TAQA Group reports year 2022 net income of AED8 billion


ABU DHABI, Abu Dhabi National Energy Company (TAQA) reported positive financial results for the year ended 31st December 2022. TAQA delivered a very strong performance during the year, which was underpinned by the execution of it its growth strategy, its contracted utilities business and an uplift in commodities prices.

Group revenues were to the tune of AED50 billion, 10.3 percent higher than the prior-year period, primarily due to higher commodity prices within the Oil and Gas segment. Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortisation) was AED20.8 billion, up 6.7 percent.

Net income (TAQA-share) was AED8.0 billion, an increase of AED2 billion, with greater contribution from the Oil and Gas segment and lower depreciation expense supporting bottom-line growth. Capital expenditure was AED3.8 billion, 20.1 percent lower than previous year.

TAQA also made significant investments of AED4.5 billion in 2022 (2021: nil), relating to the acquisition of Masdar and the project to power and decarbonise ADNOC’s offshore production operations. Free cash flow generation remained strong for the year at AED13.8 billion, albeit 22.3 percent lower compared to the previous year, mainly due to payment for TAQA’s investment in Masdar.

Gross debt was AED61.7 billion, down from AED65 billion at the end of 2021, further improving the Group’s credit metrics.

In terms of operational highlights, the Group's transmission network availability for power and water of 98.6 percent was marginally higher, compared to 98.4 percent during the previous year.

Generation global commercial availability of 98.1 percent, with the UAE plants in particular, contributed to the slight increase, compared to 97.3 percent in the previous year.

Oil and Gas average production volumes have increased to 123,800 barrels of oil equivalent per day (boepd), an increase of 1.1 percent on 2021.

Mohamed Hassan Alsuwaidi, TAQA’s Chairman, commented, “TAQA’s record results in 2022 are a continuation of a positive trajectory that is anchored in compelling market opportunities, investment grade credit ratings and higher ESG ratings from global agencies. We continued to make steadfast contributions to the UAE’s decarbonisation goals, accelerating the energy transition and driving sustainable growth.

"As part of these efforts, the company acquired a controlling stake in national clean energy champion Masdar, which is set to allow TAQA to reach its 2030 objective of having more than 30 percent of its generation portfolio come from renewables ahead of target. With an exceptional track record, a market-leading position and a bright outlook, TAQA is ideally positioned to deliver on its strategic goals for 2030 and beyond.”

Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, commented, “In 2022, TAQA maintained its strategic focus, executing on its growth and ESG ambitions, demonstrating tangible progress on the targets we have set and showing our stakeholders that we deliver on our promises. Highlights include progressing with our growth strategy with the acquisition of Masdar, which is set to become one of the world’s largest clean energy companies.

“We took steps to enter a new market in Uzbekistan, we reached financial close for a key decarbonisation project for ADNOC’s offshore production facilities, and we announced our intention to acquire EGA’s power assets and connect the company to the Abu Dhabi grid. Both the ADNOC and EGA projects are examples of our role in supporting decarbonisation of hard to abate industries, underscoring why we joined the IRENA Decarbonisation Alliance during the year and reaffirming our commitment to our ESG Strategy,” he explained.

Upon approval of the financial results, TAQA’s Board of Directors also proposed a final cash dividend of 3.3 fils/share (AED3,713 million). This will be the fourth and final dividend payment planned for the financial year of 2022 bringing total dividends for the year to 5.1 fils/share (AED 5,738 million).

Source: Emirates News Agency