Abu Dhabi National Energy Company (TAQA) reported today its earnings for 2024, posting a remarkable financial performance underpinned by robust operations across its utilities business and bolstered by contributions from TAQA Water Solutions.
The group’s revenues increased 6.7 percent year-on-year to AED55.2 billion ($15.03 billion), driven by sustained growth in transmission and distribution and the consolidation of TAQA Water Solutions.
Meanwhile, net income reached AED7.1 billion ($1.93 billion), up 1.5 percent compared to the prior year, excluding one-off items related to the acquisition of a 5 percent stake in ADNOC Gas and an AED1.1 billion deferred tax charge due to the introduction of UAE corporate tax. Including these one-off items, net income recorded an AED9.6 billion year-on-year decline.
“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,” stated Mohamed Hassan Alsuwaidi, TAQA’s chairman.
EBITDA grows to AED21.4 billion
TAQA’s EBITDA rose 5.9 percent annually to AED21.4 billion, excluding the AED10.8 billion related to the acquisition of a 5 percent stake in ADNOC Gas. Including this one-off item, EBITDA saw a decrease of 31 percent year-on-year.
The group’s capital expenditure increased by 63.8 percent to AED9.2 billion, primarily driven by construction progress in the Mirfa 2 Reverse Osmosis and Shuweihat 4 Reverse Osmosis desalination projects. Meanwhile, free cash flow generation amounted to AED2.6 billion, down from AED13.9 billion in 2023.
TAQA’s gross debt was AED64.1 billion, up from AED 61.7 billion at the end of 2023, primarily due to the issuance of an aggregate AED6.4 billion in 7-year and 12-year dual-tranche corporate bonds and the consolidation of AED1.5 billion in project debt from the acquisition of SWS Holding.
TAQA Water Solutions posts strong operational performance
TAQA’s transmission network availability for power and water reached 98.7 percent, marginally higher than 98.4 percent in 2023. The company’s generation global commercial availability also marginally improved to 98 percent from 97.9 percent in the previous year.
Meanwhile, Water Solutions’ asset availability stood at 95.3 percent, reflecting strong operational performance.
“On the water side, we also expanded our capabilities in water treatment and reuse through the integration of TAQA Water Solutions, adding AED17.5 billion to our regulated asset value,” stated Jasim Husain Thabet, group CEO and managing director of TAQA.
However, oil and gas production decreased 5.9 percent year-on-year to 101.4 mboe/d. TAQA attributed this fall to the natural decline in production and decommissioning activity, primarily as a result of the cessation of production of four UK assets as the company transitions its focus towards safe and efficient decommissioning.
TAQA expands regional and global footprint in 2024
2024 was a milestone year for TAQA, highlighted by the merger of the Abu Dhabi Distribution Company and Al Ain Distribution Company under the new TAQA Distribution brand, alongside the rebranding of the group’s other operating entities in the UAE. These changes streamline the company’s operations and strengthen customer service offerings across Abu Dhabi, setting the stage for future growth.
Internationally, TAQA made notable progress, particularly in Saudi Arabia where it reached financial close for two projects, the Juranah Strategic Water Reservoir in the Makkah region and the Najim Cogeneration Plant in Jubail.
The group also signed project agreements with partners to develop two high-efficiency gas power plants, one each in Rumah and Nairyah, with a total capacity of 3.6 GW, further strengthening its presence in the Kingdom.
Through Masdar, TAQA also took significant steps toward achieving its 2030 target of 100 GW of global renewable capacity, with several key acquisitions, including Terra-Gen in the U.S., Terna Energy and Saeta in Europe as well as a significant share in Endesa’s renewables portfolio in Spain.
“As we look ahead, TAQA remains focused on delivering its 2030 strategy by investing in critical infrastructure, driving innovation, and expanding internationally. I am proud of our achievements in 2024, and I am confident in our ability to deliver reliable and sustainable energy and water solutions while creating long-term value for all our stakeholders,” added Thabet.
