Dubai: The Abu Dhabi utility giant Taqa's 9-month net income totalled a hefty Dh15 billion, which is Dh8.5 billion higher from last year.
But the total includes two significant one-offs - a one-off gain of Dh10.8 billion based on the 5 per cent shareholding in Adnoc Gas. But this was in 'part offset' by a one-off Dh1.2 billion deferred tax liability associated with the UAE corporate tax from January 1, 2024.
The net income excluding these one-off items was Dh5.4 billion, which is 17 per cent lower than the year past. This was mainly due to 'lower contribution from the oil and gas segment'.
Group-wide revenues remained unchanged at Dh39.5 billion, as 'higher pass-through bulk supply tariffs and transmission use offset a decline in oil and gas revenue'.
Growth 'agenda'
"I am pleased to note we have continued to deliver on Taqa’s growth agenda with project execution across the transmission and distribution segment, further supported by a pickup in regulated capital expenditure," said Jasim Husain Thabet, Taqa’s Group CEO and Managing Director.
"During the third quarter of 2023, we reached financial close on a Dh8.3 billion sustainable water supply project in collaboration with Adnoc as Taqa continues to be a partner of choice for industrial players and their decarbonisation ambitions towards Net Zero."
Oil and gas division
In the year to end September, Taqa's capex came to Dh3.3 billion, 34 per cent higher, as 'project execution picked up pace in the transmission and distribution segment'.
The free cash flow generation totaled Dh10.2 billion, which is 20 per cent lower year-on-year, and stemmed from lower contribution in the oil and gas segment.
Taqa’s growth has laid the foundation for achieving sustainable growth, putting us on the path towards a low carbon future whilst maintaining attractive returns for shareholders and helping to deliver energy security in the markets we serve
Revised targets
The company has revised upwards its new power and water generation capacity assets, while 'maintaining' its transmission and distribution infrastructure investment. The updated plan also targets a higher share of renewables within its portfolio by 2030.
“We approach the year-end with positive momentum as Taqa continues to expand its footprint domestically and internationally in line with our revised growth targets," said Thabet.
"Our rapid expansion have made it imperative to align our targets to the evolving ambition of the business while delivering on our promise to our stakeholders. Taqa is an excellent example of the energy transition in action as we turn ambition into tangible outcomes to support the UAE’s decarbonisation efforts." Taqa’s growth has laid the foundation for achieving sustainable growth, putting us on the path towards a low carbon future whilst maintaining attractive returns for our shareholders and helping to deliver energy security in the markets we serve.”
