DUBAI: The IPO and listing of ADNOC Gas is sure to benefit Abu Dhabi utility giant Taqa in its Q1-23 profits. TAQA acquired a 5% stake in the former for a one-time 5% gain.
Based on the dividend policy announced by ADNOC Gas, Taqa could receive dividends of AED 298 million in 2023 and AED 611 million in 2024.
At the same time, the planning of corporate taxation in the UAE also appears in the company’s finances. Taqa said there was a one-time deferred income tax liability of AED 1.2 billion related to the introduction of CT.
Overall, the ADX-listed entity posted net income of Dh11.6 billion in the first three months – an increase of Dh9.6 billion. Excluding these one-off charges, net income would have totaled AED 1.9 billion, unchanged from the previous year.
As part of its new quarterly dividend policy, Taqa’s Board of Directors has declared an annual first-ever interim cash dividend of 0.65 fils (approximately AED731 million) per share. The new dividend policy for 2023-25 is based on a mix of fixed and variable dividends “to provide attractive returns to shareholders and in line with our evolving business model”.
Jasim Husain Thabet, CEO and Managing Director of the Taqa Group, said: “The Taqa Group delivered positive results in the first quarter of 2023, with significantly higher net income from our new stake in ADNOC Gas. Progress in growth strategy and solid financial performance. “
The company is also exploring new channels and is preparing to invest in a UK renewable energy companies.
There is also local investment.
“Earlier this year, we expanded our stake in Taweelah B IWPP and further strengthened our capabilities by expanding into plant operations and maintenance, a key growth area of our business,” Thabet said. “We have worked with Engie to develop the Mirfa 2 reverse osmosis unit which will provide 120 MIGD of desalinated water.
“In line with our commitment, this plant is another important step in the expansion of energy-efficient RO (reverse osmosis) technology across our desalination fleet.”
Group revenue in Q1-23 rose 6% to AED 13.1 billion, driven by higher pass-through bulk supply tariffs and transmission usage of systems within the transmission and distribution sector. Capital expenditure was 26% higher at AED 1.1 billion.
debt and cash flow
Total debt stood at AED59.8 billion, down from AED61.7 billion at the end of last year. Free cash flow generated was 31 percent higher at AED4.3 billion, “despite higher capital expenditures”.
Fixed and Variable Dividends
Under the new payout structure, a fixed dividend of 3.25 fils per share in 2023, 3.50 fils per share in 2024 and 3.75 fils per share in 2025 will be paid quarterly. The variable dividend component will be paid annually and based on a discretionary percentage of the annual net profit of the O&G business.