Abu Dhabi’s Taqa Group announces net profit of 6 billion dirhams for 2021
Abu Dhabi National Energy Company (Taqa) has announced its consolidated financial results for the year ended December 31, 2021.
Taqa delivered a solid performance in 2021, supported by its utilities business and boosted by the recovery in commodity prices. The year also saw Taqa begin to actively execute its 2030 strategy for sustainable growth and returns.
The group’s turnover amounted to 45.7 billion dirhams, 11% more than the previous year, mainly due to the increase in the prices of raw materials in the oil and gas segment. Adjusted earnings before interest, tax, depreciation and amortization, or EBITDA, was 19.7 billion dirhams, up 23%, mainly reflecting higher revenues and improved income from associated companies, partially offset by expenses higher.
Net income (attributed to Taqa) was Dhs 6 billion, an increase of Dhs 3.2 billion, with a larger contribution from the oil and gas segment and also reflecting the post-tax impairment charge of Dhs 1.5 billion of Dhs in 2020. Capital expenditure was Dhs 4.7 billion, 26 percent. cent more than the previous year, driven by spending on transport and distribution, the group’s largest segment.
The company recorded strong free cash flow of Dhs 17.8 billion, further improving liquidity after full repayment of corporate credit facilities in the first half of the year. Gross debt stood at Dhs 64.9 billion, compared to Dhs 76 billion at the end of 2020, further improving the group’s credit measures.
Taqa also reported that average oil and gas production volumes increased to 122,400 barrels of oil equivalent per day, or boepd, a 4% increase, driven by higher production in Europe, particularly in the United States. UK.
Upon approval of the financial results, Taqa’s Board of Directors proposed a final cash dividend of Dhs 1.2 billion (1.1 fils per share).
— TAQA (@TAQAGroup) February 11, 2022
Mohamed Hassan Alsuwaidi, Chairman of TAQA, said: “In 2021, Taqa Group has set out an ambitious growth strategy, aiming to become the recognized champion of low-carbon energy and water in Abu Dhabi. and beyond. Taqa’s strategy put a stake in the ground, showing its commitment to decarbonization and growth with a clear roadmap to 2030. It immediately began executing that plan, including announcing a powerful partnership with Mubadala and ADNOC to become shareholders of one of the largest renewable energy companies. worldwide, under the Masdar brand.
Jasim Husain Thabet, CEO and Managing Director of Taqa Group, said the company “has made progress in new areas such as green hydrogen” and reached “key milestones including the first production of water from ‘Taweelah reverse osmosis plant’. The plant, when fully operational, will be the largest of its kind in the world.
He said the company has moved forward with its growth plans, signing the Tanajib cogeneration and desalination project in Saudi Arabia with Saudi Aramco.
Thabet added: “We have also become the partner of choice for decarbonisation industries such as ADNOC’s offshore operations which we connect to the onshore grid allowing electricity to come from low carbon electricity. This laid the foundation for 2022, which began with the publication of our first sustainability report, demonstrating our commitment to ESG and further supporting the UAE’s Net Zero by 2050 strategic initiative. We also announced the success of the region’s largest green bond in January, which was oversubscribed 1.8 times by international investors.