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ABU DHABI NATIONAL ENERGY COMPANY PJSC (TAQA)
MANAGEMENT’S DISCUSSION AND ANALYSIS
1. Health, Safety and Environment
2. Summary of Results
3. Results of Operations by Business Line
4. Capital Structure and Liquidity
5. Capital Expenditure
This document should be read in conjunction with TAQA’s unaudited consolidated financial statements for the period ended 30
June 2022. Within the MD&A we use the terms “the Group”, “we”, and “our” to refer to TAQA.
1. Health, Safety and Environment
Period ended 30 June
T&D Generation (1) Oil & Gas Group Total
HSE Overview 2022 2021 2022 2021 2022 2021 2022 2021
Fatalities Number - 1 - - - - - 1
Recorded injury rate (RIR) (incident/1 million hrs) 0.17 0.06 0.00 0.40 1.67 1.72(2) 0.50 0.47
Lost time injury (LTI) Number - - - 1 4 3 4 4
Reportable spills Number - - 1 1 11 21 12 22
1) Refers to TAQA operated assets only
2) O&G Q2-2021 RIR was updated based on revised manhours calculation
“Safe” is our first value. We put safety above all else and HSE is a fundamental part of TAQA’s business.
A strict set of HSE rules, guidelines, and reporting tools to ensure a high level of professionalism and
adherence to regulations is enforced wherever we operate. All members of our workforce are
empowered with the responsibility and authority to stop unsafe work.
The Group RIR of 0.50 for H1 2022 is slightly higher than the Group RIR of 0.47 for H1 2021 as a result
of increased levels of high-intensity operations during 2022. 4 LTIs were recorded in the first half of
both years, and the Group continued its ongoing efforts to promote improved reporting of injuries less
severe than LTIs. 12 reportable spills were reported in H1 2022 compared to 22 in H1 2021, with the
total release volume being 87% less than the same period in 2021.
Managing HSE performance requires constant vigilance, targeted interventions, and continuous safety
and environmental improvement programs. Ongoing measures include behavioral safety and
leadership programs, further developing our HSE management system, contractor management
enhancements, the delivery of focused safety audits, increased reporting of unsafe acts, conditions and
near misses, and the sharing of learnings from incidents.
Through improved investigations, learning from incidents and addressing emerging trends and insights,
we strive for continuous improvement in safety within our operations in line with TAQA’s HSE
management system. We continue to focus our efforts on eliminating injuries and fatalities in our
activities and seeking to increase our influence on our partners where TAQA is not the operator, through
shared workshops and HSE reviews.
Page 2 of 8
POWERING A THRIVING FUTURE2. Summary of Results
Three months ended Six months ended
30-Jun 30-Jun 30-Jun 30-Jun
(AED million, except where indicated) 2022 2021 2022 2021
Commercial Availability – Generation1 % 97.6 97.3 97.5 97.7
Oil & Gas Production2 mboe/d 121.4 124.3 124.1 124.2
T&D Regulated Asset Value (RAV) - - 76,813 77,3895
Gross Revenues 13,013 11,865 25,426 22,191
Adjusted EBITDA3 5,713 5,182 11,326 9,874
Net Income4 2,312 1,421 4,283 2,856
1) Represents weighted average for all power producing assets based on plant capacity.
2) Includes working interest production from North America and Europe, and entitlement volumes from Iraq.
3) Adjusted EBITDA is defined as IFRS earnings before finance costs, net foreign exchange gain/loss, interest income, income tax,
depreciation, depletion and amortization and other income.
4) Net income above is share attributable to common shareholders of TAQA.
5) RAV figures as at 31 December 2021
Financial highlights:
 Group revenues of AED 25.4 billion, 15% higher than the prior-year period, primarily due to
higher commodity prices within the Oil & Gas segment.
 Adjusted EBITDA was AED 11.3 billion, up 15%, mainly reflecting higher revenues partially
offset by higher expenses.
 Net income (TAQA-share) was AED 4.3 billion, 50% higher than the prior-year period, with
greater contribution from the Oil & Gas segment.
 Capital expenditure was AED 1.8 billion, 10% lower than the prior-year period, mainly driven
by lower expenditure in the Transmission & Distribution segment.
 Free cash flow was AED 8.3 billion, 11% higher than the same period last year, maintaining
significant liquidity (AED 22.3 billion in cash and cash equivalents and undrawn corporate credit
facilities).
