Profit at Abu Dhabi’s Taqa falls 82% on one-off items

Net profit at Abu Dhabi National Energy Company (Taqa) dropped 82 percent to AED2.1 billion ($572 million) in the first quarter of 2024, from AED11.6 billion a year ago.

Taqa’s fall in profit was attributed to one-off items recognised in 2023.

Net income at Taqa, excluding the one-off items, increased by AED100 million, 6.9 percent higher than in the same quarter in 2023. Adjusted ebitda was AED5.5 billion, 4.9% up.

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Revenues rose 5 percent year on year to AED13.7 billion, thanks to a contribution from Sustainable Water Solutions Holding.

Taqa agreed last year to acquire 100 percent of SWS from Abu Dhabi Power Corporation, a majority shareholder.

The company remained committed to its ambition of being a champion of low-carbon power and water through the investments made, said group CEO Jasim Husain Thabet.

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Capital expenditure for the quarter was AED1.7 billion, 60.3 percent higher than in Q1 2023, driven mainly by construction costs at the Mirfa 2 reverse osmosis and Shuweihat 4 reverse osmosis desalination projects. 

Efficient management of water will play a vital role in achieving the UAE’s target of net zero emissions by 2050, Thabet said.

Gross debt was AED62.5 billion, up from AED61.7 billion at the end of 2023, reflecting project debt assumed on the acquisition of SWS Holding and investment in expanding the company’s desalination capacity.