ABU DHABI: Abu Dhabi National Energy Company PJSC (‘TAQA’ or ‘the Group’) reported its earnings for the period ending 30 June 2024. TAQA delivered solid financial results, supported by stable returns from its Transmission and Distribution business and further strengthened by the contribution from Sustainable Water Solutions Holding Company PJSC (SWS Holding).
Financial highlights
Group revenues were AED 27.2 billion, 2.0% higher than the prior-year period, due to the contribution from SWS Holding, which also increased adjusted EBITDA and net income.
Adjusted EBITDA was AED 10.9 billion, 4.0% higher than the first half of 2023.
Net income was AED 4.4 billion, up AED 0.5 billion (12.3%) compared to the prior year, excluding one off items, but a decrease of AED 9.2 billion when these one-off items are included.
Capital expenditure was AED 3.8 billion, 91% higher than prior year driven mainly by construction progress in the Mirfa 2 Reverse Osmosis (M2 RO) and Shuweihat 4 Reverse Osmosis (S4 RO) desalinat
ion projects as well as timing and phasing of project execution within the TandD business.
Free cash flow generation was AED 4.3 billion, AED 2.1 billion lower than the previous year, primarily reflecting capital expenditure on the development of M2 RO and S4 RO desalination projects and working capital movements.
Gross debt was AED 58.6 billion, down from AED 61.7 billion at the end of 2023, primarily due to the repayment of AED 3.5 billion of matured corporate bonds and scheduled loan repayments of AED 1.5 billion. This decrease was partially offset by an additional AED 1.5 billion in project debt from the acquisition of SWS Holding and AED 0.6 billion from new project debt to fund the development of the M2 RO and S4 RO projects.
Mohamed Hassan Alsuwaidi, Chairman of TAQA, commented: ‘TAQA’s continued growth during the first half of 2024 is a result of its unwavering commitment to unlocking long-term value for stakeholders. The Group has consistently achieved strong financial results, underpinned by an
improved credit rating of AA by Fitch, demonstrating the resilience of its balance sheet.
TAQA’s focus on executing projects that will further cement its leading market position remains steadfast. A notable milestone is the upcoming integration of SWS Holding, which will contribute to TAQA’s transformation into a vertically integrated utility leader with expanded expertise in water treatment.
Looking ahead, TAQA remains dedicated to sustainable growth and progress that balances shareholder benefits with our stewardship of the environment and communities.’
Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, commented: ‘TAQA’s robust financial and operational performance in the first six months of 2024 was driven by the sustained growth across the Transmission and Distribution business, and bolstered by the welcome addition of SWS Holding. These reliable sources of income align with TAQA’s ambition to be an integrated utility champion, providing low-carbon power and water to the
communities it serves and creating value for stakeholders. During this period, TAQA also remained focused on delivering on key strategic projects.
Source : Emirates News Agency