 Gross debt of AED 63.1 billion, down from AED 65.0 billion at the end of 2021, further improving
the Group’s credit metrics.
Operational highlights:
 Transmission network availability for power and water was 98.4%, a slight improvement on the
prior-year period.
 Generation global technical availability was 97.5%, slightly lower compared to 97.7% from the
prior-year period, mainly due to unplanned maintenance within the UAE fleet.
 Oil & Gas average production volumes were 124.1 thousand barrels of oil equivalent per day
(boepd), unchanged on the same period last year.
Page 3 of 8
POWERING A THRIVING FUTURE3. Results of Operations by Business Line
Period ended 30 June
Corp. &
Group Consolidated T&D Generation Oil & Gas Group Total
Elimination
Income Statement
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
(AED millions)
Total revenues 13,236 12,846 6,502 5,905 5,688 3,440 - - 25,426 22,191
Operating expenses (8,779) (8,050) (2,884) (1,944) (1,844) (1,525) 14 1 (13,493) (11,518)
G&A expenses (503) (495) (123) (151) (101) (105) (173) (184) (900) (935)
Share of results of
- - 292 142 - - 1 (6) 293 136
associates & joint ventures
Adjusted EBITDA 3,954 4,301 3,787 3,952 3,743 1,810 (158) (189) 11,326 9,874
Depreciation, depletion
(2,024) (2,046) (2,319) (2,350) (479) (1,397) 15 18 (4,807) (5,775)
and amortization
Finance costs (2) (2) (898) (923) (223) (205) (364) (439) (1,487) (1,569)
Other gains / (losses) 106 104 (114) 7 30 674 83 66 105 851
Tax (expense) / credit - - (181) (125) (748) (349) 36 22 (893) (452)
Net profit (loss) 2,034 2,357 275 561 2,323 533 (388) (522) 4,244 2,929
Attributable to
Non-controlling interest - - (39) 73 - - - - (39) 73
Net profit (TAQA share) 2,034 2,357 314 488 2,323 533 (388) (522) 4,283 2,856
As at
Group Consolidated Corp. &
T&D Generation Oil & Gas Group Total
Balance Sheet Elimination
30-Jun 31-Dec 30-Jun 31-Dec 30-Jun 31-Dec 30-Jun 31-Dec 30-Jun 31-Dec
(AED millions) 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Property, plant &
82,158 83,335 32,075 33,691 5,372 5,468 8 (97) 119,613 122,397
equipment
Operating financial assets - - 9,753 10,322 - - - - 9,753 10,322
Investment in and loans to
- - 1,483 1,279 - - 405 404 1,888 1,683
associates & joint ventures
Intangible assets 4,755 4,755 12,582 13,186 29 33 - - 17,366 17,974
Deferred tax assets - - 63 63 5,471 5,535 (1) - 5,533 5,598
Other assets 5,457 4,667 9,933 9,160 2,916 2,471 6,234 5,925 24,540 22,223
Total Assets 92,370 92,757 65,889 67,701 13,788 13,507 6,646 6,232 178,693 180,197
Total Liabilities 14,894 14,538 44,003 43,863 17,399 16,981 27,688 31,613 103,984 106,995
Total Equity 77,476 78,219 21,886 23,838 (3,611) (3,474) (21,042) (25,381) 74,709 73,202
Page 4 of 8
POWERING A THRIVING FUTURETransmission & Distribution Business
The Transmission & Distribution (T&D) business contributed net income of over AED 2.0 billion to the
Group, a decrease of AED 0.3 billion when compared to the prior year.
Period on period revenues increased by AED 0.4 billion to AED 13.2 billion mainly due to higher pass-
through bulk supply tariffs (BST) of AED 0.7 billion. Higher BST was partially offset by AED 0.2 billion
reduction in revenue due to a one-off recognition of projects in 2021, and AED 0.1 billion lower
transmission revenues in the Norther Emirates.
Higher BST pass-through cost was also the main driver of the AED 0.7 billion increase in operating
costs to AED 8.8 billion for the first half of 2022.
Generation Business
Generation business contributed a net income of AED 0.3 billion, a reduction of AED 0.2 billion when
compared to the first half of the prior year.
Generation revenues were AED 0.6 billion higher than last year, totaling over AED 6.5 billion. The
increase is mainly due to higher pass-through fuel revenues of AED 0.9 billion in Morocco, which is also
reflected as a fuel cost in operating expenses. This revenue increase was partially offset by an AED
0.4 billion reduction in domestic fleet revenue, of which AED 0.2 billion was due to the decommissioning
of the Taweelah A2 plant, and AED 0.1 billion was due to lower technical availability.
