TAQA Group’s Profit Falls 1.5% to $572 Million in First Quarter Due to Changing Oil Prices and Lower Production

BY THE ARAB TODAY May 16, 2025

TAQA Group’s Profit Falls 1.5% to $572 Million in First Quarter Due to Changing Oil Prices and Lower Production
TAQA Group's Profit Falls 1.5% to $572 Million in First Quarter Due to Changing Oil Prices and Lower Production

TAQA Group’s Profit Falls 1.5% to $572 Million in First Quarter Due to Changing Oil Prices and Lower Production

Abu Dhabi National Energy Company (TAQA Group), a utility company in the UAE, said its net income for the first quarter dropped by 1.5% compared to last year, to $571.7 million (AED 2.1 billion), because of unstable oil prices and less production.

TAQA’s First Quarter (Q1) 2025 Performance

In the first quarter of 2025, TAQA’s total revenue rose by 3.8% compared to the same time last year, reaching $3.9 billion (AED 14.2 billion). This increase was mainly due to higher costs passed through to customers in the transmission and distribution (T&D) business.

However, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped by 6.7%, down to $1.4 billion (AED 5.3 billion).

Performance by Business Segment

  • Transmission & Distribution: Earned $2.5 billion (AED 9.1 billion) in revenue, $653.4 million (AED 2.4 billion) in EBITDA, and $381.2 million (AED 1.4 billion) in net profit.

  • Power Generation: Earned $790 million (AED 2.9 billion) in revenue, $462.9 million (AED 1.7 billion) in EBITDA, and $64.8 million (AED 238 million) in net profit.

  • Water Solutions: Earned $173.2 million (AED 636 million) in revenue, $108.1 million (AED 397 million) in EBITDA, and $45.5 million (AED 167 million) in net profit.

  • Oil & Gas: Earned $408.4 million (AED 1.5 billion) in revenue, $148.7 million (AED 546 million) in EBITDA, and $94.5 million (AED 347 million) in net profit.

TAQA’s board approved a dividend of $0.2 (0.75 fils) per share for the first quarter.

TAQA is ranked 8th on Forbes Middle East’s list of the Top 100 Listed Companies for 2024.

What the CEO Said

Jasim Husain Thabet, TAQA’s CEO and Managing Director, said the results show the strength of their core utilities business and steady progress with their growth plans. He also said that TAQA achieved good revenue growth and is well-prepared for the rest of 2025. Thabet is ranked 19th on Forbes Middle East’s Top CEOs list for 2024.

Key Developments

  • TAQA, through its ownership in Masdar, expanded its renewable energy portfolio.

    • Masdar bought a 243 MW solar project in Spain through its Saeta Yield platform.

    • It also agreed to buy nearly 50% of four other solar projects in Spain (totaling 446 MW), pending approval.

  • In Abu Dhabi, Masdar is working on the world’s first large-scale renewable project that runs 24/7. It will combine 5.2 GW of solar power and 19 GWh of battery storage to produce 1 GW of clean energy continuously.

  • TAQA Transmission grew internationally by acquiring Transmission Investment (TI), a UK company that works on offshore power connections and undersea cables.

Major Investment

In April, TAQA and the Emirates Water and Electricity Company (EWEC) signed an agreement for a new 1 GW power plant in Al Dhafra. This project, fully owned by TAQA, will provide flexible, efficient power and support digital industries. It also includes investments in new grid infrastructure.

All these projects are expected to bring in around $9.8 billion (AED 36 billion) in investments.

Published: 16th May 2025

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