Abu Dhabi National Energy Company “TAQA” delivered a strong performance in 2021, supported by its utilities business and driven by improved commodity prices.
Last year saw TAQA start implementing its “2030” strategy, which aims to achieve returns and sustainable growth.
The group achieved revenues of AED 45.7 billion, an increase of 11% compared to the same period in 2020, mainly due to the increase in commodity prices in the oil and gas sector.
Adjusted EBITDA amounted to AED 19.7 billion, an increase of 23%, which mainly reflects higher revenues and improvement in income from associates, partially offset by an increase in expenses, while net income (“TAQA” share) amounted to 6 billion dirhams, an increase of 3.2 billion dirhams with a significant additional contribution from the oil and gas sector, in addition to the fact that the year 2020 had included a decrease in the book value of oil and gas assets of 1.5 billion dirhams following tax.
The value of capital expenditure amounted to 4.7 billion dirhams, an increase of 26% compared to the same period in 2020, as a result of spending on the transmission and distribution business, which is the largest business sector in the group.
The company recorded strong levels of free cash flows, which amounted to 17.8 billion dirhams, which reinforced the improvement in cash flow, following the full payment of the company’s credit facilities during the first half of the year, while the total debt amounted to 64.9 billion dirhams, down from the level of 76.0 billion dirhams at the end of the year. 2020, which contributed to the further improvement of the group’s credit metrics.
Within the framework of the operational achievements, the availability rate in the electricity and water transmission networks reached 98.4%, a slight decrease compared to the same period in 2020, while the technical availability rate in the electricity generation works in “TAQA” projects around the world reached 92.3%, a slight decrease compared to the same period. From the year 2020 mainly due to planned and unplanned maintenance work at stations within the country.
The average production of oil and gas rose to 122.4 thousand barrels of oil equivalent per day, an increase of 4% as a result of the increase in production in the “TAQA” business in Europe, particularly in the United Kingdom.
After TAQA’s Board of Directors approved the financial results for the year 2021, the board proposed the distribution of the final payment of cash dividends of 1.2 billion dirhams (1.1 fils per share). This is the fourth and final batch of quarterly cash dividends planned for the fiscal year 2021, bringing the total distributions for the fiscal year to AED 3.1 billion, in accordance with the company’s dividend distribution policy on a quarterly basis.
Mohammed Hassan Al Suwaidi, Chairman of the Board of Directors of Abu Dhabi National Energy Company “TAQA,” said: “In 2021, the group has set out an ambitious growth strategy, and has set its goal of becoming the leading low-carbon utility company in Abu Dhabi and beyond. This strategy embodies TAQA’s firm commitment to the pursuit of Decarbonization and growth according to a clear roadmap until 2030.
He added: “TAQA” has actually started implementing this strategy by announcing the launch of a strategic partnership with the Abu Dhabi National Oil Company “ADNOC” and the Mubadala Investment Company “Mubadala”, so that these three leading Emirati companies will participate in one of the largest renewable energy companies in the world. Under the umbrella of the Abu Dhabi Future Energy Company “Masdar”.
“TAQA” continues to achieve progress and growth at a rapid pace as an integrated and diversified utility company, while maintaining its independent credit rating of “investment”, in addition to achieving attractive and stable returns for the benefit of its shareholders.
Jassim Hussain Thabet, Group CEO and Managing Director of the company, said: “2021 demonstrated the strong position that TAQA occupies at the financial and operational levels, as well as the successes we have achieved thanks to the commitment of our employees to excellence, who are our most important resource. As a result, we have made progress in New areas such as green hydrogen, and we have achieved major achievements, including, but not limited to, the production of the first desalinated water in the “Al Taweelah” plant using reverse osmosis technology, which will become the largest plant of its kind in the world when fully operational.
He added, “Internationally, we have also advanced our growth plans by signing the Tanajib co-production project for electricity generation and water desalination in Saudi Arabia, in cooperation with Aramco.”
He added, “We have also become the preferred partner in the field of decarbonization through our partnership with ADNOC, which we are currently working on linking its marine operations with our onshore electricity network, which will enable the supply of low-carbon electricity to these operations.”
This laid the necessary foundations for the year 2022, which began with the issuance of our first sustainability report, in order to consolidate our commitment to the principles and practices of environmental and community governance, and to support the implementation of the strategic initiative launched by the UAE with the aim of achieving climate neutrality by 2050,” he said.
He pointed out that the region’s first green bond issuance was announced in January, which witnessed an increase in demand by international investors by 1.8 times.
Thabet said: “As we look to the future, I am confident in our ability to continue to create value and support the transformation of the energy sector, as well as our focus on achieving further growth, continuous improvement and capacity building in Abu Dhabi and beyond.”