Taqa Group reports revenue rise of 11% at Dhs45.7 billion in 2021

Abu Dhabi National Energy Company (Taqa) on Friday reported consolidated financial results for the year ended Dec.31, 2021 with net income (Taqa-share) of Dhs6.0 billion, an increase of AED3.2 billion, thanks to greater contribution from the Oil & Gas segment and reflecting the Dhs1.5billion post-tax impairment charge in the previous year.

The Group revenues of Dhs45.7 billion, 11 per cent higher than the prior-year period, primarily due to higher commodity prices within the Oil & Gas segment, according to a Taqa press release on Friday.

Adjusted Ebitda (earnings before interest, taxes, depreciation and amortisation) was Dhs19.7 billion, up 23 per cent, mainly reflecting higher revenues and improved income from associates, partially offset by higher expenses.

The capital expenditure was Dhs4.7 billion, 26 per cent higher than the prior year, driven by expenditure in Transmission & Distribution, the Group’s largest segment.

A strong free cash flow of Dhs17.8 billion, further improving liquidity following the full repayment of corporate credit facilities in the first half of the year. However, the gross debt of Dhs64.9 billion, down from Dhs76.0 billion at the end of 2020, further improving the Group’s credit metrics.

Transmission network availability for power and water reached 98.4 per cent, marginally lower than the previous year. Generation global technical availability of 92.3 per cent, lower than the prior period, mainly due to planned and unplanned maintenance within the UAE fleet.

Oil & Gas average production volumes increased to 122.4 thousand barrels of oil equivalent per day (boepd), an increase of 4 per cent, driven by higher production in Europe, particularly the United Kingdom.

Upon approval of the financial results, Taqa’s Board of Directors proposed a final cash dividend of AED1.2 billion (1.1 fils per share). This will be the fourth and final quarterly dividend payment planned for the financial year of 2021, bringing total dividends for the year to AED3.1 billion, in line with the Company’s dividend policy.

Mohamed Hassan Alsuwaidi, Taqa’s Chairman, commented, “In 2021, Taqa Group outlined an ambitious growth strategy, setting its sights on being the recognised low carbon power and water champion of Abu Dhabi and beyond. Taqa’s strategy put a stake in the ground, showcasing its commitment to decarbonisation and growth with a clear roadmap to 2030.

It immediately began executing this plan, including announcing a powerhouse partnership with Mubadala and Adnoc to become shareholders in one of the largest renewable energy companies in the world, under the Masdar brand.” Jasim Husain Thabet, Taqa’s Group Chief Executive Officer and Managing Director, stated, “While 2021 showcased the financial and operational strength of Taqa Group, it was also a success because of the commitment to excellence from our employees - our most important assets. As a result, we progressed in new areas such as green hydrogen. We achieved key milestones including the first water being produced from the Taweelah Reverse Osmosis plant - that once fully operational, will be the largest of its kind in the world.

“Internationally, we also moved forward on our growth plans by signing the Tanajib cogeneration and desalination project in Saudi Arabia with Saudi Aramco.”

Earlier on Jan.12, the Abu Dhabi National Energy Company and Etisalat Digital, the arm of Etisalat that is driving digital transformation in the region and beyond, announced they will partner on an advanced metering infrastructure (AMI) project to enhance utilities metering in the Emirate of Abu Dhabi.

Over the next two years, Taqa’s power and water distribution companies - Abu Dhabi Distribution Company (ADDC) and Al Ain Distribution Company (AADC) - will work alongside Etisalat Digital to deploy the communication network and an advanced Internet of Things platform for AMI, helping unlock the capability of existing and new smart meters installed in customer homes and businesses.  Taqa has already started the journey towards the connectivity of its advanced metering infrastructure with more than 30 per cent of the smart meters in Abu Dhabi already connected. This partnership will bring the connection across the Emirate to 100 per cent.

Unlike traditional meters, smart meters with advanced connectivity capabilities can give customers access to detailed automatic readings of both their current and historical energy usage, allowing them to better understand and control their consumption. Such infrastructure serves as the foundation which will enable future demand side management programs. In addition, these meters will pave the way toward smart grid objectives such as monitoring capacity and outage management.

Omar Al Hashmi, Taqa Group’s Executive Director of Transmission and Distribution, commented: “Taqa’s agreement with Etisalat Digital is a significant moment for our customer facing businesses. Once complete, it will ensure higher efficiency standards for our customers and contribute to digitalisation of our infrastructure, accelerating operational improvements and smart grid readiness.