Abu Dhabi National Energy Company PJSC (TAQA), one of the largest listed integrated utilities in the region, reported consolidated financial results for the period ended June 30, 2022.

TAQA reported a performance strengthened by its stable contracted and regulated utilities business and buoyant commodity prices.

The Group posted revenues of AED 25.4 billion, 15% higher than the prior-year period (AED 22.2 billion), attributable to higher commodity prices within the Oil & Gas segment.

Adjusted EBITDA was AED 11.3 billion, up 15% (H1 2021 AED 9.9 billion), mainly reflecting higher revenues, partially offset by higher expenses.

Net income (TAQA-share) was AED 4.3 billion, 50% higher than the prior-year period

(AED 2.9 billion), with greater contribution from the Oil & Gas segment.

Capital expenditure was AED 1.8 billion, 10% lower than the prior-year period (AED 2.0 billion), mainly driven by lower expenditure in the Transmission & Distribution segment.

Free cash flow was AED 8.3 billion, 11% higher than the same period last year (AED 7.4 billion), maintaining significant liquidity (AED 22.3 billion in cash and cash equivalents and undrawn corporate credit facilities).

In Q2 2022, TAQA posted a 63% increase net profit to AED2.31 billion ($629 million) as higher oil & gas prices boosted revenues. Total revenue for the period was nearly 10% higher at AED13 billion versus AED11.86 billion in the year ago period, as per company statement.

TAQA’s Board of Directors also declared an interim cash dividend of AED 675 million (0.60 fils per share). This will be the second quarterly dividend payment planned for the financial year of 2022, in line with the Company’s dividend policy.

H.E. Mohamed Hassan Alsuwaidi, Chairman of TAQA Group, commented, “TAQA Group has continued to deliver on its growth ambitions to be the low carbon power and water champion of Abu Dhabi and beyond, and this is reflected in its results for the first half of the year. Notably, we have made progress on our clean energy journey having entered into binding agreements for the acquisition of a stake in Masdar. The transaction between Mubadala, ADNOC and TAQA will create a global clean energy powerhouse that consolidates renewable energy and green hydrogen efforts under a unified brand and further accelerate TAQA’s growth trajectory.”

Meanwhile, Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, noted, “Highlights for the first half include the issue of our first green bond linked to Noor Abu Dhabi for international investors and launched our second sustainability report with interim emissions targets for 2030 to be articulated later this year. In addition, we announced that we expect to acquire a stake in EGA’s power assets, increasing our UAE-based capacity to more than 22 gigawatts, in line with TAQA’s growth strategy to increase domestic capacity to 30 gigawatts by 2030. We also listed nine TAQA-issued bonds on the Abu Dhabi Securities Exchange, an important milestone for local and regional investors and strengthening the Emirate’s debt capital market.”