 million 12-year notes represented TAQA’s second green bond issuance, the net proceeds of which are being used to finance, refinance and invest in relevant eligible green projects, as outlined in the Company’s Green Finance Framework.

The remaining seven-year $900 million conventional bond has a maturity date of 9 October 2031 with a coupon rate of 4.375% and the proceeds will be used for general corporate purposes.

Financials

The Group’s revenues increased 6.7% y-o-y to $15.03 billion, driven by sustained growth in Transmission & Distribution (T&D) and the consolidation of TAQA Water Solutions (TAQA WS) in 2024.

EBITDA was $5.83 billion, up 5.9% compared to the prior year, 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 31% y-o-y, TAQA said.

The net income was $1.93 billion, up 1.5% compared to the prior year, excluding one-off items ($2.94 billion) related to the acquisition of a 5% stake in ADNOC Gas and $300 million deferred tax charge due to the introduction of UAE corporate tax. Including these one-off items, net income recorded $2.61 billion y-o-y decline.