Stock TAQA
TAQA has been extending its reach to more markets outside of the UAE, whether through acquisitions or key project wins. The latter includes high-profile contracts in Saudi Arabia. Image Credit: Shutterstock

Dubai: The Abu Dhabi utility player TAQA clocked Dh27.2 billion as first-half 2024 revenues, a gain of 2 per cent from a year ago, helped by the contribution from its acquisition of SWS (Sustainable Water Solutions) Holding in June 2023.

SWS Holding, formerly known as Abu Dhabi Sewerage Services Company, was bought by TAQA for Dh1.7 billion. 

The SWS buy also helped with increased adjusted EBITDA and net income for TAQA, which totaled Dh4.4 billion, up 12.3 per cent (or Dh500 million) if one-off items are excluded. If those items are included, profit decreases by Dh9.2 billion. (The H1-23 profit was Dh13.6 billion.)

“TAQA's robust financial and operational performance in the first six months of 2024 was driven by the sustained growth across the transmission and distribution business, and bolstered by the welcome addition of SWS Holding," said Jasim Husain Thabet, Group CEO.

"These reliable sources of income align with TAQA’s ambition to be an integrated utility champion, providing low-carbon power and water to the communities it serves and creating value for stakeholder."

Q2-24 interim payout

The TAQA board has also approved an interim cash dividend of 0.70 fils per share - totaling approximately Dh787 million - for the second quarter of 2024. This will be paid in September.

"TAQA’s focus on executing projects that will further cement its leading market position remains steadfast," said Mohamed Hassan Alsuwaidi, Chairman. "A notable milestone is the upcoming integration of SWS Holding, which will contribute to TAQA’s transformation into a vertically integrated utility leader with expanded expertise in water treatment."

What SWS brings to TAQA
SWS Holding adds around Dh16 billion to TAQA’s existing regulated asset value of Dh75 billion. SWS has a network of sewer pipelines extending to over 12,000 kilometers; a sewage treatment capacity of approximately 1.3 million cubic meters per day from its 37 wholly owned treatment plants; and through a 60% ownership in two companies owning four sewage treatment plants in Abu Dhabi under the ‘Build, Own, Operate and Transfer’ (BOOT) model.

Saudi projects

Recent projects wins will make for a busy second-half and beyond. TAQA in partnership with Japan's JERA is in a power and steam purchase agreement with Satorp, a joint venture between Saudi Aramco and TotalEnergies. This will develop an industrial steam and electricity cogeneration plant in Saudi Arabia.

Also in Saudi Arabia, TAQA along with partners achieved financial closing of the Juranah Independent Strategic Water Reservoir Project, aligning with its 'strategy to expand the transmission and distribution business beyond the UAE', said Thabet.

Capital expenditure by end H1-24 was Dh3.8 billion, 91 per cent higher than a year ago, brought on by construction progress in the Mirfa 2 Reverse Osmosis (M2 RO) and Shuweihat 4 Reverse Osmosis (S4 RO) desalination projects as well as timing and phasing of project execution within the T&D business.