Energy Taqa profits down 17% despite rising revenue By Pramod Kumar August 14, 2023, 6:46 AM 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. Abu Dhabi’s Taqa to buy local water firm for $463m Taqa and Adnoc pair up on $2.4bn seawater project 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.
