Flexible Growth and Strategic Expansion Drive TAQA’s Net Profits to AED 7.5 Billion in 2025 as Shift to Renewables Accelerates

Abu Dhabi | EcoPulse24

Abu Dhabi National Energy Company (TAQA) closed out 2025 with strong financial results, demonstrating its ability to balance operational stability with strategic expansion amid significant shifts in global energy markets. The company’s results underscored the resilience of its utilities business, offsetting declines in oil and gas, while accelerating investments in power, water, and transmission infrastructure.

TAQA reported revenues of AED 54.8 billion for the year ending December 31, 2025, largely in line with the previous year. Net income rose by 5.6% year-on-year to AED 7.5 billion, highlighting the group’s ability to maintain profitability despite lower commodity prices and reduced oil and gas production, particularly in the UK North Sea.

Earnings before interest, tax, depreciation, and amortization (EBITDA) stood at AED 20.7 billion, slightly down from AED 21 billion in 2024 due to non-recurring accounting charges and non-cash expenses in the power generation, water desalination, and oil and gas segments. Continuous cash flows supported the group’s long-term investment plans.

Capital expenditure jumped to AED 14.5 billion, up 48.4%, driven by accelerated infrastructure projects in electricity, water, and transmission. Major investments included the 1 GW Al Dhafra thermal power plant and initiatives to meet growing energy demand and support Abu Dhabi’s digital and AI infrastructure.

TAQA’s total power generation capacity rose to over 70 GW, up from 24 GW in 2020, with renewables now comprising around 64% of its portfolio. Over 40% of its water desalination capacity now uses high-efficiency reverse osmosis technology, enhancing operational efficiency and environmental sustainability.

Internationally, TAQA expanded through key acquisitions, including GS Inima in water desalination and Transmission Investment in the UK to enter the electricity transmission market. The company also financed gas-fired power plants in Saudi Arabia and broadened its portfolio in Morocco and Uzbekistan, diversifying assets both geographically and by sector.

Regarding shareholder returns, TAQA’s board proposed a fixed dividend of 1.5 fils per share for Q4 2025, plus a variable dividend of 0.7 fils per share for the year, totaling 4.45 fils per share for 2025, up from 4.25 fils in 2024. The board also recommended an updated dividend policy for 2026-2028, maintaining a mix of fixed and variable payouts with gradual annual growth.

EcoPulse24 Analysis:
TAQA’s 2025 results reflect a deeper phase of expansion, with growth increasingly driven by the power, water, and transmission sectors, while oil and gas play a diminishing role. The sharp rise in capital spending signals a long-term strategic bet on infrastructure and clean energy, underpinned by a strong financial base. With renewables nearing two-thirds of generation capacity, TAQA is well positioned to achieve its 2030 targets and play a pivotal role in supporting rising demand from digitalization and AI, while providing reliable energy and water supplies to underpin long-term economic stability.