Abu Dhabi National Energy Company (TAQA) Q2 2025 earnings summary

Executive summary

• Group revenues rose 5% year on year to EUR 14.2 billion (AED 28,428 million), led by strong transmission, distribution, and water solutions, offset by a decline in oil and gas revenue.

• EBITDA declined 15% year on year to EUR 5 billion, and net income fell 33% to EUR 1.6 billion, mainly due to timing of ADNOC Gas dividend, oil and gas decommissioning, and Xlinks impairment.

• Net profit attributable to equity holders was AED 3,710 million, down from AED 4,622 million, reflecting lower oil and gas contributions and higher finance costs.

• Major strategic acquisitions included Transmission Investment in the UK and consolidation of TAQA Water Solutions, expanding the international and water solutions footprint.

• Total comprehensive income for the period was AED 4,311 million, supported by positive foreign currency translation effects.

Financial highlights

• Transmission and distribution revenues increased 14% year on year to AED 18,724 million, while oil and gas revenues dropped 41% to AED 2,314 million.

• Tata Water Solutions posted 6% revenue growth and 3% EBITDA growth year on year.

• Free cash flow for Q2 was EUR 2.2 billion; H1 2025 free cash flow rose 62% year on year.

• Capital expenditure increased 28% year on year to EUR 3 billion, with commitments rising to AED 20,172 million, focused on utilities expansion.

• Interim and final dividends totaling AED 3,206 million were paid in H1 2025.

Outlook and guidance

• Board proposed an interim dividend of EUR 0.75 per share for Q2 2025, in line with policy.

• Variable payout for oil and gas to be determined at 2026 AGM; new dividend policy for 2026-2029 under consideration.

• Management expects to meet transitional safe harbour relief for Pillar II income taxes and does not anticipate significant exposure in 2025.

• Seasonality expected to drive higher power and water revenues in Q3, with oil and gas potentially stronger in Q4.

• Continued focus on expanding utilities footprint and supporting energy transition.