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POWERING A THRIVING FUTURE
H1 2021 Financial ResultsAnalyst Presentation
Abu Dhabi National Energy Company (TAQA)
11 Aug 2021
Disclaimer
These materials have been prepared by Abu Dhabi National Energy Company (“TAQA” or the “Company”). The information contained in this presentation may not have
been reviewed or reported on by the Company’s auditors. The Company relies on information obtained from sources believed to be reliable but does not guarantee its
accuracy or completeness.
These materials have been prepared for information purposes only and do not form part of any prospectus, offering memorandum or offering circular or an offer to sell
any securities and are not intended to provide the basis for any credit or any third party evaluation of any securities or any offering of them and should not be considered
as a recommendation that any investor should subscribe for or purchase any securities. The information contained herein supersedes any previous such information
delivered to you and will be superseded by any such information subsequently delivered. The information contained herein is subject to change without notice and past
performance is not indicative of future results. The Company is under no obligation to update or keep current the information contained herein. No person shall have any
right of action (except in case of fraud) against the Company or any other person in relation to the accuracy or completeness of the information contained herein.
This presentation may contain, or may be deemed to contain, "forward-looking statements" regarding future events or the future financial performance of the Company.
These forward-looking statements include all matters that are not historical facts. The inclusion of such forward-looking information shall not be regarded as a
representation by the Company or any other person that the objectives or plans of the Company will be achieved. The Company undertakes no obligation to publicly
update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Please note that rounding differences may appear throughout the presentation.
2
H1 2021 results – summary
Stable utilities businesses boosted by strong operational and financial performance within Oil and Gas
Strong operational performance amidst continuing COVID-19 circumstances
● High technical availability levels maintained for power and water businesses
● Oil and gas production up versus prior-year period
Financial performance boosted by a recovery of commodity prices
● Revenue of AED 22.2 billion (+11% H1 y/y)
● EBITDA of AED 9.9 billion (+19% H1 y/y) reflecting higher revenues, partially offset by
higher expenses and boosted by higher associate income
Net income (TAQA-share) of AED 2.9 billion for H1 2021
● Driven by higher EBITDA, partially offset by higher DD&A, no impairments and lower
finance costs
● Increase of c.AED 2.4 billion versus prior year period due to higher contribution from Oil
& Gas and AED 1.5 billion post-tax impairment charge in H1 2020
Capex of AED 2.0 billion in H1 2021 (-3% H1 y/y)
● Reflects increased spend within Transmission and Distribution offset by lower figures
within Generation and Oil & Gas
Free cash flows1 were very strong at AED 7.4 billion for the period
3
Group financial highlights (AED million)
22,191
19,983
H1 2021
H1 2020PF
Revenues
EBITDA
Net income (TAQA-share)
CAPEX
9,874
8,306
H1 2021
H1 2020PF
2,856
472
H1 2021
H1 2020PF
1,986
2,055
H1 2021
H1 2020PF
Gross debt
69,277
76,007
6m 2021
YE 2020
42% margin
44%
1. Operational cash flows before finance costs less investing cash flows
45%
43%
12%
Regulated Contracted Other
4
59%27%
14%
Regulated Contracted Other
Pro forma LTM Revenue Pro forma LTM EBITDA
AED
43.4bn1AED
17.6bn1
Regulated and long-term contracted earnings
represent over 85% of revenues and EBITDA
12 years2 weighted residual life of P(W)PAs
excluding projects under development. The latter
will have 25 or 30-year purchase agreements once
completed in the next 2 years
Single regulatory framework in place for 3
regulated networks (Transco, ADDC and AADC) in
Abu Dhabi ensures predictable cash flows
1. TAQA last twelve months (LTM) pro-forma consolidated financials
2. Weighted by gross installed power capacity and excluding Red Oak tolling agreement - merchant asset
• Contracted: Local and international power generation assets
• Regulated: Transmission and Distribution companies
• Other: Oil and Gas
Long-term predictability and visibility of cash flow profile underpinned by 90%
or more of revenues and EBITDA derived from regulated and contracted assets
P
P
P
Highly predictable and secure cash flow profile
85% or more of revenues and EBITDA derived from regulated and contracted businesses
Transmission & Distribution highlights
Stable EBITDA margins and net income contribution boosted by one-off gains
High network availability and security of supply during the period
● 98.2% for power and water transmission (98.5% H1 2020)
Higher revenues partially offset by higher operating expenses
● Increased revenues (+6% H1 y/y) on higher pass-through costs incurred related to bulk
supply tariffs paid by the distribution businesses
● Revenues further increased on new revenues associated with battery storage projects
previously carried out by the distribution businesses
● Higher operating expenses (+8% H1 y/y) reflected higher bulk supply tariffs
● Regulated asset base lower (-1% during H1 2021) on UAE deflation during the period
● EBITDA of AED 4.3 billion (+4% H1 y/y)
Net income contribution to the Group of AED 2.4 billion (+8% H1 y/y) boosted by new
revenues for battery storage projects previously carried out by the distribution companies
Capex higher (+13% H1 y/y) on accelerated spend in comparison to prior-year period which
saw project cancellations and deferrals driven by the COVID-19 pandemic.
