ABU DHABI, UAE: Abu Dhabi National Energy Company PJSC (TAQA), one of the largest listed integrated utilities in Europe, Middle East and Africa, reported its first half earnings for the period ending 30 June 2023.

TAQA’s performance was driven by strong and stable returns from its long-term contracted utilities business whilst it has remained focused on delivering its growth strategy.

TAQA recorded group revenues of AED 26.8 billion, 5% higher than the prior-year period, primarily due to higher pass-through bulk supply tariffs and transmission use of system within the Transmission and Distribution segment. However, adjusted EBITDA was AED 10.5 billion, down 7%, mainly due to a decline in contribution from the Oil & Gas segment on the back of lower realised oil and gas prices and reduced production.

Net income (TAQA share) was AED 13.5 billion, an increase of AED 9.2 billion, mainly driven by a one-off gain of AED 10.8 billion recognised on the acquisition of a 5% shareholding in ADNOC Gas, in part offset by a one-off AED 1.2 billion deferred tax liability associated with the introduction of UAE corporate income tax from 1 January 2024. Net income excluding these one-off items was AED 3.9 billion, 9% lower than the prior period, mainly due to lower contribution from the Oil & Gas segment.

Capital expenditure was AED 2.1 billion, 17% higher than the prior year as project execution picked up pace in the Transmission & Distribution segment. Free cash flow generation was AED 6.4 billion, 23% lower compared to the previous year. The decline was mainly driven by a lower contribution from the Oil & Gas segment. Gross debt was AED 61.7 billion, unchanged on the amount outstanding at the end of 2022.

On the operational front, TAQA achieved high levels of availability and reliability across its assets. Generation global commercial availability was 98.7%, compared to 97.5% in the prior year, with the UAE fleet performance in particular contributing to the increase. Transmission network availability for power and water was 98.2%, compared to 98.4%, marginally lower versus the prior-year period. Oil & Gas average production volumes decreased to 117 thousand barrels of oil equivalent per day (boepd), a decrease of 6% compared to 2022. This decrease is mainly due to the shutdown of operations in Iraq and the natural decline in production of late-life UK assets.

TAQA’s CEO, Jasim Husain Thabet, said: “We are pleased to report strong first half earnings for TAQA, reflecting our resilient business model and our focus on delivering our growth strategy. Our utilities business continues to provide us with stable and predictable cash flows, while our oil and gas business remains flexible and adaptable to market conditions. We have also made significant progress in advancing our strategic initiatives, such as acquiring a stake in ADNOC Gas, expanding our renewable energy portfolio, and enhancing our operational efficiency and sustainability performance. We remain confident in our ability to create long-term value for our shareholders and stakeholders.”

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