Abu Dhabi National Energy Company (TAQA) reported its FY 2020 results, with net income decreasing to $680 million due to the impact of the pandemic and lower oil prices.
The company’s oil and gas segment was particularly impacted, with a $480 million post-tax impairment charge in Q1 2020. Overall net income declined by 6% compared to the previous year.
H.E. Mohamed Hassan Al Suwaidi, TAQA’s Chairman, commented: “2020 was a year of significant market disruption caused by the COVID-19 pandemic. Yet despite this challenging context, 2020 was a year of great progress, change and achievement for TAQA. In July we successfully brought Abu Dhabi’s water and power assets under a new TAQA management team. We are now well placed to grow using our robust balance sheet, strong cash flow and our position as one of the largest fully integrated utilities companies in the EMEA region. In addition to this, we delivered on a major promise made to our shareholders to provide sustainable and attractive returns, which we are delivering through our new dividend policy. Completion of the transaction was the start of the integration work that will unlock the long-term potential of the business. We have made great progress and I look forward to building on our success during 2021.”
Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, commented: “TAQA has carved out a new place in the market during an extraordinarily tough year. These financial results demonstrate the strong platform for growth that we have created through our landmark transaction with ADPower. I am extremely proud of our employees who, in the face of the pandemic, have kept our customers supplied with the power and water that is so fundamental to all of our lives. Beyond that we have made great progress with our operational improvements and in laying foundations for our future ambitions.
Among our operational successes during 2020, we ran the business more efficiently and we also achieved some key milestones, including the financial close of two ground-breaking projects: the Fujairah F3 and the Al Dhafra Solar PV plants.
Fujairah F3, now under construction, will be the UAE’s largest independent gas-fired power plant, and the Al Dhafra project will be the world’s largest single-site plant of its kind setting a new frontier for low-cost solar power with a tariff of USD 1.32 cents/kWh (AED 4.85 fils/kWh). We have also progressed on the construction of another ground-breaking project – the world’s largest reverse osmosis desalination project at Taweelah..
As we look ahead to 2021 and beyond we will build on this progress and take the opportunities that exist to grow our footprint whilst serving the communities in which we operate.”
