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Taqa caps 2024 with $1.9bn net income

13 February 2025

Abu Dhabi National Energy Company (Taqa) completed its full 2024 fiscal year with a net income of AED7.1bn ($1.9bn) on the back of revenues that reached AED55.2bn.

The previous year’s net income is only 1.5% higher compared to the prior year, excluding one-off items worth AED10.8bn related to the acquisition of a 5% stake in Adnoc Gas and AED1.1bn deferred tax charge due to the introduction of the UAE corporate tax.

The company’s ebitda rose 5.9%, to AED21.4bn, in 2024. However, this declined by 31% compared to the prior year if the AED10.8bn acquisition of a 5% stake in Adnoc Gas is considered.

The firm’s capital expenditure rose by 63.8% due to the construction of the Mirfa 2 and Shuweihat 4 seawater reverse osmosis (SWRO) plants, as well as the “timing and phasing of project execution” within its transmission and distribution (T&D) division and the inclusion of Taqa Water Solutions, formerly known as SWS Holding before its acquisition by Taqa last year.

Taqa’s free cash flow generation dipped from AED13.9bn in 2023 to AED2.6bn last year, reflecting “increased investments in Masdar, capital investment across generation, T&D and water solutions, and the acceleration of decommissioning activities within oil and gas”.

Gross debt rose from AED61.7bn at the end of 2023 to AED64.1bn due to the issuance of an aggregate AED6.4bn in seven-year and 12-year dual-tranche corporate bonds, consolidation of AED1.5bn in project debt from the acquisition of SWS Holding and AED1.4bn for the construction of the Mirffa 2 and Shuweihat 4 desalination projects.

This was offset by the repayment of AED3.5bn in matured corporate bonds, AED2.9bn in scheduled loan repayments and AED500m of other minor movements.

Some of the firm’s highlights in 2024 included merging Abu Dhabi Distribution Company (ADDC) and Al-Ain Distribution Company (AADC) into one brand, known as Taqa Distribution.

Taqa also continued to focus on Saudi Arabia, having reached financial close with its partners last year for the Juranah independent strategic water reservoir project and the Najim cogeneration plant project.

Along with partners Japan’s Jera and the Saudi firm Albawani, Taqa signed two 25-year power-purchase agreements with the Saudi principal buyer last year for the Rumah 2 and Nairiyah 2 combined-cycle gas turbine power plants, which have a combined generation capacity of 3.6GW.

Global expansion

Last year, Taqa acquired a 50% stake in US-based Terra-Gen Power Holdings II, while in Europe and through Abu Dhabi Future Energy Company (Masdar), it completed the acquisition of Saeta Yield from Brookfield Renewable.

Masdar and Spain’s Endesa finalised a partnership agreement last year, with Masdar acquiring a 49.99% stake in EGPE Solar, an Endesa subsidiary. Masdar also acquired Greece’s Terna Energy, which had an operating capacity of 1.2GW at the time of acquisition and is targeting 6GW of operational renewable capacity by 2029.

Oil and gas

In terms of the firm’s oil and gas business, it concluded the sale of its stake in the Atrush oil field in the Kurdish Region of Iraq in 2024.

The firm said it is also making “significant progress” in the UK, transitioning its focus towards safe and efficient decommissioning.

The firm ended production in the Northern North Sea with the cessation of production at its North Cormorant, Cormorant Alpha, Eider and Tern platforms.

Onshore gas production in the Netherlands also ceased in 2024, 50 years after the start of production in the Dutch Alkmaar region, said Taqa. 

 

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Jennifer Aguinaldo

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