- 14 Nov 2022
TAQA Group Reports Net Income of AED 6.5 Billion for First Nine Months of 2022
Abu Dhabi, UAE – November 14, 2022: Abu Dhabi National Energy Company PJSC (“TAQA”, the “Company” or the “Group”), one of the largest listed integrated utilities in the region, reported consolidated financial results for the period ended September 30, 2022.
TAQA delivered a strong performance underpinned by its stable contracted and regulated utilities business and buoyant commodity prices. Highlights for the nine-month period include:
- Group revenues of AED 38.7 billion, 14% higher than the prior-year period, primarily due to higher commodity prices within the Oil & Gas segment.
- Adjusted EBITDA was AED 16.5 billion, up 15%, benefiting from strong revenue growth.
- Net income (TAQA-share) was AED 6.5 billion, 53% higher than the prior-year period, with the Oil & Gas segment proving to be a significant contributor to bottom line growth.
- Capital expenditure was AED 2.5 billion, 28% lower than the prior-year period, largely reflecting lower spend in the Transmission & Distribution segment.
- Free cash flow was AED 12.8 billion, 13% higher than the same period last year, supported by a combination of higher cash generation and lower capex.
- Cash, cash equivalents and undrawn corporate credit facilities amounted to AED 24.7 billion at the end of the period.
- Transmission network availability for power and water was 98.6%, compared to 98.3% in the prior-year period.
- Generation global commercial availability was 97.8%, slightly higher than the 97.3% figure in the same period last year.
- Oil & Gas average production volumes were 123.1 thousand barrels of oil equivalent per day (boepd), largely in line with the same period last year.
Upon approving the period’s financial results, TAQA’s Board of Directors also declared an interim cash dividend of AED 675 million (0.60 fils per share). This will be the third quarterly dividend payment planned for the financial year of 2022, in line with the Company’s dividend policy.
Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, commented: “The first nine-months of 2022 saw TAQA Group deliver another set of strong financial results, reflecting strong performance across all our businesses. I am also pleased to note that we have continued to demonstrate our commitment to our growth strategy and ESG. Last year, when TAQA launched its growth strategy for 2030, we committed to becoming a company anchored in ESG principles, and we have delivered on this promise by announcing our 2030 ESG strategy, including interim greenhouse gas emissions (GHG) reductions targets.
Under this strategy, we have committed to a 25% reduction of scope 1 and 2 GHG emissions by 2030 across the Group, including a 33% reduction of UAE portfolio emissions compared to the 2019 baseline. This is a commitment to absolute emissions reductions and a credible step towards achieving our net-zero ambitions by 2050.
Other highlights during the third quarter, include, announcing the successful financial close of a USD 3.8 billion strategic first-of its-kind project to power and significantly decarbonize ADNOC’s offshore production operations. We also signed agreements to invest, alongside Mubadala, in the privatization of two gas-fired power generation plants in the Talimarjan complex in Uzbekistan, representing another credible milestone towards our commitment to deliver 15GW of new international capacity by 2030. We also refinanced our USD 3.5 billion revolving credit facility allowing us to extend the final maturity date of the facility from 2024 to 2027 whilst also reducing cost, as well as completing the USD 1.09 billion long-term refinancing of the MIRFA International Power & Water Plant.
On the oil and gas front, we successfully concluded our strategic review of our operations and concluded that we would retain the majority of our assets, whilst entering binding agreements with Waldorf Energy Netherlands BV to sell the upstream oil and gas business in the Netherlands.
2022 is shaping up to be one of TAQA’s most productive years to date and I am confident that we will continue on this trajectory for the remainder of the year.”
Since launching its ESG strategy 2030 just last month, TAQA Group has already received a two-grade uplift (from “B” to “BBB”) in its ESG Risk Rating by global organization – MSCI. This improved rating, which comes as a result of the company’s new ESG strategy and targets, enhanced level of disclosures and 2021 sustainability report, positions TAQA on par with global utilities players and ahead of regional peers.
The full set of financial disclosures can be found within the Investor Relations section on TAQA’s website.