TAQA Group Reports Full Year 2021 Net Income of AED 6.0 Billion
Abu Dhabi National Energy Company PJSC (TAQA), one of the largest listed integrated utilities in the region, reported consolidated financial results for the year ended December 31, 2021. TAQA delivered a very strong performance in 2021 underpinned by its utilities business and boosted by the recovery in commodity prices. The year also saw TAQA start to actively execute on its 2030 strategy for sustainable growth and returns. The results for the full year included the following highlights:
Financial highlights for full year 2021:
- Group revenues of AED 45.7 billion, 11% higher than the prior-year period, primarily due to higher commodity prices within the Oil & Gas segment.
- Adjusted EBITDA was AED 19.7 billion, up 23%, mainly reflecting higher revenues and improved income from associates, partially offset by higher expenses.
- Net income (TAQA-share) was AED 6.0 billion, an increase of AED 3.2 billion, with greater contribution from the Oil & Gas segment and reflecting the AED 1.5-billion post-tax impairment charge in the previous year.
- Capital expenditure was AED 4.7 billion, 26% higher than prior year, driven by expenditure in Transmission & Distribution, the Group’s largest segment.
- Strong free cash flows of AED 17.8 billion, further improving liquidity following the full repayment of corporate credit facilities in the first half of the year.
- Gross debt of AED 64.9 billion, down from AED 76.0 billion at the end of 2020, further improving the Group’s credit metrics.
Operational highlights:
- Transmission network availability for power and water of 98.4%, marginally lower versus the prior-year period.
- Generation global technical availability of 92.3%, lower compared to the prior period, mainly due to planned and unplanned maintenance within the UAE fleet.
- Oil & Gas average production volumes increased to 122.4 thousand barrels of oil equivalent per day (boepd), an increase of 4%, driven by higher production in Europe, in particular the United Kingdom.
Upon approval of the financial results, TAQA’s Board of Directors proposed a final cash dividend of AED 1.2 billion (1.1 fils per share). This will be the fourth and final quarterly dividend payment planned for the financial year of 2021, bringing total dividends for the year to AED 3.1 billion, in line with the Company’s dividend policy.
H.E. Mohamed Hassan Alsuwaidi, TAQA’s Chairman, commented: “In 2021, TAQA Group outlined an ambitious growth strategy, setting its sights on being the recognized low carbon power and water champion of Abu Dhabi and beyond. TAQA’s strategy put a stake in the ground, showcasing its commitment to decarbonization and growth with a clear roadmap to 2030. It immediately began executing this plan, including announcing a powerhouse partnership with Mubadala and ADNOC to become shareholders in one of the largest renewable energy companies in the world, under the Masdar brand.TAQA continues to evolve and grow at a rapid pace as a fully diversified and integrated utilities company, while maintaining standalone investment grade credit ratings and delivering attractive and stable returns to its shareholders.”
Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, commented: “While 2021 showcased the financial and operational strength of TAQA Group, it was also a success because of the commitment to excellence from our employees – our most important assets. As a result, we progressed in new areas such as green hydrogen and we achieved key milestones including the first water being produced from the Taweelah Reverse Osmosis plant – that once fully operational will be the largest of its kind in the world. Internationally we also moved forward on our growth plans with signing the Tanajib cogeneration and desalination project in the Kingdom of Saudi Arabia with Saudi Aramco.
We also became the partner of choice for decarbonizing industries such as ADNOC’s offshore operations which we are linking to the onshore grid enabling power to come from low carbon electricity. This has laid the groundwork for 2022, which began with publishing our first sustainability report– demonstrating our commitment to ESG and further supporting the UAE’s Net Zero by 2050 strategic initiative. We also announced the successful completion of the region’s largest green bond in January, which was 1.8 times oversubscribed by international investors. As we look ahead, I am confident that we will continue to add value and support the energy transition as we focus on growth, optimization and building capabilities in Abu Dhabi and beyond.”
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