TAQA Arabia reports 65% net profit growth in Q1 2026

TAQA Arabia reported a 65% year-on-year (YoY) increase in net profit to EGP 225 million in the first quarter (Q1) of 2026, while consolidated revenues rose 33% to EGP 7.128 billion, as per an emailed financial release.

The Egypt-based energy infrastructure company also reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of EGP 550 million for the quarter ended March 2026, up 13% compared to the same period last year.

The company said revenue growth was supported by higher activity across its petroleum, gas, power, and water businesses.

The petroleum division generated EGP 4.546 billion in revenues during the quarter, accounting for approximately 64% of consolidated revenues. Segment revenues increased 37% year-on-year, supported by a 1% increase in sales volumes despite softer market demand following recent price adjustments. The division also benefited from the contribution of three fuel stations added during the past year, bringing the network to 72 stations, in addition to higher throughput volumes handled for competitors through TAQA Arabia's terminal facilities and the impact of price increases on refined products.

The power division reported revenues of EGP 930.5 million, up 12% YoY. The increase was driven by a 10% rise in power distribution volumes across commercial, industrial, tourism, and residential customers. The company said government electricity tariffs announced for implementation in April 2026 are expected to affect the division's financial results in the coming quarters.

The gas division recorded revenues of EGP 1.599 billion, representing a 31% increase from the prior-year period. The company attributed the increase to infrastructure deployment in social housing projects, network expansion under the Hayat Karima initiative, and higher consumption levels across its hotel customers in Hurghada.

Residential connections also exceeded budgeted levels, with the addition of 7,671 more customers than planned during the quarter.

The division's results were also supported by the performance of the CNG Egypt business, which reported a 14.3% increase in volumes, alongside the impact of price adjustments implemented in October 2025 and March 2026.

Outside Egypt, the company's CNG Africa operations reported a 39% increase in volumes YoY and generated revenues of EGP 90 million, reflecting a 27% increase compared to the same period last year.

The water division reported a 155.7% increase in treated water volumes YoY. Average daily operating capacity reached 38,850 cubic meters by the end of the quarter after the addition of more than 20,000 cubic meters of desalination capacity over the previous 12 months.

According to the company, the increase was linked to the commissioning of utility assets and preparations for seasonal demand.

At the EBITDA level, TAQA Arabia said results were supported by a 10% increase in power distribution volumes, a 15.5% increase in domestic and regional compressed natural gas (CNG) volumes, and higher treated water output.

The company also cited the contribution of newly commissioned assets, including three petroleum stations, six CNG stations across Egypt, Mozambique, and Tanzania, and additional desalination capacity added during the past year.

According to TAQA Arabia, regional operations continued to contribute to earnings, particularly through its CNG Africa business.

The company said margins were supported by operational efficiencies, business mix changes, and the impact of domestic price adjustments introduced in late 2025 and early 2026. It also expects recently announced government utility tariffs, which took effect in April 2026, to contribute to future results.

Net profit increased at a faster pace than EBITDA due to an improvement in financing results, which shifted to a net gain during the quarter. TAQA Arabia attributed this to lower interest rates, including an 8% reduction in benchmark rates, as well as higher interest income.

TAQA Arabia serves more than 1.8 million residential, industrial, tourism, and commercial customers across 50 Egyptian cities. The company operates natural gas transmission and distribution networks, conventional and renewable power generation and distribution assets, water treatment and desalination facilities, and petroleum products marketing operations.

Through its subsidiary Master Gas, TAQA Arabia operates compressed natural gas stations and conversion centers and provides Mobile CNG services to customers located outside the natural gas grid in Egypt and other regional markets.

The company said its infrastructure expansion, regional operations, and regulatory developments are expected to contribute to future performance.