On Wednesday, the Abu Dhabi National Energy Company (Taqa) announced a 12.3 percent year-on-year increase in net income, reaching Dh4.4 billion for the first half of 2024. The major utility company saw a 2.0 percent rise in revenue to Dh27.2 billion during the same period, boosted by contributions from the Sustainable Water Solutions Holding Company (SWS Holding), which also enhanced adjusted Ebitda and net income. Taqa disclosed that adjusted Ebitda stood at Dh10.9 billion, a 4.0 percent increase from the first half of 2023. The company noted that while net income rose by Dh0.5 billion (12.3 percent) compared to the previous year, it decreased by Dh9.2 billion when including one-off items.
Mohamed Hassan Alsuwaidi, Taqa's chairman, highlighted the group's sustained growth as a testament to its commitment to creating long-term value for stakeholders. He emphasized the strong financial performance, supported by an improved credit rating of AA by Fitch, and the strategic importance of integrating SWS Holding to transform Taqa into a leading vertically integrated utility with enhanced water treatment capabilities. Alsuwaidi also underscored Taqa's dedication to sustainable growth that harmonizes shareholder benefits with environmental and community stewardship.
Jasim Husain Thabet, Taqa's Group CEO and Managing Director, attributed the robust financial and operational performance to the continuous growth in the Transmission & Distribution business and the addition of SWS Holding. He noted that these income sources align with Taqa's goal to be an integrated utility leader, providing low-carbon power and water services. During this period, capital expenditure surged by 91 percent to Dh3.8 billion, driven by progress in desalination projects and the T&D business. Free cash flow generation declined to Dh4.3 billion, influenced by capital expenditure and working capital adjustments. The group's gross debt reduced to Dh58.6 billion from Dh61.7 billion at the end of 2023, primarily due to bond and loan repayments, partially offset by new project debt.
Thabet also mentioned Taqa's partnership with JERA to develop an industrial steam and electricity cogeneration plant in Saudi Arabia with SATORP, a joint venture between Saudi Aramco and TotalEnergies. Additionally, Taqa and its partners secured financial closure for the Juranah Independent Strategic Water Reservoir Project, expanding its T&D business beyond the UAE.
