Emirates energy shares rise after achieving record business results in 2022

Emirates energy shares rise after achieving record business results in 2022

The Emirati energy stock rose during trading today, Tuesday, February 14, after announcing record business results during the past year (2023), with the support of the oil and gas sector and the increase in expansion of renewable energy projects.

Abu Dhabi National Energy Company, one of the largest integrated utility companies listed in the financial markets in the region, revealed today, Tuesday, its results for the past year.

The net income of the UAE energy amounted to about 8 billion dirhams (2.14 billion dollars), an increase of 2 billion dirhams (540 million dollars) over the previous year.

The significant increase in the results of the UAE energy business in 2022 was supported by a significant additional contribution from the oil and gas sector, and a decrease in depreciation expenses, which in turn supported the growth in net profits.

Power business results

The Emirati energy company said, in a statement seen by the specialized energy platform, that its strong performance was based on the implementation of its growth strategy, supported by contracted works in the utilities sector, and the improvement in commodity prices.

The company achieved revenues of AED 50 billion ($13.61 billion), an increase of 10.3% compared to the previous year, mainly due to the rise in commodity prices in the oil and gas sector.

Adjusted EBITDA amounted to 20.8 billion dirhams, an increase of 6.7%, while capital expenditure amounted to 3.8 billion dirhams.

* The dollar is equivalent to 3.67 UAE dirhams.

Emirates energy company logo

Dividend

The Board of Directors of the Emirati Energy Group proposed the fourth and final payment of cash dividends for the fiscal year 2022 at a value of 3.3 fils per share (3.713 billion dirhams), bringing the total cash dividends distributed for the year 2022 to 5.1 fils per share (5.738 billion dirhams).

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At the end of trading today, Tuesday, TAQA share rose by 0.95%, recording 3.19 dirhams, exceeding the value of the previous close by about 2 fils, as it ended Monday’s trading at 3.17 dirhams.

The Emirati energy share achieved transactions that exceeded 8.667 million shares, with a total value estimated at 27.661 million dirhams.

source share

The Emirati Energy Company has invested huge investments amounting to 4.5 billion dirhams during the year 2022, to finance the acquisition of a stake in the Abu Dhabi Future Energy Company “Masdar”, and the project to supply electricity to the marine production operations of the Abu Dhabi National Oil Company “ADNOC”.

TAQA continued to achieve strong free cash flows during 2022, amounting to 13.8 billion dirhams, and total debt amounted to 61.7 billion dirhams, down from 65 billion dirhams at the end of 2021, which contributed to the further improvement of the group’s credit metrics.

2022 achievements

In terms of operational achievements, the availability rate in electricity and water transmission networks reached 98.6%, slightly higher than the same period last year, which was 98.4%.

The rate of technical availability of electricity generation work in Emirati energy projects around the world reached 98.1% compared to 97.3% in the previous year, as the existing plants within the UAE contributed, in particular, to this slight increase.

The average oil and gas production rose to 123.8 thousand barrels of oil equivalent per day, an increase of 1.1% compared to 2021, according to the data seen by the specialized energy platform.

Mohammed Al-Suwaidi, Chairman of the Emirati Energy Group
Mohammed Al-Suwaidi, Chairman of the Emirati Energy Group

Carbon removal

Mohammed Hassan Al Suwaidi, Chairman of the Board of Directors of the Abu Dhabi National Energy Company “TAQA”, said: “The record financial results achieved by the Emirati TAQA Group during the year 2022 reflect the progress it continues to make in its ambitious path based on seizing attractive market opportunities and investment-grade credit ratings and upgrading its rating.” According to the most prominent global indicators of environmental, social and corporate governance standards.

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He added, “Over the past year, we have continued to contribute at a steady pace to achieving the UAE’s goals related to decarbonization and advancing sustainable growth.”

He explained that as part of the tireless endeavors, the group acquired a controlling stake in the leading national company in the field of clean energy, Masdar, in an initiative that will support the achievement of its 2030 goal of producing renewable energy by 30% of electricity generation projects ahead of schedule.

He pointed out that the Emirati energy has a record of achievements, a leading position in the market, and an ambitious vision for a promising future for the utilities sector, which enables it to harness its vast resources and capabilities to achieve its strategic goals during the year 2030 and beyond.

Ambitious goals

For his part, Jassim Hussain Thabet, Group CEO and Managing Director of Abu Dhabi National Energy Company “TAQA”, said: “During 2022, the group maintained its strategic direction, and succeeded in achieving its goals aimed at achieving growth, and those related to environmental, social and governance standards, which reflects progress.” The remarkable achievement of the group in terms of its goals and its constant commitment to fulfilling its commitments.

The group continued its pursuit of its strategic goals by acquiring a stake in Masdar, which aspires to become one of the largest clean energy companies in the world.

He added, “We took a step by entering a new market, Uzbekistan, and completed a deal to develop one of our most prominent projects to remove carbon from ADNOC’s marine production operations, and announced our intention to acquire the power plants of Emirates Global Aluminum and connect them to the Abu Dhabi electricity grid.”

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He pointed out that the last two projects “are an example of our relentless endeavors to contribute to the decarbonization of sectors where it is difficult to reduce emissions, which was also embodied by our joining the International Renewable Energy Agency (IRENA) coalition to decarbonize the industrial sector.”

He continued, “This strategic direction is reflected in our strong financial results for the year 2022, which allow us to continue striving to achieve our ambitious goals, while ensuring high returns at the same time.”




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