Stock TAQA
Taqa recorded lower realisations from its oil and gas division during first-half 2023, as lower energy prices and production weighed on the numbers. Image Credit: Shutterstock

Dubai: ADX-listed utility player Taqa has become the latest to offer a handsome dividend for its first-half 2023 performance, confirming Dh731 million after net income totalled Dh13.5 billion.

The income includes a one-off gain of Dh9.2 billion, after Dh10.8 billion was recognised from the acquisition of a 5 per cent shareholding in ADNOC Gas, the Abu Dhabi entity that recent went for an IPO. (On a per share basis, the dividend works out to 0.65 fils)

Last week, DEWA and Salik confirmed there will be shareholder payouts of their own. 

Taqa revenues in H1-23 came to Dh26.8 billion, up 5 per cent, but the adjusted EBITDA came in lower by 7 per cent to Dh10.5 billion. This was brought on by lower contribution from the oil and gas division, which saw lower ‘realised prices and reduced production’.

Overall, the period saw Taqa expand its out-of-the-UAE footprint, in Uzbekistan and the UK.

Dh 61.7 b

Taqa's gross debt, which has remained unchanged since end 2022

"The company delivered a strong and consistent financial performance, maintained its investment grade credit rating and ensured good returns for its shareholders through its dividend policy," said Mohamed Hassan Alsuwaidi, Chairman.

There was also the move to acquire SWS Holding, which will 'broaden the scope of Taqa’s activity in the regulated utility business by becoming a fully integrated water and wastewater treatment provider', the Chairman added..

"TAQA has also grown both domestically and internationally in 2023, as well as in the renewable energy sector where it has exceeded its 2030 target of having 30 per cent of its generation portfolio coming from renewable sources through the growth of Masdar."

In the UAE, Taqa confirmed the financial close on the Mirfa 2 RO plant, a seawater desalination plant that will use low-carbon and reverse osmosis technology. Another big one was a 'nano-filtered' sustainable water project with ADNOC to support the latter's onshore operations.

'Steady' run

"Taqa's steady performance in the first six months of 2023 demonstrates the company’s firm commitment to delivering on its promises and growth agenda which is underpinned by the strength of our balance-sheet," said Jasim Husain Thabet, CEO. "As a low carbon power and water champion, we have delivered on our growth ambitions in the first-half of 2023 both inside the UAE and abroad."