TAQA's delivering quite a bit of value to shareholders. Image Credit: Supplied

The Abu Dhabi National Energy Co. (or TAQA), with a market cap of around Dh143.91 billion, recorded one empowered performance for the first-half of 2021, with group revenues of Dh22.2 billion. This is 11 per cent higher over the previous year, while net income came in at Dh2.9 billion, or an eye-catching 484 per cent increase.

This derived from higher contributions from the company’s oil and gas interests, while the first quarter 2020 results also included a Dh1.5 billion post-tax impairment charge. Overall, the latest results were boosted by higher oil prices and anticipation of economic recovery.

TAQA recorded strong free cashflow of Dh7.4 billion, allowing for the full repayment of corporate revolving credit facilities. The group has access to credit facilities with an unutilized balance of Dh13.4 billion as of June 30.The significant increase in the unutilized balance of Dh5.2 billion is the result of the group repaying in full its revolving credit facility in the second quarter of 2020, thus restoring the unutilized balance to Dh12.9 billion.

Solid on liquidity

The remaining unutilised Dh500 million relate to a number of small operational credit facilities available to some of the power generation companies. A strong liquidity position with net cash for the first-half of 2021 at Dh5.4 billion prompted the company to declare an interim cash dividend of Dh618 million.

TAQA is making full efforts to enter the green energy space by signing a MoU with Emirates Steel to develop a large-scale green hydrogen project. This would make for the first ‘green steel’ in the Middle East and North Africa. The move is aimed to reduce carbon emissions in steel manufacturing and create a sustainable manufacturing process to fulfil Abu Dhabi’s ambitions to be a major global hub in the impending green hydrogen boom.

The group’s sizeable earnings illustrates the strength and scale as a fully integrated utilities company with a global footprint and a diverse portfolio of operations. With two interim dividend payments for 2021 declared, fully repaying their corporate credit facilities, and an uptick in their available liquidity, the company is making notable efforts to increase shareholder value.