ABU DHABI – Abu Dhabi National Energy, TAQA, has announced its audited financial statements for the year ended 31st December 2018, on Abu Dhabi Stock Exchange, ADX, after obtaining the approval of its Board of Directors.
The Company reported profit attributable to equity holders of the parent of AED398 million, an increase of 149 percent year-on-year. Revenues also grew by 6 percent in 2018 to AED17.7 billion and EBITDA grew by 6 percent to AED9.7 billion, mainly driven by an increase in oil and liquid prices in 2018.
Free cash-flow generation remained strong at AED7.1 billion despite higher capital expenditures, which increased from AED1.3 billion in 2017 to AED1.7 billion in 2018. TAQA’s capex was completely self-funded by cash generated from the Company’s operations and was focused on sustaining and developing its power & water and oil & gas assets, positioning the company to leverage future growth opportunities.
The Company reduced its total debt by AED4.0 billion, and reduced interest paid by AED163 million during 2018. The robust financial performance has resulted in improved leverage ratios where Net Debt-to-EBITDA multiple improved to 6.5 from 7.3 the year before.
TAQA also reported a strong liquidity position of AED13.1 billion, with cash and cash equivalents of AED 3.4 billion and undrawn credit facilities of AED 9.7 billion, giving the company flexibility to address opportunities and challenges as they arise.
Commenting on the results, TAQA’s Chairman, Saeed Mubarak Al-Hajeri, said, “Despite challenging business and economic conditions, TAQA’s financial and operational performance remained impressive throughout the year. We continued to define and implement a growth strategy that took into account emerging challenges while also capitalizing on the opportunities offered by the evolving power, water, oil and gas industries.”
Saeed Hamad Al Dhaheri, CEO of TAQA commented on the performance and said, “In a year that businesses confronted challenges emerging from the global energy transition, TAQA has delivered strong financial and operational performance in 2018 with profits up year-on-year and revenue increasing by approximately AED1.0 billion. In 2018, we successfully achieved a debt reduction of AED 4.0 billion, which was the result of a robust cost rationalization exercise and operational improvements executed across the organisation.”