Conflict weighs on earnings from Air Arabia, DP World, and Alec

Taqa marks higher income, lower revenue as L’imad takes full control

Abu Dhabi National Energy Company (Taqa) saw a 21.7% y-o-y surge in 2Q net income, which rose to AED 1.98 bn, even as revenues from customers slipped 2.4% y-o-y to AED 13.8 bn. For the first half of the year, net income rose 9.7% y-o-y to AED 4.1 bn, while 1H revenue fell 2.6% y-o-y to AED 27.5 bn, according to its 1H management discussion and analysis report (pdf).

Behind the numbers: Net income expanded thanks to higher returns from Taqa’s transmission and generation divisions, it said in an earnings release (pdf). Revenue, however, was weighed down by lower pass-through costs for Taqa Distribution, construction work at the Shuweihat 1 plant, and reduced oil production following the planned decommissioning of East Brae in the UK North Sea.

REMEMBER- Taqa is now fully controlled by Abu Dhabi’s sovereign wealth fund L’imad, which was set to acquire the remaining 1.88% shares of Taqa yesterday, closing out the final chapter of Abu Dhabi’s utility consolidation strategy. This gives the sovereign wealth fund greater flexibility over long-term capital allocation, investment, and expansion strategy, keeping critical energy assets fully under state ownership.

Watch this space: A delisting could be the next step, given there’s no remaining freefloat, though no delisting plans have been specified yet.

Dividends: Taqa’s board approved a 2Q cash dividend of AED 899 mn, or 0.8 fils per share.

The war weighed on DP World’s 1H income

Conflict-driven disruption at Jebel Ali weighed on DP World's first-half earnings: Ports and logistics operator DP World's net income fell 39.1% y-o-y to USD 585 mn in 1H 2026, according to its financials (pdf). Throughput fell 90.1% y-o-y in 2Q to just 374k TEU, versus a 59.5% decline for the half overall. Its revenue rose 13.1% y-o-y to USD 12.7 bn during the half, while gross container throughput fell 5.7% y-o-y to 42.8 mn TEU. Gross volumes excluding Jebel Ali are up 6.5% like-for-like in 1H.

DP World also noted that Jebel Ali’s infrastructure remains intact, with the decline reflecting reduced vessel traffic rather than physical damage.

DP World's only numeric guidance for 2026 is on spending. It plans to invest approximately USD 3 bn for the year, funding projects including Jebel Ali's expansion, EZ World, London Gateway, and the two new Fujairah terminals it plans to develop as a workaround for the Strait of Hormuz.

Doubling down: DP World is still adding Gulf capacity, with plans for two new terminals on the UAE’s Gulf of Oman coast, away from the Strait of Hormuz disruption that hit Jebel Ali.

Alec Holdings hit by offshore energy costs

Dubai-based construction firm Alec Holdings swung to a net loss in 2Q as regional geopolitical conflict disrupted offshore energy operations and drove up project costs. The DFM-listed contractor reported a net loss of AED 16.6 mn in the second quarter, even as revenues surged 51.3% y-o-y to AED 4.4 bn, according to its earnings release (pdf) and financials (pdf). For 1H, net income fell 10.5% y-o-y to AED 213.8 mn, despite total group revenues climbing 67.6% y-o-y to nearly AED 9 bn.

The margin squeeze was concentrated in the group’s energy services subsidiary. Although energy services revenues rose 36.9% y-o-y to AED 2.8 bn in 1H, it posted a gross loss of AED 157.5 mn as extended offshore work stoppages from regional geopolitical conflict forced the division to absorb fixed idle workforce expenses. Meanwhile, the building and construction division remained the largest contributor, with revenues surging 105% y-o-y to AED 5.8 bn, while related businesses grew 123.7% y-o-y to AED 2.6 bn on higher internal MEP and fit-out cross-selling.

Dividends: The board approved an interim cash dividend of AED 100 mn for 1H 2026, set for an October payment.

Air Arabia also saw a hit to its earnings from the war

Reduced operating capacity meant Air Arabia’s net income after tax came in at AED 87.9 mn in 2Q, down 74.9% y-o-y, according to its financials (pdf) and earnings presentation (pdf). Revenues saw a more muted 3.4% drop to AED 1.7 bn during the period, with higher direct and finance costs weighing on results.

For 1H, revenues dipped 1.1% y-o-y to AED 3.5 bn, as net income dropped by 48.7% to AED 336.1 mn. Net income before tax came in at AED 374.4 mn, down 51.4%. Passenger numbers for 1H were down 14% y-o-y to 8.7 mn, due to airspace closures and disruptions because of the regional war. Higher fuel prices also weighed on earnings.

Parkin records strong 2Q from expansion

Developer expansion and strong sales helped Dubai’s public park operator Parkin record net income of AED 166.2 mn in 2Q, up 12% y-o-y, as revenues grew 14% on a yearly basis to AED 364.1 mn, according to its earnings release (pdf). Revenues from public parking slipped 8% y-o-y but still provided the biggest topline contribution with AED 121.9 mn. Its developer parking segment saw the most growth with 61% and AED 35.8 mn overall, followed by its season cards and permits segment with AED 50% growth to AED 78.2 mn.

Net income rose 23% in 1H to AED 351.4 mn on the back of a 26% uptick in revenues to AED 593.3 mn. Once again, the developer, seasonal cards, and permits segments saw the biggest topline growth, all clocking a 63% uptick, while public parking brought in the most revenues.

Behind the growth: Developer spaces rose 213.8% y-o-y to close out 1H with 61.5k spots on the back of new contracts, helping to push total parking spaces up 27% y-o-y to 211.5k.

Dividends: The operator is aiming to pay out whichever is higher of at least 100% of net income for 1H, or free-cashflow to equity.