Abu Dhabi utility giant TAQA ramps up spending despite lower Q1 revenue

Abu Dhabi: Abu Dhabi utility major TAQA reported a net profit of Dh2.1 billion for the first quarter of 2026, as the company accelerated investments in UAE power, water and transmission infrastructure despite lower revenues.

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The company said revenues for the three months to March 31 fell to Dh13.7 billion from Dh14.1 billion a year earlier, mainly because of lower sales volumes in its oil and gas business. However, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 5.2 per cent year-on-year to Dh5.5 billion.

TAQA increased capital expenditure sharply during the quarter, spending Dh3.2 billion — up 45.5 per cent from the same period last year — as it pushed ahead with major projects linked to electricity, water and transmission networks.

The Abu Dhabi-based company said its regulated utilities business and long-term supply contracts helped support earnings during a period marked by regional tensions and market uncertainty.

Free cash flow remained stable at Dh4.8 billion, with stronger operating cash flow offsetting higher spending on infrastructure projects.

TAQA also said its board has approved a Q1 interim dividend of 0.8 fils per share, totalling Dh899 million.

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Q1 investments

During the quarter, TAQA said it and its partners completed a $870.75 million green bond issuance linked to the refinancing of the Al Dhafra Solar Photovoltaic Independent Power Plant in Abu Dhabi. The refinancing involved TAQA, EWEC, Masdar, EDF Power Solutions and Jinko Power.

TAQA also signed a 27-year utilities purchase agreement with ADNOC to supply utilities to the TA’ZIZ Industrial Chemicals Zone in Ruwais.

In Ras Al Khaimah, TAQA Water Solutions partnered with Etihad Water and Electricity and Saur International to develop what will become the emirate’s largest wastewater treatment plant. The facility will have a capacity of 60,000 cubic metres per day and is expected to serve up to 300,000 people.

Internationally, TAQA-backed renewable energy company Masdar secured contracts in the UK alongside RWE for 3 gigawatts of offshore wind capacity under the Dogger Bank South projects.

TAQA shareholders also approved a new dividend policy for 2026-2028, maintaining fixed and variable dividend components. The board approved an interim dividend of 0.8 fils per share for the first quarter, amounting to Dh899 million.

A new board of directors was also elected during the quarter, with H.E. Jassem Mohammed Bu Ataba Al Zaabi appointed chairman.

Jasim Husain Thabet, Group Chief Executive Officer and Managing Director of TAQA, said the company maintained stable operations during the quarter despite external pressures.

“Backed by stable earnings from our regulated utilities businesses and long-term supply contracts, we continued to invest with discipline in our long-term growth at home and internationally,” he said.