Taqa Group reports 9-month net income of Dhs6.5 billion

Abu Dhabi National Energy Company (Taqa) reported consolidated financial results for the period ended 30th September, announcing a net income (Taqa-share) of Dhs6.5 billion, 53% higher than the prior-year period.

The company also reported group revenues of Dhs38.7 billion, 14% higher than the prior-year period and Adjusted EBITDA of Dhs16.5 billion, up 15%, benefiting from strong revenue growth.

Upon approving the period’s financial results, Taqa’s Board of Directors also declared an interim cash dividend of Dhs675 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-month of 2022 saw Taqa Group deliver another set of strong financial results, reflecting strong performance across all our businesses.

“Last year, when Taqa launched its growth strategy for 2030, we committed to becoming a company anchored in Environmental, Social, and Governance (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 $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 privatisation 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 $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 $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 organisation - 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 utility players and ahead of regional peers.

The ESG strategy includes the national low-carbon power and water champion’s interim greenhouse gas (GHG) emissions reduction goals and is a credible step towards achieving its net-zero ambitions by 2050.

Under the strategy, Taqa has committed to a 25% reduction of scope 1 and 2 emissions by 2030 across the Group, including a 33% reduction of the UAE portfolio emissions compared to the 2019 baseline.

Jasim Husain Thabet commented, “We see sustainability as an opportunity and are evolving to become a champion of low carbon power and water. That means meeting the energy and water needs of today as efficiently as possible, whilst also investing in the lower carbon alternatives we need.

“ESG was put at the heart of our corporate strategy last year, and this ESG strategy and the targets are a proof of us delivering on this commitment. We have a key role to play in helping the UAE achieve its net zero by 2050 target which is reflected in our GHG emissions reduction targets.”

These are not just targets for the future, he said, adding that they represent actions that Taqa is already taking to deliver meaningful emission reductions and achieve net zero by 2050.

“As we approach COP27 and COP28 here in the UAE, the focus will be increasingly on actions and not just pledges. As a major regional utility, we are determined to play our part without compromising on the security of supply. We will also be unwavering in our pursuit of the opportunities associated with tackling climate action and in our commitment to the wider principles of ESG,” Thabet added.

TAQA will focus on the decarbonisation power and water supply, electrification across sectors, and demand-side management to support more efficient use of power and water.