Robust operations across its utilities business and bolstered by the contributions from TAQA Water Solutions (formerly SWS Holding) saw Abu Dhabi National Energy Company (TAQA), post full-year revenue of AED 55.2 billion ($15 billion) in 2024, up 6.7 per cent from last year.
One of the largest listed integrated utilities in Europe, the Middle East, and Africa, TAQA’s EBITDA was AED 21.4 billion ($5.83 billion), up 5.9 per cent. This excludes the AED 10.8 billion ($2.94 billion) related to the acquisition of a 5 per cent stake in ADNOC Gas. EBITDA saw a decrease of 31 per cent if the one-off item is included.
The group’s net income was AED 7.1 billion ($1.93 billion), up 1.5 per cent excluding one-off item related to the ADNOC Gas stake and an AED 1.1 billion ($300 million) deferred tax charge due to the introduction of UAE corporate tax. Including these items, net income recorded an AED 9.6 billion ($2.61 billion) year-on-year decline.
Construction progress in the Mirfa 2 Reverse Osmosis (M2 RO) and Shuweihat 4 Reverse Osmosis (S4 RO) desalination projects drove up the company’s capital expenditure by 63.8 per cent to AED 9.2 billion ($2.5 billion).
Mohamed Hassan Alsuwaidi, TAQA’s Chairman, commented: “2024 was a pivotal year for TAQA as it further strengthened its position as a global leader in low-carbon power and water both in the UAE and abroad. TAQA’s strong financial results for the year, as well as the credit rating of AA by Fitch, which highlights the resilience of its balance sheet, are testimony to this.
“Throughout 2024, TAQA continued its growth, marked by key milestones such as the successful closing of the TAQA Water Solutions acquisition as well as strategic investments in international power generation projects.”
TAQA’s strategic project success
Internationally, the firm reached financial closure for two of its projects in Saudi Arabia, the Juranah Strategic Water Reservoir in Makkah region and the Najim Cogeneration Plant in Jubail, and signed project agreements with partners to develop two high-efficiency gas power plants in Rumah and Nairyah, with a combined capacity of 3.6 GW.
Through Masdar, TAQA took significant steps toward achieving their 2030 target of 100 GW of global renewable capacity, with several key acquisitions, including Terra-Gen in the US, Terna Energy and Saeta in Europe as well as a significant share in Endesa’s renewables portfolio in Spain.
Jasim Husain Thabet, Group CEO and Managing Director of TAQA, added: “TAQA’s strong financial performance in 2024 was driven by robust results across our businesses. The year was a milestone for TAQA, highlighted by the merger of Abu Dhabi Distribution Company and Al Ain Distribution Company under the new TAQA Distribution brand, alongside the rebranding of our other operating entities in the UAE. This streamlining of our operations strengthens our customer service offering across the Emirate of Abu Dhabi, setting the stage for future growth.
“On the water side, we also expanded our capabilities in water treatment and reuse through the integration of TAQA Water Solutions, adding AED 17.5 billion ($4.77 billion) to our regulated asset value.
“As we look ahead, TAQA remains focused on delivering its 2030 strategy by investing in critical infrastructure, driving innovation, and expanding internationally.”
Free cash flow generation amounted to AED 2.6 billion ($700 million), down from AED 13.9 billion ($3.78 billion) in 2023, 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 was AED 64.1 billion ($17.45 billion), up from AED 61.7 billion ($16.8 billion) at the end of 2023, due to the issuance of an aggregate AED 6.4 billion ($1.75 billion) in 7-year and 12-year dual-tranche corporate bonds; consolidation of AED 1.5 billion ($410 million) in project debt from the acquisition of SWS Holding and AED 1.4 billion ($380 million) for the construction of the M2 RO and S4 RO desalination projects.
The company repaid AED 3.5 billion ($950 million) in matured corporate bonds, AED 2.9 billion ($790 million) in scheduled loan repayments and AED 500 million ($136.15 million) of other minor movements.
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