Abu Dhabi National Energy Company, one of the largest listed integrated utilities in the region, has reported pro-forma consolidated financial results for the year ended December 31, 2020. The results incorporate the full year performance of the substantial assets transferred by Abu Dhabi Power Corporation (ADPower) to TAQA on July 1, 2020.
TAQA continued to deliver a resilient performance amid unprecedented economic conditions. The results were underpinned by stable contracted and regulated utilities businesses, and included the following highlights:
• Group revenues of AED 41.2 billion, 6% lower than the prior-year period, primarily due to lower commodity prices and production volumes within the Oil & Gas segment.
• EBITDA was AED 16.0 billion, down 13%, reflecting lower revenues that were partially offset by lower expenses.
• Net income (TAQA-share) decreased to AED 2.8 billion, which reflected a significantly lower contribution from the Oil & Gas segment that was impacted by a AED 1.5 billion post-tax impairment charge taken in Q1 2020.
• Capital expenditure was AED 4.0 billion, a decrease of 19% primarily due to lower spending in the Oil & Gas segment.
• Generation global technical availability of 93.9% was consistent with the prior period.
• Oil & Gas average production volumes were 118.0 mboepd, a 5% decrease on delayed drilling campaigns.
• Construction is underway for low carbon power and water generation projects in the UAE with a combined capacity of 4.4 GW and 200 MIGD.
In addition to approving TAQA Group’s financial results, the Board of Directors proposed a final cash dividend of AED 1.1 billion (1.00 fils per share). Together with the AED 1.7 billion (1.50 fils per share) paid in December, this brings the total cash dividend for the year to AED 2.8 billion (2.50 fils per share) and delivers on the dividend policy recently approved by shareholders. This proposal will be submitted to the Company’s shareholders for approval at the Annual General Assembly, expected to take place on 18 March 2021 pending regulatory approvals. If approved, payment of the final cash dividend of 1.00 fils per share will take place in April 2021.
Following the Company’s Board meeting, H.E. Mohamed Hassan Al Suwaidi, TAQA’s Chairman, commented: “2020 was a year of significant market disruption caused by the COVID-19 pandemic. Yet despite this challenging context, 2020 was a year of great progress, change and achievement for TAQA. In July we successfully brought Abu Dhabi’s water and power assets under a new TAQA management team. We are now well placed to grow using our robust balance sheet, strong cash flow and our position as one of the largest fully integrated utilities companies in the EMEA region. In addition to this, we delivered on a major promise made to our shareholders to provide sustainable and attractive returns, which we are delivering through our new dividend policy. Completion of the transaction was the start of the integration work that will unlock the long-term potential of the business. We have made great progress and I look forward to building on our success during 2021.”
Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, commented: “TAQA has carved out a new place in the market during an extraordinarily tough year. These financial results demonstrate the strong platform for growth that we have created through our landmark transaction with ADPower. I am extremely proud of our employees who, in the face of the pandemic, have kept our customers supplied with the power and water that is so fundamental to all of our lives. Beyond that we have made great progress with our operational improvements and in laying foundations for our future ambitions.
Among our operational successes during 2020, we ran the business more efficiently and we also achieved some key milestones, including the financial close of two ground-breaking projects: the Fujairah F3 and the Al Dhafra Solar PV plants.
Fujairah F3, now under construction, will be the UAE’s largest independent gas-fired power plant, and the Al Dhafra project will be the world’s largest single-site plant of its kind setting a new frontier for low-cost solar power with a tariff of USD 1.32 cents/kWh (AED 4.85 fils/kWh). We have also progressed on the construction of another ground-breaking project – the world’s largest reverse osmosis desalination project at Taweelah..
As we look ahead to 2021 and beyond we will build on this progress and take the opportunities that exist to grow our footprint whilst serving the communities in which we operate.”