Abu Dhabi’s TAQA changes dividend policy, to include a ‘variable’ payout as well

Dubai: The Abu Dhabi utility giant TAQA has changed its dividend policy, and will now include a fixed and variable payout strategy.

The company expects to pay a fixed dividend per share, derived from earnings from utility services, of 3.25 fils in 2023, 3.50 fils in 2024 and 3.75 fils in 2025. In line with the past policy, TAQA will continue to pay these fixed dividends quarterly.

In addition, it plans to pay a variable dividend based on a discretionary percentage of the company’s net profit from the oil and gas business. The variable dividend is to paid annually and with approval at the relevant Annual General Assembly.

TAQA has announced a special dividend of 2.1 fils a share (and 1.2 fils a share for Q4-22), which, in addition to the interim dividends of 0.6 fils/share for each of fhe first three quarters, will bring the total dividends for 2022 to 5.1 fils (or Dh5.73 billion payout in total).

In February, TAQA reported its 2022 net income increasing to Dh8 billion. The strong results were brought on by the utilities business and ‘boosted by the strong recovery in commodity prices’.

Jasim Husain Thabet, Group CEO and Managing Director, said: “TAQA’s robust and consistent financial performance and strong credit ratings over the past three years have meant that as a company, we have been able to maintain a progressive dividend policy for our shareholders. The new policy announced is an evolution of the quarterly policy we announced in 2020.

“Shareholders will enjoy a fixed return from our utilities business, which has long-term and predictable contracted earnings, and a discretionary variable dividend based on the annual net profit of our oil & gas business. As a company we offer a compelling investment proposition as we harness the opportunities the energy transition is providing, and we remain focused on growing our utilities business whilst maintaining our commitment to our ESG targets.”