Abu Dhabi National Energy Company (Taqa), one of the largest listed integrated utilities in the region, has reported a net income of AED2.9 billion ($789 million) for the first half (H1) of the year, an increase of AED2.4 billion.

The growth was due to a significantly higher contribution from the Oil & Gas segment and the fact that Q1 2020 was reduced by an AED1.5  billion post-tax impairment charge, a company statement said.

Taqa delivered a strong performance underpinned by its stable contracted and regulated utilities businesses. Results were boosted by improved commodity prices in the oil and gas segment, reflecting a recovery from softer economic conditions in 2020.

Highlights for the period include:

Financial highlights:
•    Group revenues of AED22.2 billion, 11% higher than the prior-year period, primarily due to higher commodity prices within the Oil & Gas segment.
•    EBITDA was AED9.9 billion, up 19%, mainly reflecting higher revenues and income from associates, partially offset by higher expenses.
•    Capital expenditure was AED2.0 billion, 3% lower than prior year.
•    Strong free cash flows of AED7.4  billion, allowing for the full repayment of corporate revolving credit facilities.

Operational highlights:
•    Transmission network availability for power and water of 98.2% marginally lower versus the prior-year period.
•    Generation global technical availability of 92.6% was marginally lower compared to the prior period, mainly due to planned outages within the international generation assets.
•    Oil & Gas average production volumes increased to124.2mboepd, driven by higher production in Europe, in particular the United Kingdom.

Upon approving the period’s financial results, Taqa’s Board of Directors also declared an interim cash dividend of AED618 million (0.55 fils per share). This will be the second quarterly dividend payment planned for the financial year of 2021, in line with the company’s dividend policy.

Jasim Husain Thabet, Taqa’s Group Chief Executive Officer and Managing Director, commented: “Taqa Group’s strong financial performance for the first half of the year demonstrates our strength and scale as a fully integrated utilities company with a global footprint and a diverse portfolio of operations. Taqa has made strong progress on our commitment to stakeholders for 2021.”

“We have delivered two interim dividend payments, refinanced maturing debt at record-low rates, broken ground on what will be the world’s largest single-site solar project, unveiled a 10-year growth strategy and recently signed two MoUs for the development of green hydrogen.

“Against the backdrop of favourable market conditions, we continue to adopt a prudent financial policy, which saw us fully repay our corporate credit facilities this quarter and increase available liquidity. We also continue to focus on achieving operational efficiencies within our utilities business and progressing our growth strategy to become a low carbon power and water champion,” he added. – TradeArabia News Service