TAQA becomes first UAE company paying dividends quarterly

To pay AED1.69 bn for first 9 months as dividend

ABU DHABI/ December 14, 2020: The shareholders of Abu Dhabi National Energy Company (TAQA), a leading, fully integrated utilities company and one of UAE’s largest publicly listed companies by market capitalisation, have approved a new progressive dividend policy for 2020-2022.

Further, the board of directors has approved an interim dividend payment to shareholders. For the first nine months of 2020, the dividend payment will be 1.50 fils per share (AED1.687 billion in total).

This payment will constitute the first portion of the full-year 2020 dividend, which is expected to be 2.50 fils per share (AED 2.811 billion in total), which will grow by 10 per cent annually for the following two years (2.75 fils per share for 2021 and 3.00 fils per share for 2022).

EGM gives approval

Shareholders’ approval has been received at an Extraordinary General Assembly meeting (EGM) held on Monday.

A statement from the company said the dividend policy adopted recognises TAQA’s increased scale and improved financial profile, resulting from its landmark transaction in July with Abu Dhabi Power Corporation (ADPower).

Setting a trend of sorts

According to the approved policy, dividends for 2020 will be paid through an interim dividend of 1.50 fills  per share, which is due to be paid on December 30, 2020, and a final dividend of AED1 per share to be paid after the annual general meeting (AGM) in 2021. Dividends for 2021 and 2022 will be paid quarterly, making TAQA the first UAE-listed company to pay dividends on a quarterly basis.

Following TAQA’s EGM, Mohamed Hassan Al Suwaidi (seen in the picture), chairman of TAQA Group, said that TAQA’s new strategic imperatives include providing attractive and sustainable shareholder returns through the adoption of a new progressive dividend policy and permitting up to 49 per cent foreign ownership of TAQA’s issued capital.

“These are important steps to diversify the company’s investor base, improve the stock’s liquidity and support the significant efforts of our country’s leadership to encourage foreign capital inflows and position the UAE among the most attractive economies for foreign direct investment,” Al Suwaidi said.

Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, said TAQA has maintained its commitment to pay a progressive and attractive dividend to its shareholders as the company accelerates its post-integration journey.

“As TAQA continues to deliver on its core mandate – to supply energy and water reliably and sustainably to those we serve – we will balance funding growth, rewarding our shareholders and upholding our strong credit ratings,” Husain Thabet added.

“Today’s approval for TAQA’s new dividend policy reinforces the Board’s and shareholders’ confidence in the company’s financial strength and predictable cash flow as well as our growth plans for the future,” he added.

Landmark deal with ADPower

The announcement follows the landmark transaction, in July 2020, between TAQA and ADPower, whereby the majority of ADPower’s power and water generation, transmission and distribution assets were transferred to TAQA.

The company’s assets, worth approximately AED191 billion, are located in the UAE, Canada, Ghana, India, Iraq, Morocco, Oman, the Netherlands, Saudi Arabia, the United Kingdom, and the United States.

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