Gulf News: Dubai: TAQA reported net income of Dh7.5 billion for 2025, marking a 5.6% increase from a year earlier after strong utility performance offset weaker oil and gas income tied to lower commodity prices and planned production shutdowns in the North Sea. Revenue reached Dh54.8 billion, broadly steady year on year, while EBITDA stood at Dh20.7 billion despite non-cash charges linked to generation and upstream assets.

Investors focused on the company’s capacity expansion and rising capital investment which climbed 48.4% to Dh14.5 billion. Spending targeted power generation, water infrastructure and transmission networks including the 1 GW Al Dhafra Thermal Power Plant and major grid upgrades designed to meet rising electricity demand linked to industrial growth and digital infrastructure.

 Capacity expansion shapes growth outlook

Gross generation capacity now exceeds 70 gigawatts, nearly triple the level recorded in 2020, with renewables accounting for about 64% of the portfolio. Management aims to reach 150 gigawatts by 2030 with two thirds sourced from renewable energy, positioning the company to benefit from long term demand for clean power and desalinated water across emerging and developed markets.

Large scale projects supported that expansion. Work progressed on a solar and battery development designed to deliver continuous clean electricity, combining 5.2 gigawatts of solar capacity with 19 gigawatt hours of storage to provide 1 gigawatt of uninterrupted supply. Agreements with industrial partners aim to accelerate decarbonisation while a planned Dh7 billion acquisition of power and water assets will add more than 3 gigawatts of generation and significant desalination capacity.

 International deals widen footprints

Global growth remained central to strategy with acquisitions and project agreements spanning Europe, Central Asia, North Africa and the Gulf. Planned purchase of GS Inima will add 171 million imperial gallons per day of desalination capacity while projects in Saudi Arabia will contribute 3.6 gigawatts of gas fired power. Agreements in Morocco could lead to investment approaching Dh52 billion to expand integrated power and water infrastructure, strengthening the company’s position in energy transition markets.

Operations in Uzbekistan added a 40% stake in a large power plant while transmission assets in the UK marked entry into a new segment. Portfolio adjustments included divestment of wind and thermal assets in the US and India, reflecting a shift toward higher return infrastructure platforms.

 Dividend proposal signals confidence

Board members proposed a fixed fourth quarter dividend of 1.5 fills per share plus a variable dividend of 0.7 fills for the full year, bringing total proposed 2025 payouts to 4.45 fills per share compared with 4.25 fills in 2024. Directors also recommended a revised dividend framework covering 2026 through 2028 that retains fixed and variable components while maintaining annual growth in the fixed portion.