The Abu Dhabi National Energy Company (TAQA), one of the largest listed integrated utility companies in Europe, the Middle East and Africa, reported solid half-year financial results with a 12.3 percent increase in net income to AED4.4 billion ($1.2 billion), excluding one-off items. However, the company’s net income dipped by AED9.2 billion when these one-off items were included.
TAQA’s group revenues rose 2 percent annually to AED27.2 billion mainly due to the contribution from SWS Holding, which also raised the EBITDA and net income. In addition, the company’s adjusted EBITDA rose 4 percent year-on-year to AED10.9 billion, while its gross debt declined from AED61.7 billion to AED58.6 billion during the first half of 2024.
Capital expenditures rise
TAQA also reported a 91 percent increase in capital expenditures to AED3.8 billion due mainly to the construction progress in the Mirfa 2 Reverse Osmosis (M2 RO) and Shuweihat 4 Reverse Osmosis (S4 RO) desalination projects.
“TAQA’s focus on executing projects that will further cement its leading market position remains steadfast. A notable milestone is the upcoming integration of SWS Holding, which will contribute to TAQA’s transformation into a vertically integrated utility leader with expanded expertise in water treatment,” stated Mohamed Hassan Alsuwaidi, chairman of TAQA.
Free cash flow generation declined by AED2.1 billion to AED 4.3 billion during H1 of 2024, reflecting the rise in capital expenditure and working capital movements.
Key projects
During the first half of 2024, TAQA witnessed several strategic projects and partnerships across its business. The company announced the financial closing for the Juranah Independent Strategic Water Reservoir Project in Makkah with Vision Invest and GIC Consortium.
In its generation business, the company announced the signing of a power and steam purchase agreement with SATORP, a joint venture company owned by Saudi Aramco and TotalEnergies. The agreement aims to develop a cogeneration plant for the strategic expansion of a petrochemical complex in Saudi Arabia.
During Q2 of 2024, TAQA’s Taweelah Reverse Osmosis Independent Water Plant commenced full commercial operations. The plant is one of the world’s largest and most efficient operational desalination operations of its kind with a capacity of around 200 million imperial gallons per day.
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Masdar’s strategic acquisitions
During the first half, Masdar also signed a definitive agreement with GEK TERNA to acquire 67 percent of Terna Energy. In addition, it announced plans to acquire a 50 percent stake in Terra-Gen, a North American renewable energy company, from Energy Capital Partners.
These acquisitions, expected to close by the end of 2024 pending regulatory approvals, will significantly contribute to Masdar’s goal of reaching 100 GW of global capacity by 2030.
“Looking ahead, TAQA remains dedicated to sustainable growth and progress that balances shareholder benefits with our stewardship of the environment and communities,” added Alsuwaidi.
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