Abu Dhabi National Energy Company (Taqa) has reported a net income of AED3.7bn ($1bn) for the first half of 2025, down 19.7% year-on-year, as lower oil and gas output and weaker oil prices weighed on earnings.

Revenue for the period rose 4.5% to AED28.4bn, driven by higher pass-through costs in the transmission and distribution segment.

Ebitda fell 11% to AED10.2bn. Taqa said underlying profitability in its core utilities businesses remained strong despite the decline.

Profitability was impacted by the cessation of production from four UK oil and gas assets, lower oil prices, higher financing costs and non-recurring items.

In the first half of the year, Taqa advanced its international expansion strategy. In Morocco, it signed agreements with public and private sector partners for integrated power and water infrastructure projects, including gas-fired and renewable generation, desalination and transmission. The initiatives represent a potential investment of about AED52bn.

In Uzbekistan, the company completed the joint acquisition, alongside Mubadala, of the 875MW Talimarjan power complex. In the UK, Taqa Transmission is integrating the recently acquired Transmission Investment, which manages about AED15bn in offshore transmission assets.

Other developments included transferring the P18-A gas platform in the Netherlands to Porthos for carbon capture and storage, and Masdar’s 100% acquisition of Greece’s Terna Energy. Masdar also issued a $1bn green bond to fund renewable projects.

In the UAE, Taqa and Emirates Water & Electricity Company (Ewec) signed a power purchase agreement to convert the Shuweihat 1 plant into a flexible reserve facility to support greater renewable integration. The company is also progressing the 1GW Al-Dhafra Thermal project to meet rising demand from artificial intelligence and digital infrastructure.

Taqa’s group CEO and managing director, Jasim Husain Thabet, said: “Despite headwinds, we continued to make tangible progress on priority projects across generation, water and transmission, increasing system flexibility and expanding our global portfolio.”

Gross debt was reduced to AED61.7bn, while capital expenditure reached AED5.2bn, focused on flexible generation, transmission upgrades and desalination projects.

Taqa said it remains committed to expanding low-carbon power and water solutions and strengthening grid infrastructure across its markets.