TAQA Reports AED 7.1 Billion Net Income For 2024 Amid Growth In Transmission And Distribution

Abu Dhabi National Energy Company PJSC, known as TAQA, has disclosed its financial performance for the year ending 31st December 2024. The company experienced a 6.7% rise in revenues, reaching AED55.2 billion. This growth was primarily due to ongoing expansion in Transmission & Distribution (T&D) and the integration of TAQA Water Solutions (TAQA WS).

TAQA's net income stood at AED7.1 billion, marking a 1.5% increase from the previous year when excluding specific items. These items included an AED10.8 billion acquisition of a 5% stake in ADNOC Gas and an AED1.1 billion deferred tax charge due to new UAE corporate tax regulations. Including these factors, net income saw a decline of AED9.6 billion compared to the previous year.

The company's EBITDA reached AED21.4 billion, reflecting a 5.9% increase from the prior year, excluding the acquisition-related costs for ADNOC Gas shares. Capital expenditure surged by 63.8%, amounting to AED9.2 billion, largely driven by progress in desalination projects like Mirfa 2 Reverse Osmosis (M2 RO) and Shuweihat 4 Reverse Osmosis (S4 RO), as well as project execution timing within T&D and TAQA WS inclusion.

Free cash flow generation decreased significantly to AED2.6 billion from AED13.9 billion in 2023. This reduction was attributed to increased investments in Masdar, capital spending across Generation, T&D, Water Solutions, and accelerated decommissioning activities within oil and gas sectors.

Mohamed Hassan Alsuwaidi, Chairman of TAQA, remarked on the company's achievements: "2024 was a pivotal year for TAQA as it further strengthened its position as a global leader in low-carbon power and water both in the UAE and abroad. TAQA's strong financial results for the year as well as the credit rating of AA by Fitch, which highlights the resilience of its balance sheet, are testimony to this."

Operational Enhancements

Jasim Husain Thabet, Group CEO and Managing Director of TAQA, highlighted significant operational changes: "The year was a milestone for TAQA, highlighted by the merger of Abu Dhabi Distribution Company and Al Ain Distribution Company under the new TAQA Distribution brand, alongside the rebranding of our other operating entities in the UAE."

This restructuring aims to enhance customer service across Abu Dhabi while preparing for future growth opportunities.

The financial outcomes reflect TAQA's strategic focus on expanding its low-carbon energy footprint globally while managing operational efficiencies within its core markets.

With inputs from WAM