Abu Dhabi National Energy Company (TAQA) posted Q1 2023 net profit of 11.6 billion dirhams ($3.2 billion) versus AED 1.89 billion for the year-ago period mainly driven by a one-off gain of AED10.78 billion on the transfer of a 5% stake in ADNOC Gas.

Net income excluding these one-off items was AED 1.9 billion, in line with the prior year, and beating analysts’ mean estimate of AED 1.58 billion, according to data compiled by Refinitiv's Eikon.

Group revenues hit AED 13.1 billion, 6% higher year-on-year (YoY), the energy company said in a statement on the Abu Dhabi Securities Exchange on Monday.

Capital expenditure was AED 1.1 billion, 26% higher than prior year, while free cash flow generation was AED 4.3 billion, 31% higher YoY, despite the higher capital expenditure.

Revenue from oil and gas was AED2.49 billion, down from AED 3.07 billion as production volumes fell nearly 6%. However, revenues from power and water, and their transmission and distribution rose to AED 3.14 billion and AED 7.49 billion, respectively.

TAQA acquired a 5% stake in ADNOC Gas from ADNOC, without any cash consideration paid for this stake. Based on ADNOC Gas' announced dividend policy, TAQA expects to receive dividends worth AED 298 million in 2023, rising to AED 611 million by 2024.

(Reporting by Brinda Darasha; editing by Anoop Menon)
brinda.darasha@lseg.com