Skip to content Skip to Search
Skip navigation

Taqa profits down 17% despite rising revenue

Abu Dhabi's Taqa will lead the operation and maintenance of Saudi Arabia's Juranah water reservoir project in Makkah Wam
Abu Dhabi's Taqa will lead the operation and maintenance of Saudi Arabia's Juranah water reservoir project in Makkah

Abu Dhabi National Energy Company (Taqa) said net profit for the second quarter of 2023 fell 17 percent to AED1.92 billion ($523 million) from SAR2.31 billion a year ago.

With assets estimated at AED200 billion, Taqa is the third largest listed company in the UAE and one of the top 10 utilities in Europe, the Middle East and Africa (Emea). The company’s share price at midday on Monday was up 2.37 percent.

Gross revenue rose 5 percent to AED13.67 billion in the three months to June 30, 2023, compared to AED13.01 billion in the previous year.

The oil major’s net income for the first half of 2023 surged to AED13.5 billion, rising 311 percent from AED4.28 billion.

The higher earnings were mainly driven by a one-off gain of AED10.8 billion recognised on the acquisition of a 5 percent shareholding in Adnoc Gas, which was partly offset by a one-off AED1.2 billion deferred tax liability associated with the introduction of UAE corporate income tax from January 1, 2024.

Net income excluding these one-off items stood at AED3.9 billion, 9 percent lower than the prior period, mainly due to a lower contribution from the oil and gas segment.

Revenue stood at AED26.8 billion in the first six months, five percent higher year on year, driven by higher pass-through bulk supply tariffs and transmission use of systems within the transmission and distribution segment.

However, free cash flow generation was at AED6.4 billion, 23 percent lower year on year.

Capital expenditure for the six months reached AED2.1 billion, 17 percent higher than last year. The group’s total available liquidity as of June 30, 2023, was AED23.7 billion, while total debt stood at AED61.7 billion.

Taqa’s group CEO and managing director Jasim Husain Thabet said: “As a low carbon power and water champion, we have delivered on our growth ambitions in the first half of 2023 both inside the UAE and abroad.”

The company’s board declared a second interim cash dividend for 2023 of AED731 million (0.65 fils per share) in line with the new dividend policy.

Latest articles

Turkey foreign property sales

Foreigners turning back on Turkish real estate

Foreign buyers are increasingly shunning the Turkish property market, wary of high prices, the expensive cost of living and a less welcoming environment for overseas real estate investors. There were only 2,064 residential units sold to foreign buyers in May, 35 percent down on the same month last year, data issued by the state statistics […]

Adult, Male, Man

UAE to invest in Turkey’s economic sectors says minister

The UAE is willing to invest across numerous sectors in Turkey, said Emirati energy and infrastructure minister Suhail Al Mazrouei. The Gulf state is exploring opportunities in the energy, agriculture, transportation, tourism and other sectors, state-run Anadolu Agency (AA) news agency reported, citing the minister on the sidelines of the St. Petersburg International Economic Forum. […]

Rothschild Saudi

Edmond de Rothschild to run funding vehicle for Saudi projects

The Edmond de Rothschild Group is establishing a funding vehicle for infrastructure projects in Saudi Arabia along with the local firm SNB Capital, as part of a deal in which the Swiss investment bank will set up offices in the country.  Saudi Arabia’s massive economic diversification programme has run into financial obstacles as it faces […]

2KEY8G1 Emirates Airline Airbus A380 aircraft landing. Aerial view of Emirates Airlines A380-800 airplane. An Emirates plane coming in to land at LAX; a spokesperson for Emirates said the contraventions were for safety reasons

US fines Emirates for operating in prohibited airspace

Emirates has been fined $1.5 million by the US Transportation Department for operating flights carrying JetBlue Airways’ JBLU.O designator code in prohibited airspace. The transportation department said that between December 2021 and August 2022, Emirates operated a significant number of flights carrying the JetBlue Airways code between the United Arab Emirates and the United States […]