One-off transactions boost Taqa Group’s 1Q net income: The UAE’s Taqa Group (Taqa) reported a 480% y-o-y rise in net income in 1Q 2023 to AED 11.6 bn, driven by a one-off gain from acquiring a 5% stake in Adnoc Gas, its earnings release (pdf) showed. Revenues were up by 6% y-o-y during the first three months of the year to AED 13.1 bn.

New UAE income tax capped Taqa’s gain from acquisition: The 5% acquisition in Adnoc Gas was partially offset by a one-off AED 1.2 bn deferred tax liability — part of a new UAE corporate income tax introduced 1 January 2024. Without the new share purchase and deferred tax liability, Taqa’s net income would stand at AED 1.9 bn — in line with last year’s figures.

Drivers behind revenue gain: Taqa’s increase in revenues was primarily due to “higher pass-through bulk supply tariffs,” or in other words, the price that the company sets for selling its upstream bulk supplies —such as electricity or gas— to downstream distribution companies.

Green highlights from 1Q 2023: Taqa saw an 8% reduction in greenhouse gas emissions in 2022, which puts it “firmly on track to achieve its 2030 targets,” according to the statement. Taqa and Adnoc Distribution partnered in January to establish a mobility joint venture, E2GO, to build and operate EV charging infrastructure in Abu Dhabi. The company also recently raised an aggregate USD 1.5 bn in its dual-tranche green bond issuance last month, which was 10x oversubscribed.

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