Abu Dhabi National Energy Company (TAQA) Investor Presentation summary

Business overview and strategy

• Operates as a leading integrated utility with a strong presence in the UAE and a global footprint across 23 countries, focusing on power generation, transmission, distribution, and oil & gas assets.

• Gross power generation capacity stands at 51.9 GW, with 1,250 MIGD water desalination capacity and extensive water and electricity networks.

• 2030 strategy targets significant growth in renewable energy, aiming for renewables to exceed conventional capacity and two-thirds of water generation to use reverse osmosis technology.

• Over AED 75 billion in capex planned by 2030, with more than 80% allocated to energy transition activities and expansion of T&D business, including international opportunities.

• Maintains exclusive rights to a minimum 40% stake in all EWEC generation projects in Abu Dhabi until 2030.

Financial performance and stability

• 9M 2024 revenue reached $11.4bn, up 6% YoY, with EBITDA at $4.6bn, up 9% YoY, and a 41% average EBITDA margin (FY 2021-2023).

• Free cash flow to EBITDA ratio at 17% for 9M 2024, reflecting strong cash generation.

• Over 85% of EBITDA is derived from regulated and contracted assets, ensuring predictable and secure cash flows.

• Maintains a robust balance sheet with total debt of AED 60.6bn and ample liquidity, though leverage increased slightly due to higher capex and investments.

• Dividend policy combines fixed quarterly dividends from utilities and variable year-end payouts from oil & gas, with defined increases through 2025.

ESG integration and sustainability

• ESG is embedded in strategy, with a commitment to net-zero Scope 1 & 2 emissions by 2050 and a 25% group-wide reduction by 2030 (33% in UAE, baseline 2019).

• Achieved an 11% YoY reduction in Scope 1 & 2 GHG emissions and a 13% reduction in Scope 3 emissions since 2019.

• Significant progress in health & safety, diversity, and community investment, including zero fatalities and a 4x increase in community investments in 2023.

• Recognized by major ESG rating agencies, with upgrades from MSCI and CDP, and accolades such as the Global Energy Transition Award 2024.

• Over AED 50 billion of planned capex is eligible for sustainable finance, and a $1 billion green bond was issued.