Abu Dhabi National Energy Company (TAQA) Q4 2024 earnings summary

Executive summary

• Revenue grew 6.7% to AED 55,162 million in 2024, driven by transmission, distribution, and the consolidation of TAQA Water Solutions.

• Clean EBITDA increased 6% year-over-year, while reported EBITDA declined 31% due to a large one-off gain in 2023.

• Net profit attributable to equity holders rose 1% on a clean basis to AED 7,068 million, but fell 58% on a reported basis due to the absence of a prior-year one-off gain.

• Major investments included AED 9.2 billion in CapEx, AED 8 billion in Masdar, and the acquisition of TAQA Water Solutions, supporting growth and M&A activity.

• The Board proposed a full-year dividend of 4.2 fils per share, up 6% from 2023, subject to approval.

Financial highlights

• Revenue reached AED 55,162 million, up 6.7% year-over-year, led by transmission, distribution, and TAQA Water Solutions.

• Clean EBITDA rose 6% year-over-year; reported EBITDA declined 31% due to a 2023 one-off gain.

• Net income (TAQA share) was AED 7,068 million, up 1.1% year-over-year on an adjusted basis; reported net income down 58%.

• Free cash flow dropped 81.3% to AED 2,608 million due to higher capex and M&A.

• Total debt increased 4% to AED 64.1 billion, mainly from higher CapEx and M&A.

Outlook and guidance

• Confident in achieving 2030 targets: 150 GW gross and 50 GW net generation capacity, with renewables exceeding conventional sources.

• CapEx and investments expected to remain elevated to support growth ambitions, with AED 75 billion planned through 2030.

• Effective tax rate expected to rise in 2025 due to UAE and global Pillar II tax implementation; impact not yet quantifiable.

• Dividend policy includes fixed and variable components, with variable based on oil and gas profits.

• Focus on optimizing portfolio, decarbonization, and international growth.