Taqa proposes $1.4bn in dividend payments for 2021 amid strong performance

The company will hold its annual general meeting on March 15 to secure shareholders' approval on dividends

Abu Dhabi's Taqa has operations in a number of countries including the UAE, Canada, the UK and the US. Victor Besa / The National

Abu Dhabi National Energy Company, known as Taqa, is recommending that its shareholders approve a special dividend payment of Dh2.2 billion ($598.9m), in addition to the final payment of Dh1.2bn as the company's net profit doubled last year amid higher oil prices.

This comes in addition to the Dh1.9bn already paid in quarterly dividends, Taqa said in a statement on Wednesday to the Abu Dhabi Securities Exchange, where its shares are traded. The payout is pending shareholders' approval at the company’s annual general meeting, which is scheduled for March 15.

“Altogether it means that the total dividend payments to shareholders will be Dh5.3bn for the financial year 2021. This total exceeds expected payment outlined in the company’s dividend policy with the increase reflecting the strong financial performance in 2021.”

The move comes as Taqa posted strong financial results last year amid higher oil prices. The company’s profit in 2021 more than doubled to Dh6bn as revenue grew 11 per cent to Dh46bn.

“Taqa’s proposed dividend payment, totalling Dh5.3bn for the full year, speaks to the financial strength of the company and robust performance for 2021,” Jasim Thabet, Taqa’s group chief executive and managing director said. “We continue to meet our dividend policy and our strategic commitments while maintaining a strong balance sheet.”

Taqa has operations in a number of countries including the UAE, Canada, Ghana, India, Iraq, Morocco, Oman, the Netherlands, Saudi Arabia, the UK and US. The company has significant investments in power and water generation as well as in the oil and gas sector.

The company is also set to become a shareholder in Abu Dhabi’s clean energy company Masdar, along with Adnoc and Mubadala Investment Company.

It will take a 43 per cent stake in Masdar’s renewable energy business with Mubadala retaining a 33 per cent share and Adnoc holding a 24 per cent stake after the completion of the transaction in the coming months.

Meanwhile, Taqa will have a 24 per cent stake, Adnoc will hold 43 per cent and Mubadala will have 33 per cent in Masdar’s green hydrogen business.