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

Executive summary

• FY2024 revenue reached AED 55,162mn, up 6.7%; clean EBITDA rose 5.9%, driven by transmission and distribution and TAQA Water Solutions.

• Adjusted net income rose 1.1% to AED 7,068mn; reported net income fell 57.5% due to prior-year one-offs.

• CapEx reached AED 9.2bn, with AED 8bn invested in Masdar; growth investments and M&A weighed on free cash flow and leverage.

• Proposed FY2024 dividend was 4.2 fils per share, up 6%.

• MSCI ESG rating upgraded to A; Fitch rating upgraded to AA.

Financial highlights

• Clean EBITDA was AED 21,437mn, up 5.9%; reported EBITDA fell 30.9% due to prior-year one-offs.

• Free cash flow was AED 2,608mn, down 81.3% year-over-year due to higher CapEx and M&A.

• Total debt reached AED 64.1bn at December 2024, up 4% year-over-year.

• Transmission and distribution benefited from regulatory changes and tax recovery; oil and gas was affected by a 49% drop in realized gas prices.

Outlook and guidance

• 2030 targets include 150 GW gross generation capacity, 50 GW net capacity and a 65% renewables share.

• AED 75bn of CapEx planned through 2030, with over 80% directed to energy transition activities; AED 50bn eligible for sustainable finance.

• Commitment to maintain a standalone investment-grade rating and expand transmission and distribution outside the UAE.

• Dividend policy combines defined utilities payouts with variable oil and gas distributions.