Taqa reports AED11.6 billion net income for first quarter of 2023

ABU DHABI / WAM

Abu Dhabi National Energy Company (Taqa) on Monday reported a very strong first quarter for the period ending on March 31, announcing a net income (Taqa share) of AED11.6 billion, an increase of AED9.6 billion, mainly driven by a one-off gain recognised on the acquisition of a 5% shareholding in Adnoc Gas.
It also announced group revenues of AED13.1 billion, 6% higher than the prior-year period, primarily due to higher pass-through bulk supply tariffs and transmission use of the system within the Transmission and Distribution segment and Adjusted Ebitda of AED5.3 billion.
The company announced a capital expenditure of AED1.1 billion, 26% higher than prior year; Free cash flow generation was AED4.3 billion, 31% higher compared to the previous year; and gross debt of AED 59.8 billion, down from AED61.7 billion at end of 2022.
Speaking on the occasion, Jasim Husain Thabet, Taqa’s Group Chief Executive Officer and Managing Director, said, “Taqa Group has closed a positive first quarter for 2023 with a significant boost to our net income from our new stake in Adnoc Gas. Outside of this, the company has made strong progress in delivering on our growth strategy alongside a steady financial performance.”
“On the growth front, we started the year by expanding our stake in Taweelah B IWPP and further strengthened our capabilities by expanding into the plant’s operations & maintenance, a key growth area for our business. We partnered with Engie to develop the Mirfa 2 RO plant, delivering 120 MIGD of desalinated water. This plant is another important step in expanding energy-efficient RO technology in our desalination fleet as we promised.”
“In addition, shareholders approved a new dividend policy for 2023 — 2025, which is based on a combination of fixed and variable dividends and will offer attractive returns to our shareholders and is in line with our evolving business model,” Taqa’s CEO added.
Upon approval of the financial results, Taqa’s Board of Directors also declared a first interim cash dividend for the year of 0.65 fils per share (approximately AED731 million).
In addition to the Q1 2023 highlights, Taqa recently completed a dual tranche 5-year and 10-year bond offering. The successful placement of $0.5 billion 5-year and $1.0 billion 10-year senior unsecured notes was ten times oversubscribed with demand from international investors and included Taqa’s first-ever company-issued green bond.
These bonds were issued on the back of the Company establishing its first Green Finance Framework for issuing green bonds, sukuks, loans and other debt instruments. Proceeds from the issuance will go to eligible green projects.