Abu Dhabi National Energy Company, better known as Taqa, reported a 5 per cent rise in its second-quarter revenue, boosted by higher demand in its transmission and distribution business.
Taqa’s revenue grew to Dh13.67 billion ($3.72 billion) in the three months ending on June 30, the company said on Monday in a regulatory filing to the Abu Dhabi Securities Exchange, where its shares are traded.
Net income attributable to shareholders in the second quarter fell to Dh1.92 billion ($523 million), from Dh2.31 billion in the same period a year earlier.
“The company delivered a strong and consistent financial performance, maintained its investment grade credit rating and ensured good returns for its shareholders through its dividend policy,” said Mohamed Alsuwaidi, chairman of Taqa.
"Taqa has also grown both domestically and internationally in 2023, as well as in the renewable energy sector where it has exceeded its 2030 target of having 30 per cent of its generation portfolio coming from renewable sources through the growth of Masdar."
Revenue from the company’s oil and gas unit fell nearly 13 per cent to Dh2.29 billion in the second quarter.
Brent, the benchmark for two-thirds of the world's oil, surged to about $140 a barrel following Russia's invasion of Ukraine last year.
It is currently trading at about $86 after recording seven straight weeks of gains amid tightening supply.
Taqa approved a dividend of about Dh731 million for this year, in line with the company’s new dividend policy announced in March.
The company has said its fixed dividend will amount to 3.25 fils in 2023, 3.50 fils in 2024, and 3.75 fils in 2025 – all paid quarterly, much in the same way as its previous policy.
“Taqa’s steady performance in the first six months of 2023 demonstrates the company’s firm commitment to delivering on its promises and growth agenda which is underpinned by the strength of our balance sheet," said Jasim Thabet, Taqa’s group chief executive and managing director.
"As a low carbon power and water champion, we have delivered on our growth ambitions in the first half of 2023 both inside the UAE and abroad."
Taqa's profit in the first six months of 2023 more than quadrupled to Dh13.50 billion, boosted by its purchase of a 5 per cent stake in Adnoc Gas.
In March, Adnoc raised about Dh9.1 billion from the sale of a 5 per cent stake in the gas business, making it the largest listing on the ADX.
In June, Taqa also entered into a definitive agreement to acquire Sustainable Water Solutions Holding Company (SWS Holding) for Dh1.7 billion.
The deal increases the company's regulated asset base by more than 20 per cent, with Taqa's expansion into the wastewater network and treatment business expected to boost its position as Abu Dhabi’s fully integrated utility.
In May, Taqa signed agreements with Uzbekistan to explore investment options in the Central Asian country’s power sector that could be worth more than $3 billion.