Abu Dhabi utility giant TAQA's 2023 revenue hits Dh51.7b; 2023 dividend at Dh4.4b

Dubai: The Abu Dhabi utility company TAQA’s 2023 net income powered up to Dh16.7 billion (higher by 107 per cent) on a whopping Dh51.7 billion revenue.

The income gain was also partly because of the accounting of TAQA’s 5 per cent equity stake in ADNOC Gas, which too is listed on ADX.

The Board of Directors has proposed a final cash dividend of 2 fils a share (equalling a payout of Dh2.2 billion), including a variable dividend of 0.7 fils a share (of Dh800 million). This will bring the full-year dividend to 3.95 fil a share (around Dh4.4 billion).

In the medium term, the company, which has a fairly sizeable energy operations too, plans a total spend of Dh75 billion by 2030 to achieve its expansion targets.

Boost to revenue

The 3 per cent rise in group revenues came about from 'higher pass-through bulk supply tariffs. And improved allowances under the Regulatory Control 2 (RC2) regime within the transmission and distribution segment offset a decline in oil and gas revenue.

Where the Dh75b will go into

This is made up of a Dh40 billion expenditure on UAE-based transmission and distribution networks. This is line with the expenditure announced in its 2021 corporate strategy.

The remaining Dh35 billion is allocated for the generation business, with 55 per cent of this total expected to be invested in Masdar.

"Our achievements in 2023 serve as a foundation for further growth, which will include organic and inorganic expansion as well as substantial investment into power and water capacity and UAE-based transmission and distribution networks," said Mohamed Hassan Alsuwaidi, Chairman.

Reasons for the heavy spending spree

TAQA has  announced 'significantly' higher targets for 2030 to reflect:

"Focused on delivering our growth agenda, our capital expenditure increased significantly during the year, paving the way for the company’s Dh75 billion 2030 investment pipeline as we expand our power and water capacity and UAE-based transmission and distribution networks," said Jasim Husain Thabet, TAQA’s Group CEO and Managing Director.