Khaleej Times, Sunday, Nov 20, 2022 | Rabi Al Thani 25, 1444
Taqa 9-month net income surges 53% on higher commodity prices
Emairtes:
Abu Dhabi National Energy Company, popularly known
as Taqa, on Monday said its net income surged 53 per cent to Dh6.5 billion
during the first nine months of 2022 while group revenue climbed 14 per cent to
Dh38.7 billion due to higher commodity prices within the oil and gas segment.
In a statement, the Abu Dhabi-based one of the
largest listed integrated utilities in the region, attributed its strong
performance in January-September 2022 to stable contracted and regulated
utilities business and buoyant commodity prices.
It further said adjusted EBITDA rose 15 per cent
to Dh16.5 billion, benefiting from strong revenue growth while capital
expenditure declined by 28 per cent to Dh2.5 billion due to lower spend in the
transmission and distribution segment.
The group’s free cash flow position also improved
13 per cent to Dh12.8 billion due to higher cash generation and lower capital
expenditures. Cash, cash equivalents and undrawn corporate credit facilities
amounted to Dh24.7 billion at the end of the nine-month period.
Taqa attributed its strong performance in
January-September 2022 to stable contracted and regulated utilities
business and buoyant commodity prices.
Jasim Husain Thabet, Taqa’s group chief executive officer and managing director,
said the first nine-months of 2022 saw Taqa Group deliver another set of strong
financial results, reflecting strong performance across all our businesses.
“I am also pleased to note that we have continued to demonstrate our commitment
to our growth strategy and ESG. Last year, when Taqa launched its growth
strategy for 2030, we committed to becoming a company anchored in ESG
principles, and we have delivered on this promise by announcing our 2030 ESG
strategy, including interim greenhouse gas emissions (GHG) reductions targets,”
Thabet said.
“Under this strategy, we have committed to a 25 per cent reduction of scope 1
and 2 GHG emissions by 2030 across the Group, including a 33 per ent reduction
of UAE portfolio emissions compared to the 2019 baseline. This is a commitment
to absolute emissions reductions and a credible step towards achieving our
net-zero ambitions by 2050,” he said.
Operational highlights
Taqa further said its transmission network availability for power and water was
slightly improved to 98.6 per cent compared to 98.3 per cent in the prior-year
period. Generation global commercial availability was 97.8 per cent, slightly
higher than the 97.3 per cent figure in the same period last year while oil and
gas average production volumes were 123.1 thousand barrels of oil equivalent per
day (boepd), largely in line with the same period last year.
Upon approving the period’s financial results, Taqa’s board of directors also
declared an interim cash dividend of Dh675 million (0.60 fils per share). This
will be the third quarterly dividend payment planned for the financial year of
2022, in line with the company’s dividend policy.
While highlighting other highlights during the third quarter, Thabet said the
group announced the successful financial close of a $3.8 billion strategic
first-of its-kind project to power and significantly decarbonise Adnoc’s
offshore production operations. “We also signed agreements to invest, alongside
Mubadala, in the privatization of two gas-fired power generation plants in the
Talimarjan complex in Uzbekistan, representing another credible milestone
towards our commitment to deliver 15GW of new international capacity by 2030.
“We also refinanced our $3.5 billion revolving credit facility allowing us to
extend the final maturity date of the facility from 2024 to 2027 whilst also
reducing cost, as well as completing the $1.09 billion long-term refinancing of
the MIRFA International Power & Water Plant,” he said
“On the oil and gas front, we successfully concluded our strategic review of our
operations and concluded that we would retain the majority of our assets, whilst
entering binding agreements with Waldorf Energy Netherlands BV to sell the
upstream oil and gas business in the Netherlands. 2022 is shaping up to be one
of TAQA’s most productive years to date and I am confident that we will continue
on this trajectory for the remainder of the year,” he said.