Abu Dhabi National Energy Company PJSC (“TAQA” or “the Group”), one of the largest integrated utilities companies in Europe, the Middle East, and Africa, today reported strong financial results for the first nine months ending 30 September 2024. The Group’s solid performance was driven by consistent returns from its utilities business and the successful integration of TAQA Water Solutions (formerly Sustainable Water Solutions Holding Company PJSC).
Key Financial Highlights:
- Revenues: AED 41.7 billion, a 6.0% increase from the previous year, primarily due to contributions from TAQA Water Solutions and the Transmission & Distribution (T&D) business.
- EBITDA: AED 16.9 billion, up AED 1.4 billion (9.0%) from the prior year, excluding a one-off AED 10.8 billion from the acquisition of a 5% stake in ADNOC Gas. Including this one-off item, EBITDA decreased by AED 9.4 billion.
- Net Income: AED 6.3 billion, an increase of AED 0.7 billion (13.2%) excluding one-off items, such as AED 10.8 billion for ADNOC Gas and AED 1.1 billion related to the UAE corporate tax. Including these one-offs, net income decreased by AED 8.9 billion.
- Capital Expenditure: AED 6.1 billion, an 85.4% rise from the previous year, driven by progress in desalination projects and investments in T&D and TAQA Water Solutions.
- Free Cash Flow: AED 2.9 billion, a decline of AED 7.3 billion year-over-year, due to increased investments in Masdar, capital expenditures in Generation, T&D, and TAQA Water Solutions, and accelerated decommissioning activities in Oil & Gas.
- Gross Debt: AED 60.6 billion, a slight decrease from AED 61.7 billion at the end of 2023, after repayments and new debt issuance, including a drawdown of AED 2.4 billion from the revolving credit facility and funding for desalination projects.
Strategic Developments:
- Transmission & Distribution Merger: In September, TAQA merged its distribution businesses, Abu Dhabi Distribution Company (ADDC) and Al Ain Distribution Company (AADC), to form TAQA Distribution. This move strengthens its operational capabilities and customer service across the Emirate of Abu Dhabi.
- Rebranding: TAQA launched a unified brand identity to better reflect its role in delivering integrated power and water services, enhancing its presence in the UAE and beyond.
- Generation Business Expansion: In August, TAQA finalized the financial closing of Najim Cogeneration Company Limited in Jubail, Saudi Arabia, which will provide 475 MW of power and 452 tons per hour of steam to a petrochemical complex.
- Masdar Acquisition in North America: In October, Masdar acquired a 50% stake in Terra-Gen Power Holdings II, expanding its renewable energy portfolio by 3.8 GW of wind, solar, and battery storage projects across the US.
- Water Sector Growth: TAQA completed the full acquisition of SWS Holding, now TAQA Water Solutions, expanding its role in water management in Abu Dhabi, with a network of 13,000 km of sewer pipelines and a daily water treatment capacity of 1.3 million cubic meters.
- Oil & Gas Divestment: In August, TAQA sold its stake in the Atrush oil field in Iraq and continued its transition in the UK towards decommissioning operations in the North Sea.
Bond Issuances & ESG Commitment:
- Bond Issuances: In October, TAQA successfully priced USD 1.75 billion in dual-tranche senior unsecured notes, including USD 850 million in green bonds to fund eligible green projects.
- ESG Rating: TAQA’s ESG rating was upgraded by MSCI to ‘A’ from ‘BBB,’ reflecting its commitment to sustainability.
Operational Performance:
- Transmission Network Availability: 98.7%, slightly up from 98.4% in the same period last year.
- Generation Commercial Availability: 98.0%, up from 97.9%.
- TAQA Water Solutions Availability: 95.7%, highlighting strong performance since its integration in 2024.
- Oil & Gas Production: 102.2 mboepd, a 5.6% decline mainly due to the decommissioning of four UK platforms.
