Taqa first-half profit falls despite rising revenues

Wam

Abu Dhabi National Energy Company (Taqa) said net profit attributable to shareholders fell 68 percent year on year to AED4.4 billion ($1.2 billion) in the first half of 2024.

Revenues reached AED27 billion, up 2 percent than the prior year’s period, due to the contribution from Sustainable Water Solutions Holding Company, which was acquired in June 2023.

Capital expenditures increased 91 percent to nearly AED4 billion due to the construction of the Mirfa 2 and Shuweihat 4 reverse osmosis desalination projects.

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Gross debt was down to AED59 billion from AED62 billion at the end of 2023, primarily due to the repayment of AED3.5 billion of matured corporate bonds and scheduled loan repayments of AED1.5 billion.

Oil and gas average production volumes fell 8 percent year on year to 104,900 barrels of oil equivalent per day.

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The fall was due to the natural decline in production and decommissioning activity associated with the group’s late-life UK assets.

Taqa said net profit rose 21 percent to AED2.3 billion in the second quarter of 2024 from AED1.9 billion a year ago. Revenue fell 2 percent annually to AED13.5 billion.