TAQA H1 2021 Results - Energy Transition and Financial Performance
TAQA public securities market performance
Significant outperformance against general market index post-transaction
• TAQA's share price has tripled (up ~180%) since deal announcement
• ADX market index up 49% over the same period
• Average daily value traded at US$ 2-3mn (up from US$ 0-1mn pre-transaction)
Corporate bond curve now trades flat to Mubadala and at significantly tighter spreads
to Abu Dhabi sovereign
• New 2028s trade inside and 2051s flat to Mubadala (older, less liquid 2030s shown
below for historical trend, trading 13bps wide)
• TAQA 10-year bonds currently yield 2.268% and 30-year bonds 3.120%
Price (AED)
2.2
3 Feb
Announcement
2
1.8
1.6
1.4
1.2
0.8
0.6
H
0.4
0.2
1
0
Jan-20
Apr-20
13 Dec
1 July
Closing
10 Nov
9m 2020
results and
new proposed
dividend policy
Dividend policy approved;
1 Sep
22
interim dividends distributed O&G strategic
review!
14 Feb
20
FY 2020 results
20
11 Aug
29 Apr
H1 2021 results:
AGM approval
18
3 Nov
Notice of BoD
FOL discussion
24 Mar
2030 strategy
announcement
Jul-20
Oct-20
Jan-21
Apr-21
TAQA (AED)
Traded Value (USDmn; RHS)
Source: Bloomberg, as of 5 Sep 2021
16
5 May
Q1 2021 results
14
Daily traded value (USDmn)
Yield spread
COVID-19 market
dislocation
3 Feb
Announcement
10 Nov
9m 2020 proforma
1.8%
29 Apr
AGM approval
1 July
Closing
results and new
proposed dividend
policy
1.4%
12
TAQA AED 1.37
1.0%
(+186% vs Feb 3 2020)
10
8
ADSMI
0.6%
(+49%)
6
4
0.2%
2
19 Apr
Bond tender offer and
new issue launch
5%
96
4%
Yield
3%
Yield 2.268% (RHS)
(-83bps vs Feb 3 2020)
2%
Spread to AD
45bps (-33bps)
Spread to Mubadala
13bps (-33bps)
1%
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
0
-0.2%
Jul-21
ADX General (rebased 2/2/20)
TAQA 2030 vs. Mubadala 2028 (& 2030*)
TAQA 4.875% 2030 yield (RHS)
TAQA 2030 vs. Abu Dhabi 2029 (& 2030**)
15
Source: Bloomberg as of 5 Sep 2021;
*
Starting 18 May 2020 as new on-the-run benchmark; **
starting 14 April 2020
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