Abu Dhabi National Energy Company (TAQA) reported net income of AED 2.8 billion highlighting TAQA’s enhanced financial strength following the transfer of assets from Abu Dhabi Power Corporation (ADPower) to TAQA in July 2020.
TAQA's net income decreased to AED 2.8 billion, which reflected a significantly lower contribution from the Oil and Gas segment that was impacted by a AED 1.5 billion post-tax impairment charge taken in Q1 2020. While, capital expenditure was AED 4 billion, a decrease of 19 percent primarily due to lower spending in the Oil and Gas segment.
In statement, TAQA highlighted that 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.
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."