Taqa reports Dhs3.3b revenues; Emaar’s sales is Dhs3.230 billion
Taqa’s liquidity at quarter-end remained strong at Dhs11 billion, including Dhs4.6 billion in cash and cash equivalents and Dhs6.4 billion of undrawn credit facilities
Abu Dhabi National Energy Company (Taqa), announced on Thursday its earnings for the second quarter of 2020. The company’s revenues reached Dhs3.3 billion for the quarter, reflecting the COVID-19 pandemic ongoing adverse impact on energy markets.
In a statement by the company on Thursday, revenues for Taqa’s contracted power and water generation business in the UAE were unchanged on the same period last year, whilst within the international power business, revenue and costs declined reflecting lower demand.
Group EBITDA fell 27 per cent to Dhs1.8 billion, with declining revenues partially offset by lower operating expenses within both the oil and gas and power and water businesses. The group lowered operating expenses by deferring non-critical activities in response to the challenging economic environment.
Taqa’s liquidity at quarter-end remained strong at Dhs11 billion, including Dhs4.6 billion in cash and cash equivalents and Dhs6.4 billion of undrawn credit facilities. This quarter reflects financials prior to Taqa’s transaction with Abu Dhabi Power Corporation, which was completed on 1st July, 2020 and will therefore be reflected in the third quarter results.
As a result of the transaction, Taqa is now a top-10 integrated utilities leader in the EMEA region by regulated assets and one of the largest publicly listed companies in the UAE by market capitalisation. More than 85 per cent of Taqa’s revenues and EBITDA will be driven by long-term contracts or regulated tariffs, significantly increasing the company’s resilience to commodity price volatility.
“We are excited to embark on our new journey as a globally leading, fully integrated utilities champion,” said Jasim Husain Thabet, Taqa’s newly appointed Group CEO and Managing Director.
“Taqa will continue to play a leading role in the UAE’S energy market, with a range of large-scale projects in development, including the world’s largest solar photovoltaic plant, the world’s largest sea-water reverse osmosis plant, and the UAE’S largest gas-fired independent power project. As we look ahead, Taqa’s new transmission and distribution businesses will complement its expanded generation business, supporting efficient delivery of power and water to those we serve in Abu Dhabi and beyond,” he noted.
Commenting on the Company’s quarterly performance, Saeed Al Dhaheri, Deputy CEO of TAQA, said: “We remain focused on running sustainable operations across the full range of our assets, while prioritizing the health and safety of our staff. Nonetheless, our financial performance continues to be affected by the COVID-19 pandemic, which has curbed commodity prices. However, as a fully integrated utilities company, with an enlarged contracted business and significant new regulated assets, we are confident in our ability to face future challenges with resilience, financial muscle and an unwavering commitment to those we serve across our 11 countries.”
EMAAR DEVELOPMENT: Emaar Development, the leading property and lifestyle developer in the region and majority-owned by Emaar Properties, reported encouraging half-year financial results despite the challenges presented by the impact of COVID-19. The developer reported property sales of Dhs3.230 billion ($879 million) in the first half of the year and net profit of Dhs1.036 billion ($282 million).
The resilient financial performance was supported by inventory sales and a continued construction progress on sites amidst Covid-19. Alongside promising sales of these new lifestyle projects, Emaar has accumulated a healthy sales backlog of Dhs29.407 billion ($ 8.006 billion).
Mohamed Alabbar, Founder of Emaar Properties and Emaar Development said: “Emaar’s strategic approach is what propels us forward year ater year even with challenging market conditions. We will continue to innovate, enhance our services and deliver exceptional experiences by creating world-class amenities and managing our communities with utmost care.”
He added,“we have undertaken significant steps to control our cost base, reduce our operational costs and revisit our talent, while maintaining our focus on our quality services. I am confident that we are well placed to continue to deliver against our strong track record as the market recovers.”
Emaar Development remains commited to their projects’ delivery timeframes and further enhancement of existing communities. The company handed over approximately 1,000 residential units in the first half of 2020 in prime locations, including Dubai Hills Estate, Dubai Creek Harbour, Arabian Ranches and Emaar South.