200329 adx
TAQA is listed on Abu Dhabi Securities Exchange (ADX), and this quarterly dividend move marks a first. Will other entities be able to follow? Image Credit: Gulf News Archive

Dubai: Abu Dhabi’s utility giant TAQA will become the first UAE listed company to offer quarterly dividends. This comes after shareholders approved the change in policy.

Thus, the company – one of the UAE’s largest companies in terms of market capitalisaton – will pay out 1.5 fils per share and Dh1.68 billion in total. (TAQA allows foreign investors to hold up to 49 per cent in the company.)

Final day to purchase shares eligible for interim dividend payment is December 21.

“This payment will constitute the first portion of the full-year 2020 dividend, which is expected to be 2.50 fils per share (Dh2.811 billion in total), which will grow by 10 per cent annually for the following two years (2.75 fils per share for 2021 and 3 fils per share for 2022).

“We are pleased to begin delivery of TAQA’s new strategic imperatives, which include providing attractive and sustainable shareholder returns through the adoption of a progressive dividend policy," said Mohamed Hassan Al Suwaidi, Chairman. "These... steps to diversify the company’s investor base, improve the stock’s liquidity and support the significant efforts of our country’s leadership to encourage foreign capital inflows.”

Read More

Consolidated power

The new dividend policy recognizes TAQA’s increased scale and improved financial profile, resulting from the mega-transaction in July with Abu Dhabi Power Corporation (ADPower) that created one of the Top 10 regional entities in the utilities space. The merged entity's assets are worth approximately Dh191 billion.

"As TAQA continues to deliver on its core mandate – to supply energy and water reliably and sustainably to those we serve – we will balance funding growth, rewarding our shareholders and upholding our strong credit ratings," said Jasim Husain Thabet, CEO and Managing Director. "Today’s approval for TAQA’s new dividend policy reinforces the Board’s and shareholders’ confidence in the company’s financial strength and predictable cashflow as well as our growth plans for the future."

Taqa Quarterly Dividend
TAQA will progressively scale up the dividend payments over the next two years. Image Credit: TAQA