The company said in a statement that the strong performance this quarter was due to strong and stable returns from its long-term contract business in the utilities sector, in addition to one-time returns resulting from TAQA’s acquisition of a 5% stake in ADNOC Gas.
The statement said the group achieved revenues of 13.1 billion dirhams (about 3.6 billion dollars), an increase of 6% compared to the same period last year. The company attributes this increase mainly to the increase in the wholesale supply tariff and the tariff linked to the use of the transmission network within the transmission and distribution sector.
كما بلغ صافي الدخل (حصة “طاقة”) 11.6 يادة قدرها 9.6 5 بالمئة من أسهم “أدنوك لل غاز”، والتي قابلها جئئئئئئ احتساب ضرائب مؤجلة لمرة واحدة بقيمة 1.2 مليار درهم تتعلق بضريبة الدخل على الشركات التي فُر العربية المتحدة وستطبَّق ابتداءً من 01 يناير 2024. وقد بلغ صافي الدخل من دون احgent ، مقارب لنفس الفترة من Last year.
Here are the most important financial results for the first quarter of 2023:
Earnings before interest, taxes and depreciation amounted to 5.3 billion dirhams, down 5%. Capital expenditure amounted to 1.1 billion dirhams, up 26% compared to the same period last year. Free cash flow amounted to 4.3 billion dirhams, up 31% compared to the same period last year, despite the increase in capital expenditure. Total debt stood at 59.8 billion dirhams, compared to 61.7 billion dirhams at the end of last year, 2022, which contributed to the continuous improvement of the group’s credit parameters.
The most significant strategic achievements of the first quarter of 2023:
Port 2 reverse osmosis desalination plant: TAQA and ENGIE have signed a water purchase agreement with Emirates Water and Electricity Company to build a reverse osmosis desalination plant with a capacity of 120 million gallons of water per day in Abu Dhabi, and this financing agreement is expected to be completed station in the near future. Al Taweelah B Independent Power and Water Desalination Plant: TAQA announced the acquisition of an additional 10% stake in Al Taweelah B Independent Power and Water Desalination Plant in Abu Dhabi, as well as the acquisition of a 25% stake in the operator and maintenance at this station. Reduction of greenhouse gas emissions in 2022: TAQA published its third sustainability report, in which it announced that it would reduce greenhouse gas emissions by 8% in 2022, which reinforces the company’s progress towards achieving its 2030 objectives. New Cash for the years 2023 -2025 dividend policy: After the strategic decision to maintain TAQA’s activity in the oil and gas sector, the shareholders approved during the Annual General Meeting held last March a new policy for the distribution of cash dividends for the years 2023-2025, so that the distributions include fixed profits .and variable profits. Under this new policy, fixed cash dividends will be distributed on a quarterly basis at 3.25 fils per share in 2023, 3.50 fils per share in 2024 and 3.75 fils per share in 2025. variable cash, they will be distributed Once a year and will be estimated based on a specific percentage of the annual net result of the Group’s activity in the oil and gas sector. A 5% stake in ADNOC Gas: TAQA and the Abu Dhabi National Oil Company (ADNOC) are linked to an extensive strategic partnership established by the two companies through the conclusion of a number of agreements, the most important of which is was the recent participation (with Mubadala Investment Company) in the equity ownership of the Abu Dhabi Company for future energy (Masdar), in addition to the $3.8 billion ADNOC marine operations decarbonization project. Based on this strong partnership, TAQA obtained from ADNOC a 5% stake in the total issued capital of ADNOC Gas, without any cash consideration for this stake. ADNOC Gas was listed on the Abu Dhabi Stock Exchange during the first quarter of 2023, and this stake is a valuable financial asset for TAQA. In addition, TAQA’s net income should increase, benefiting from the profits distributed by ADNOC Gas. According to the announced profit distribution policy at ADNOC Gas, TAQA expects to achieve profits of 298 million dirhams in 2023, increasing to 611 million dirhams in 2024. Expansion of infrastructure supporting the use of electric vehicles in cooperation with ADNOC Distribution TAQA and ADNOC Distribution have agreed to work together to launch a mobility joint venture, called E2GO, to establish and operate the infrastructure needed to charge electric vehicles in Abu Dhabi.
Operational highlights in the first quarter of 2023:
Availability in the electricity and water transmission networks was 98.1%, a slight increase from the 98% recorded in the same period last year. The commercial availability rate in the power generation sector worldwide reached 98.8%, compared to 97.3% recorded in the same period last year, thanks to the contribution of existing plants in the United Arab Emirates , in particular, to the realization of this increase. Average oil and gas production decreased to 119.9 thousand barrels of oil equivalent per day, a decrease of 5.52% compared to the same period in 2022. This decrease is mainly due to the natural decline in rates of production and the dismantling of certain Group assets. in the UK, which have become productive.
On this occasion, Jassim Thabet, Group CEO and Managing Director of Abu Dhabi National Energy Company (TAQA), said: “TAQA Group ended the first quarter of 2023 on a positive note, with a significant increase in our net income. through our acquisition of an interest in ADNOC Gas. Regardless, the company has made significant progress in implementing our growth strategy, as well as achieving consistent financial performance. On the growth side, we started the year by increasing our stake in Taweelah B’s independent power and water desalination plant, and we also took a stake in Responsible Company. operation and maintenance of this station, which has strengthened our capabilities in the field of operation and maintenance, which is one of the growth areas of our business. We have also partnered with Engie to build the “Marfa 2” reverse osmosis desalination plant with a capacity of 120 million gallons of desalinated water per day. This is an important additional step in our efforts to fulfill our commitment to expand our energy-efficient reverse osmosis system. In addition to the above, the shareholders of the company approved the new cash dividend distribution policy for the years 2023-2025, which includes fixed profits and variable profits to ensure the provision of attractive returns to shareholders, and in line with our constant policy. -changing business model.
According to the company’s new dividend policy.
In addition to TAQA’s achievements in the first quarter of 2023, the company recently completed the issuance of two tranches of first-class unsecured bonds, one worth $0.5 billion over five years and the other is worth $1.0 billion over ten years. years.
The successful issuance of these bonds was oversubscribed 10 times, in response to interest from international investors. This issue included the first green bonds issued by “TAQA”, and it came after the company announced its green financing framework, which it will apply when issuing bonds, sukuk, loans or other green debt instruments. In accordance with the green financing framework, the company will invest the funds generated by these instruments in green projects.
It should be noted that the company recently hosted the successful second edition of the World Utilities Conference in Abu Dhabi, which attracted a group of the most eminent personalities of the global utilities sector, including ministers from more than 20 countries to worldwide.
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