AED 15 billion in net income was reported by TAQA Group for the first nine months of 2023.

One of the biggest listed integrated utilities in Europe, the Middle East, and Africa, Abu Dhabi National Energy Company PJSC (“TAQA”, the “Group,” or the “Company”), released its earnings report for the quarter ending September 30, 2023, and revealed updated growth targets that will see the Group accelerate the development of new power and water generation assets while maintaining its investments in transmission and distribution infrastructure. By 2030, the revised investment plan hopes to have a larger percentage of renewable energy in its portfolio.

Expanding on its expansion plan for 2021, TAQA’s updated growth plans call for the company to generate 150 gigawatts (GW) of gross power by 2030, up from its prior goal of 50 GW. Approximately 65 percent of this power will come from renewable sources. TAQA had previously committed to a target of 30%; however, the Group has raised this goal in light of its dominant position in Masdar’s renewable energy operations. By 2030, Masdar’s clean generation capability is anticipated to reach 100 GW on its own. By 2030, TAQA’s net power generation capacity—which currently stands at 17 GW—is expected to increase to 50 GW.

With a plan to raise the Group’s water generation capacity to 1,300 MIGD, two-thirds of which will come from the highly effective and low-carbon reverse osmosis (RO) technology, TAQA is also increasing its growth targets for this sector. At present, TAQA has a desalination capacity of somewhat more than 1,180 MIGD.

TAQA intends to invest AED 75 billion until 2030 in UAE-based transmission and distribution networks, as well as in the expansion of power and water capacity, in order to support the development of future projects and related infrastructure networks. This sum includes the AED 40 billion that was already committed to be spent between 2021 and 2030 to expand the transmission and distribution networks in the United Arab Emirates.

TAQA is also actively seeking to expand its Transmission and Distribution business beyond the UAE through both inorganic and organic opportunities.

In the first nine months of 2023, TAQA delivered a solid financial performance driven by strong and stable returns from its long-term contracted utilities business whilst it has remained focused on delivering its growth strategy.

Financial highlights:

• Higher pass-through bulk supply prices and transmission usage of system within the Transmission and Distribution business offset a fall in Oil and Gas revenue to bring group revenues to AED 39.5 billion, unchanged from the same time last year.
• AED 15.3 billion was the adjusted EBITDA, an 11% decrease. Due to lower realised oil and gas prices as well as lower output, the Oil and Gas segment’s contribution fell, leading to this loss.
• A one-time gain of AED 10.8 billion recognised on the acquisition of a 5% shareholding in ADNOC Gas drove the net income (TAQA share) to AED 15.0 billion, an increase of AED 8.5 billion. This gain was partially offset by a one-time deferred tax liability of AED 1.2 billion related to the implementation of UAE corporate income tax on January 1, 2024. After accounting for these one-time expenses, net income came to AED 5.4 billion, 17% less than the previous quarter’s amount, mostly because the Oil & Gas section contributed less.
• AED 3.3 billion was spent on capital projects, which is 34% more than the previous year due to the Transmission and Distribution segment’s accelerated project execution.
• The amount of free cash flow generated was AED 10.2 billion, which was 20% less than the year before. The Oil and Gas segment’s diminished contribution was the primary cause of the reduction.
• As of the end of 2022, the gross debt remained constant at AED 61.7 billion.

SOURCE:https://www.taqa.com/press-releases/taqa-group-reports-aed-15-billion-net-income-for-first-nine-months-of-2023-and-refreshed-2030-growth-targets/