Operating expenses within Generation increased by AED 0.9 billion to AED 2.9 billion, mainly driven by
fuel pass-through costs of AED 0.9 billion in our Moroccan business mentioned above. The operating
expenses within the domestic assets were generally in line with the prior period.
The Group’s share of results of associates and joint ventures improved by AED 0.2 billion to AED 0.3
billion when compared to the prior period. This was mainly driven by the Group’s investment in Sohar
Aluminium and its improved results on the back of higher aluminum prices.
Other gains/(losses) mainly relate to foreign exchange losses of AED 0.1 billion relating to Moroccan
asset due to the weakening of Euro and Moroccan Dirham versus USD.
The increase in tax charge mainly reflected increased profitability in Morocco.
Oil & Gas Business
The Oil & Gas business generated net income of AED 2.3 billion compared to AED 0.5 billion in the
prior period. This improvement of AED 1.8 billion in net income was largely due to the improved
commodity price environment, driving revenues to AED 5.7 billion which was an increase of AED 2.2
billion versus 2021.
The Group’s average realised oil price rose significantly to $90.83/bbl in 2022 compared to $60.27/bbl
in 2021. Similarly, average realised gas prices increased to $8.26/mmbtu, from $3.36/mmbtu in 2021.
Average production for the first half of this year remained fundamentally in line with prior year at 124.1
mboe/d.
Operating costs increased by AED 0.3 billion mainly incurred at our European business and driven by
higher fuel and emissions trading costs.
Depreciation expense declined by AED 0.9 billion compared to the prior year, reflecting a one-off asset
retirement obligation revision in our European assets in 2021 due to a partner default. This was partially
offset by an AED 0.6 billion related tax relief on the additional abandonment liability, recorded as other
gain / (losses) in the prior period.
Tax expense in the first half of this year increased by AED 0.4 billion in line with higher taxable profits.
Page 5 of 8
POWERING A THRIVING FUTURE4. Capital Structure and Liquidity
As at
Group Consolidated Position 30-Jun 31-Dec
(AED million) 2022 2021
Total assets 178,693 180,197
Total equity 74,709 73,202
Total debt 63,130 64,965
Net debt-to-capital ratio 1 42% 44%
Unused portion of credit facilities 13,574 13,486
Net cash and cash equivalents 8,733 8,422
Total Available Liquidity 22,307 21,908
1) ‘Net debt’ divided by ‘Total equity’ plus ‘Net debt’ where ‘Net debt’ is ‘Total debt’ less
‘Net cash and cash equivalents’
Capital Structure
TAQA’s capital structure is comprised of 42% debt based on the balance sheet values as at 30 June
2022 and includes fair value adjustments.
Debt by type Debt by business line
d 30,382 30,382
32,748
M Corporate - Bonds/Other Subsidiaries - Bonds Subsidiaries - Bank Loans Corporate Generation
The Group’s external sources of funding include corporate bonds and when drawn down, the Group’s
revolving credit facility (RCF). These funds have historically been used to fund investment, acquisition
and growth within the group. The Generation subsidiaries are generally funded by project debt, either
in the form of limited or non-recourse bank loans or project bonds.
The Group continues to monitor the total debt position and refinancing options available to ensure the
debt mix and cost of debt is at an optimal level. Please refer to the ‘Maturity Profile’ section below for
updates on recent debt issuances.
Interest rates for the Group’s project debt, bonds and loans are largely fixed, either contractually or
through interest rate hedging arrangements. The main exception is TAQA’s RCF, which attracts floating
market rates and therefore is exposed to prevailing short-term LIBOR borrowing rates. During 2021,
TAQA has settled the RCF facility in full. As our medium and long-term bonds and loans mature, we
may be required to refinance the debt at market rates or utilise other available liquidity. Accordingly,
TAQA is partially exposed to interest rate risk in both the short and long term.
At 30 June 2022, after taking into account the effect of interest rate swaps, approximately 95% the
Group’s borrowings are at a fixed rate of interest (December 2021: 95%).
The Group’s overall cost of debt averaged at 4.56% during the six months ended 30 June 2022.