5
T&D highlights (AED million)
12,846
12,092
H1 2021
H1 2020PF
Revenues
EBITDA
Net income (consolidated)
CAPEX
4,301
4,154
H1 2021
H1 2020PF 34% margin
33%
2,357
2,184
H1 2021
H1 2020PF
1,393
1,235
H1 2021
H1 2020PF
80,135
79,218
YE 2020
6m 2021
Regulated asset base (RAB)
Generation highlights
Continues to be underpinned by UAE contracted power and water generation
6
Generation highlights (AED million)
5,905
5,937
H1 2021
H1 2020PF
Revenues
EBITDA
Net income (consolidated)
CAPEX
3,952
3,680
H1 2021
H1 2020PF 62% margin
67%
561
338
Q1 2021
Q1 2020PF
133
270
H1 2021
H1 2020PF
92.6%
93.3%
H1 2021
H1 2020PF
Global technical availability (%)
Solid operational performance throughout the period
● Global technical availability at 92.6% (vs. 93.3% for H1 2020)
● Reflects major planned outage within the Jorf Lasfar power complex in Morocco
Robust profitability across the portfolio
● Overall generation revenues broadly flat at AED 5.9 billion (-0.5% H1 y/y) with lower
revenues in Morocco offset by stronger UAE, Ghana and Red Oak performance
● Lower operating expenses (-9% H1 y/y) reflected lower pass-through fuel costs in
Morocco
● EBITDA of AED 4.0 billion (+7% H1 y/y)
Net income contribution to the Group of AED 561 million
● Higher EBITDA, lower finance costs on amortizing project finance debt and higher
associate income from Sohar Aluminium on higher output prices
Capex declined to AED 83 million (-51% H1 y/y) reflecting higher comparative period spend in
H1 2020 on lifetime extension projects on turbines within our Shuweihat S1 plant
Oil & Gas highlights
Significant increase in profitability on commodity price rebound and higher volumes
7
Oil & Gas highlights (AED million)
Revenues
EBITDA
Net income (consolidated)
CAPEX
124.2
122.4
H1 2021
H1 2020PF
Production (mboepd)
3,440
1,954
H1 2021
H1 2020PF
1,810
552
H1 2021
H1 2020PF
Margin
28%
53%
533
-1,573
H1 2021
H1 2020PF
460
550
H1 2021
H1 2020PF
Global production higher at 124.2 mboepd (+1% H1 y/y)
Stronger financial performance on higher volumes and commodity prices
● Revenues of AED 3.4 billion (+76% H1 y/y) reflect recovery in TAQA’s realized output oil
and gas prices (oil price +76% H1 y/y to US$ 60.4/bbl; gas price +78% to US$ 3.4/boe)
● Higher volumes reflected TAQA’s recognition of additional interest in certain fields of the
UK North Sea following a partner default
Net income to the Group of AED 0.5 billion (H1 2020 loss: AED 1.5 billion)
0
20
40
60
80
2020 2021
Brent WTI
0
4
8
12
16
2020 2021
Henry Hub
AECO
NBP
Benchmark gas prices (US$/mmBtu)Benchmark oil prices (US$/bbl)
Liquidity and debt profile
Strong liquidity levels and significant debt reduction
8
Robust liquidity position
● Total liquidity of AED 18.9 billion consisting of:
− Cash and cash equivalents of AED 5.5 billion
− Undrawn credit facilities of AED 13.4 billion
Debt levels lower on RCF repayments and project finance amortization
● Gross debt1 of AED 69.3 billion (-9% vs. YE 2020) with RCF repayment
of AED 4.2 billion during Q2 2021 and ongoing project debt amortization
Corporate debt maturity profile3 (US$ million as at quarter end)
1. Net capital defined as net debt plus equity (including minorities and accumulated changes in the fair value of derivatives); 2. net finance costs include ARO accretion expenses
Dec-2020 Jun-2021
Net debt-to-capital ratio1 49% 47%
EBITDA (LTM) / net finance costs (LTM)2 4.9x 5.4x
Net debt / EBITDA (LTM) 4.2x 3.6x
Fixed rate debt (% total) 87% 95%
Key credit metrics
873 1,001
1,842 1,751 1,469
1,646
654
1,377
583
1,561
390 389 411 380 326
1,211
120 117 286
37 38 40 14
500 750
21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 ' 49 '' 2051
Drawn RCF Bonds (corporate) Project / subsidiary debt
Delivering on our quarterly dividend policy
Board approves second interim cash dividend for 2021
9
The Board of Directors has approved the second interim cash dividend for financial year 2021 of AED 618 million (0.55 fils/share), in line
with shareholder-approved dividend policy
● Last day to participate: Wednesday, 18 Aug 2021
● Ex-dividend date: Thursday, 19 Aug 2021
● Record date: Sunday, 22 Aug 2021
● Payment date: Sunday, 5 Sep 2021
We remain committed to maintaining investment grade ratings on a standalone basis,
as previously communicated
1.50
0.55 0.60
0.55 0.60
0.550.60
1.001.10
1.202.502.75
3.00
2020 202221
+10% p.a.
2.8 (paid) 3.1 3.4
Dividends1 (AED billion)
DPS (fils/share)
1. Proposed dividend payouts of indicated financial years
TAQA dividend policy
Q&A session
