Abu Dhabi National Energy Company, known as Taqa, more than doubled its yearly net profit in 2023, as a result of higher tariffs and strong demand for its transmission and distribution services.
The company’s net profit for 2023 reached Dh16.7 billion. The Dh8.6 billion growth was mainly driven by a one-off Dh10.8 billion gain recognised on its acquisition of a 5% shareholding in ADNOC Gas. This was in part offset by a one-off Dh1.1 billion deferred tax liability associated with the introduction of UAE corporate income tax.
If these two one-off items are excluded, the company’s net profit would amount to Dh7 billion, 13% lower than the year prior, the company stated in a regulatory filing.
The company, one of the largest integrated firms in the Europe, Middle East and Africa region, said its total revenues for the year amounted to Dh 51.7 billion, an increase of 3% compared to the 2022 results.
Taqa’s revenue from power transmission and water distribution jumped by about 19% to nearly Dh31 billion in 2023, the company reported, while its revenue from the oil and gas business fell to Dh8.1 billion, from Dh10.13 billion in 2022.
“In 2023, Taqa remained unwavering in its commitment to creating long-term shareholder value … with a robust performance across our utilities business,” said Jasim Thabet, Taqa’s company’s group chief executive and managing director.
Tata has also updated its 2030 targets, pledging to make a Dh75 billion investment into power and water capacity expansion and UAE-based transmission and distribution networks by the end of the decade.
In addition to ADNOC, Taqa, is also a shareholder in Masdar and Mubadala.
In light of the results, the company’s board has proposed to distribute a final cash dividend for 2023 of 2.00 fils/share, including a variable dividend of 0.7 fils/share.