TAQA Group Reports AED 7.1 Billion Net Income and AED 55.2 Billion Revenue for 2024

Abu Dhabi National Energy Company PJSC (TAQA), one of the largest listed integrated utilities in Europe, the Middle East, and Africa, has announced its financial results for the year ending 31 December 2024. The Group delivered strong operational performance across its utilities business, supported by strategic investments and international expansion.

Financial Highlights

• Revenue Growth: TAQA’s revenues rose by 6.7% year-on-year, reaching AED 55.2 billion, driven by steady growth in Transmission & Distribution (T&D) and the consolidation of TAQA Water Solutions (TAQA WS).

• EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at AED 21.4 billion, marking a 5.9% increase, excluding the AED 10.8 billion one-off impact from the 5% stake acquisition in ADNOC Gas. Including this item, EBITDA declined by 31% year-on-year.

• Net Income: The Group recorded a net income of AED 7.1 billion, up 1.5% from the previous year, excluding one-off items. Including these, net income decreased by AED 9.6 billion.

• Capital Expenditure (Capex): Investment surged by 63.8%, reaching AED 9.2 billion, primarily due to key desalination projects (Mirfa 2 RO and Shuweihat 4 RO), T&D upgrades, and the inclusion of TAQA WS.

• Free Cash Flow: Generated AED 2.6 billion, a decline from AED 13.9 billion in 2023, attributed to increased investments in Masdar, Generation, T&D, and Water Solutions.

• Gross Debt: Increased to AED 64.1 billion, mainly due to the issuance of AED 6.4 billion in dual-tranche corporate bonds, project debt consolidation, and funding for desalination projects, offset by bond maturities and scheduled repayments.

Operational Highlights

• Transmission Network Availability: Improved to 98.7% (from 98.4% in 2023).

• Global Generation Availability: Slight increase to 98.0% (from 97.9%).

• Water Solutions Availability: Strong performance at 95.3%.

• Oil & Gas Production: Declined by 5.9% to 101.4 mboe/d, mainly due to natural production declines and decommissioning of four UK assets.

Strategic Developments

• TAQA Distribution Merger: Abu Dhabi Distribution Company (ADDC) and Al Ain Distribution Company (AADC) have been integrated into TAQA Distribution, aimed at enhancing customer experience and operational efficiency.

• New Brand Identity: TAQA launched a new brand identity to reinforce its leadership in low-carbon power and water solutions.

Key Expansion Projects

UAE:

• Taweelah RO Plant (200 MIGD) reached full commercial operation.

Saudi Arabia:

• Juranah Strategic Water Reservoir Project: Achieved financial close, supporting emergency municipal water demand in Makkah during Hajj.

• Najim Cogeneration Plant: Secured financial close for a 475 MW power and 452 tph steam cogeneration facility in Jubail.

• New Power Projects: TAQA, in partnership with JERA and Al Bawani, signed 25-year PPAs for two high-efficiency gas power plants in Rumah and Al Nairyah (3.6 GW total capacity).

International Expansion:

• North America: Masdar acquired a 50% stake in Terra-Gen Power Holdings II, adding 3.8 GW of renewable energy capacity in the US.

• Europe: Masdar expanded in Spain, Portugal, and Greece through strategic acquisitions:

  • Saeta Yield (745 MW operational, 1.6 GW pipeline).

  • Endesa (EGPE) Solar: Acquired a 49.99% stake in a 2 GW solar portfolio.

  • Terna Energy (1.2 GW operational, targeting 6 GW by 2029).

Water Sector Expansion:

• TAQA Water Solutions: Fully acquired SWS Holding, managing Abu Dhabi’s wastewater treatment and recycled water production, adding AED 17.5 billion in regulated asset value.

Oil & Gas Developments:

• Exit from Atrush Oil Field (Iraq) and North Sea Decommissioning in the UK.

• End of Dutch Onshore Gas Production after 50 years of operation.

Financial Strength and ESG Commitments

• Credit Rating Upgrade: Fitch upgraded TAQA to ‘AA’ from ‘AA-’.

• Green Bond Issuance: Raised USD 1.75 billion (AED 6.4 billion) in dual-tranche bonds, including a USD 850 million Green Bond.

• ESG Rating Upgrade: MSCI improved TAQA’s ESG rating to ‘A’ from ‘BBB’.

Leadership Statements

H.E. Mohamed Hassan Alsuwaidi, TAQA’s Chairman, commented: “2024 was a pivotal year for TAQA, reinforcing our global leadership in low-carbon power and water. Our strong financial performance and ‘AA’ credit rating from Fitch demonstrate the resilience of our business. The strategic expansion of TAQA Water Solutions and key international investments reflect our commitment to long-term growth and sustainability.”

Jasim Husain Thabet, Group CEO and Managing Director, added: “Our strong financial results were driven by robust operational performance and strategic initiatives, including the formation of TAQA Distribution and the expansion of our water sector capabilities. Internationally, we strengthened our presence in Saudi Arabia and North America, while Masdar made significant progress toward our 2030 target of 100 GW in global renewable capacity. Our financial strength and ESG commitments position us for sustainable growth in the years ahead.”

Dividend Proposal

TAQA’s Board proposed a final cash dividend of 2.1 fils per share, bringing the full-year dividend to 4.2 fils per share.