Abu Dhabi National Energy Company (TAQA) investor relations material

Executive summary

• Group revenue rose 4.6% year on year to AED 28,428 million, led by transmission, distribution, and water solutions, but offset by a decline in oil and gas revenue.

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

• Core utility businesses performed in line with expectations, with underlying financials healthy when excluding nonrecurring items.

• Major international expansion included the acquisition of Transmission Investment in the UK, consolidation of TAQA Water Solutions, and MOUs in Morocco for low-carbon projects.

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

Financial highlights

• Transmission and distribution revenues increased 14% year on year, while oil and gas revenues dropped 41%.

• Gross profit for the six months was AED 6,250 million, down from AED 7,056 million, mainly due to higher operating expenses and lower oil and gas revenue.

• Free cash flow remained healthy at AED 2.2 billion despite higher CapEx, though lower year on year due to working capital changes.

• Capital expenditure commitments rose to AED 20,172 million, reflecting ongoing investment in infrastructure and expansion.

• Interim and final dividends totaling AED 3,206 million were paid in the first half of 2025.

Outlook and guidance

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

• Variable payout for oil and gas to be determined at the 2026 AGM; new dividend policy to be considered for 2026–2029.

• Management confirms sufficient liquidity and resources to meet ongoing commitments and debt repayments.

• Seasonality is expected to drive higher power and water revenues in Q3, while oil and gas may see stronger results in Q4 due to winter demand in Europe and Canada.