Abu Dhabi National Energy Company

1. Company Overview & Earnings Context

Abu Dhabi National Energy Company PJSC (TAQA) reported resilient Q1 2026 performance supported by stable regulated utility earnings, higher contributions from joint ventures and associates, and continued infrastructure expansion across power, water, and transmission networks. The Group operates across power generation, transmission, distribution, water solutions, and oil & gas operations in the UAE and international markets.

Management highlighted that TAQA maintained operational continuity and reliability across its utilities platform despite regional geopolitical tensions and market uncertainty during the quarter.

2. Financial Performance Snapshot

• Revenue: AED 13.73B

• EBITDA: AED 5.53B

• Gross profit: AED 3.20B

• Profit before tax: AED 2.56B

• Net profit attributable to shareholders: AED 2.09B

• Basic & diluted EPS: AED 0.02

Compared to Q1 2025:

• Revenue declined slightly from AED 14.11B to AED 13.73B

• EBITDA increased from AED 5.25B to AED 5.53B

• Net profit attributable to shareholders remained broadly stable at AED 2.09B versus AED 2.08B in Q1 2025

Segment profit contribution:

• Transmission: AED 945M

• Distribution: AED 594M

• Generation: AED 360M

• Oil & Gas: AED 200M

• Water Solutions: AED 192M

3. Operational Highlights & Key Metrics

• Total assets: AED 227.3B

• Total equity: AED 105.5B

• Cash & cash equivalents: AED 14.14B

• Total debt: AED 71.22B

• Capital expenditure: AED 3.18B

• Free cash flow: AED 4.84B

Operational highlights:

• Generation commercial availability: 94.3%

• Transmission network availability: 98.4%

• Water Solutions asset availability: 97.2%

• Oil & Gas production: 94.6 mboe/d

Regulated Asset Value (RAV):

• Transmission: AED 45.44B

• Distribution: AED 35.77B

• Water Solutions: AED 18.62B

4. Key Performance Drivers

• Stable regulated utility earnings continued supporting overall profitability

• Higher contributions from associates and joint ventures positively impacted EBITDA growth

• Transmission and Distribution businesses remained the largest profit contributors

• Lower Oil & Gas revenue due to weaker volumes partially impacted topline performance

• Accelerated infrastructure investments increased capital expenditure during the quarter

Strategic developments included:

• Completion of USD 870.75M green bond refinancing for Al Dhafra Solar PV project

• 27-year utilities agreement signed with ADNOC for TA’ZIZ Industrial Chemicals Zone

• New wastewater treatment project agreement signed in Ras Al Khaimah

• Masdar and RWE secured Contracts for Difference for 3 GW offshore wind projects in the UK

5. Outlook & Forward Guidance

• Continued focus on expanding regulated power, water, and transmission infrastructure

• Ongoing investment into renewable energy and sustainable utility projects remains a strategic priority

• TAQA continues strengthening international renewable energy exposure through Masdar

• Management remains focused on long-term infrastructure growth, operational reliability, and stable shareholder returns

• Shareholders approved an updated 2026–2028 dividend policy maintaining fixed and variable dividend components

The company also continues progressing the acquisition of GS Inima, a global water treatment and desalination company, subject to regulatory approvals.

6. 🧾 Investor Takeaway

TAQA delivered resilient Q1 2026 performance supported by stable regulated utility earnings, strong infrastructure cash flows, growing renewable energy exposure, and continued investment across power, water, and transmission networks despite softer Oil & Gas revenues and elevated regional uncertainty.