Page 6 of 8
POWERING A THRIVING FUTURETA©.1
Liquidity
The Groups total available liquidity at 30 June 2022 was AED 22.3 billion, an increase of AED 0.4 billion
on the position at the end of 2021. Total available liquidity was made up of AED 13.6 billion of available
credit facilities and AED 8.7 billion of net cash and cash equivalents.
Available credit facilities mainly comprise the Groups AED 12.9 billion (US $3.5 billion) multicurrency
revolving credit facility (RCF) with a syndicate of 13 banks. Repayments amounting to AED 5,133 million
were made during the six month period ending 30 June 2021 and the facility was fully repaid. The RCF
remains undrawn as at 30 June 2022.
As of 30 June 2022, 10% of the Group's total debt is classified as current (31 December 2021: 5%),
based on the carrying value of borrowings.
Maturity Profile
The Group'S financial liabilities repayment schedule as at 30 June 2022 based on contractual
undiscounted payments is as follows:
As of 30 June 2022, the Group total debt was standing at AED 63.1 billion, a reduction of AED 1.8 billion
during the first half of the year (31 December 2021: AED 65.0 billion).
Debt reduction of AED 1.8 billion included the Group'S full repayment of its AED 0.6 billion Islamic loan,
which matured in March 2022, plus an additional AED 0.7 billion of scheduled project debt repayments
and AED 0.2 billion of forex revaluation in our Generation business, and AED 0.3 billion of recurring fair
value adjustment to corporate debt.
In the first quarter of 2022, the group raised its first green finance by successful pricing of green senior
secured bonds for an aggregate principal amount of US$700.8 million (AED 2.6 billion). The bond
refinanced existing debt facilities of Sweihan PV Power Company PJSC.
Page 7 of 8
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Liquidity
The Group'S total available liquidity at 30 June 2022 was AED 22.3 billion, an increase of AED 0.4 billion
on the position at the end of 2021. Total available liquidity was made up of AED 13.6 billion of available
credit facilities and AED 8.7 billion of net cash and cash equivalents.
Available credit facilities mainly comprise the Group's AED 12.9 billion (US $3.5 billion) multicurrency
revolving credit facility (RCF) with a syndicate of 13 banks. Repayments amounting to AED 5,133 million
were made during the six month period ending 30 June 2021 and the facility was fully repaid. The RCF
remains undrawn as at 30 June 2022.
As of 30 June 2022, 10% of the Group's total debt is classified as current (31 December 2021: 5%),
based on the carrying value of borrowings.
Maturity Profile
The Group'S financial liabilities repayment schedule as at 30 June 2022 based on contractual
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As of 30 June 2022, the Group total debt was standing at AED 63.1 billion, a reduction of AED 1.8 billion
during the first half of the year (31 December 2021: AED 65.0 billion).
Debt reduction of AED 1.8 billion included the Group'S full repayment of its AED 0.6 billion Islamic loan,
which matured in March 2022, plus an additional AED 0.7 billion of scheduled project debt repayments
and AED 0.2 billion of forex revaluation in our Generation business, and AED 0.3 billion of recurring fair
value adjustment to corporate debt.
In the first quarter of 2022, the group raised its first green finance by successful pricing of green senior
secured bonds for an aggregate principal amount of US$700.8 million (AED 2.6 billion). The bond
refinanced existing debt facilities of Sweihan PV Power Company PJSC.
Page 7 of 8
POWERING A THRIVING FUTURE5. Capital Expenditure
Period ended 30 June
(AED million) T&D Generation O&G Corporate Group Total
2022 1,187 123 465 8 1,783
2021 1,393 133 447 - 1,973
Capital Expenditure refers to additions to Property, Plant and Equipment, excluding right of use assets.
The Group’s total capital expenditure for the first half of 2022 was AED 1.8 billion, a 10% decrease
versus the prior period.
Transmission & Distribution capital expenditure for the period was AED 1.2 billion, a 15% decrease
versus the prior period mainly driven by increased in number of projects phased into execution stage in
2021 from planning stage in 2020.]
Generation capital expenditure was in line with prior period and mainly relates to planned major
maintenance of the plants in line with established maintenance programs.
Oil & Gas capital expenditure was 4% higher than 2021. Higher spending in our North American assets,
were largely offset by lower spending across our European assets, as the shift into decommissioning
mode on certain late life assets continues successfully.
Jasim Husain Thabet Stephen Ridlington
Chief Executive Officer & Managing Director Chief Financial Officer
9 August 2022
Page 8 of 8
POWERING A THRIVING FUTURE

Sentiment: neutral