Abu Dhabi National Energy Company, also known as TAQA, reported a 107 percent surge in its full-year 2023 net profit at AED16.65 billion ($4.53 billion). The growth is attributed to robust demand for TAQA’s transmission and distribution services, coupled with strategic acquisitions and investments.
The profit increase was primarily fueled by a one-off gain of AED10.8 billion from the acquisition of a 5 percent shareholding in Adnoc Gas last year.
Revenue growth
The company’s revenue for 2023 stood at AED51.72 billion, a modest increase from AED50.05 billion in the previous year. Higher pass-through bulk supply tariffs contributed to this revenue growth.
Notably, revenue from TAQA’s power transmission and water distribution segment experienced a substantial uptick of approximately 19 percent. This contributed nearly AED31 billion to the company’s revenues in 2023.
However, revenue from the oil and gas business witnessed a decline to AED8.1 billion, down from AED10.13 billion in 2022. This decline is attributed to the broader market dynamics affecting oil prices.
Strategic investments
In a bid to bolster its asset base and drive growth, TAQA revised its growth targets in November, pledging AED75 billion in infrastructure investments. This includes a significant allocation of AED40 billion for UAE-based transmission and distribution networks. Moreover, it allocated the remaining funds to TAQA’s generation business.
The company aims to triple its gross power capacity to 150 gigawatts by 2030. Moreover, it aims for renewable energy to constitute over 65 percent of its energy mix, reflecting a commitment to sustainability and clean energy initiatives.
TAQA’s strategic position in its key markets, particularly Abu Dhabi, coupled with its status as a fully integrated local utilities champion, remains pivotal to its robust performance.
Read: ADNOC and bp to form gas joint venture to focus on Egypt
Strategic divestment and future outlook
In a recent development, TAQA announced the sale of its stake in the Atrush oilfield in the Iraqi Kurdish region. This signals a strategic realignment of its asset portfolio. Through this divestment, TAQA aims to align its investments with its long-term strategic objectives.
As TAQA continues to navigate evolving market dynamics and capitalize on growth opportunities, the company remains poised for sustained success and value creation for its stakeholders in the years to come.
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