Earnings release
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POWERING A THRIVING FUTURE Page 1 of 14 2025 MANAGEMENT’S DISCUSSION & ANALYSIS For the year ended 31 December 2025
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POWERING A THRIVING FUTURE Page 2 of 14 ABU DHABI NATIONAL ENERGY COMPANY PJSC (TAQA) MANAGEMENT’S DISCUSSION AND ANALYSIS 1. Health, Safety and Environment 2. Summary of Results 3. Results of Operations by Business 4. Capital Structure and Liquidity 5. Capital Expenditure This document should be read in conjunction with TAQA’s consolidated financial statements for the year ended 31 December 2025. Within the MD&A we use the terms “the Group”, “we”, and “our” to refer to TAQA. 1. Health, Safety and Environment (HSE) Year ended 31 December Transmission Distribution Generation (1) Water Solutions Oil & Gas (2,3) Group Total (2,3) HSE Overview 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Recordable injury rate (RIR) (4) (incident / million hrs) 0.04 0.17 0.27 0.10 0.62 0.20 0.07 0.31 1.86 1.13 0.39 0.31 Lost time injury (LTI) Number 1 2 3 2 2 1 1 4 5 4 12 13 Fatalities Number - - 3 1 - - - - - - 3 1 Reportable spills Number - - - - - - - - 11 8 11 8 Reportable spills Volume (litres) - - - - - - - - 21,372 2,456 21,372 2,456 1) Refers to TAQA operated assets only. 2) Excludes discontinued operations. 3) Q4 2024 RIR was updated based on a revised manhour calculation. 4) RIR includes all recordable injuries (e.g., fatalities, lost time injury, restricted w ork injury and medical treatment injury) “Safe” is our first value. We put safety above all else and HSE is a fundamental part of TAQA’s business. We apply our Commitment to Operational Excellence, TAQA’s HSE management system, to maintain safe, compliant and reliable activities and operations. All members of our work force are empowered with the responsibility and authority to speak up and stop unsafe work. Group RIR of 0.39 represents an increase from 0.31 in the previous year. Recordable injuries increased from 24 to 34, which included 3 fatalities and 12 lost time injuries. Manhours increased 11% reflecting increased activity across the Group. Regrettably, 3 fatal accidents occurred at our distribution company. These 3 accidents related to driving, lifting operations, and excavation activities . Each accident was subject to a rigorous independent investigation to establish root causes and identify lessons learnt, which were subsequently shared across the Group. Ongoing implementation of improvement actions identified to prevent reoccurrence are tracked to completion. In addition to increased site inspections in our dis tribution company, a n independent project site assurance programme has been established to review site conformance wi th requirements. Focus is directed at ensuring employees and contractors consistentl y maintain the highest levels of compliance with laws and regulations, and conform with the Group ’s safety policies, standards and rules. 11 reportable spills were recorded, an increase from 8 in the previous year. The tot al spill volume released was 21,372 litres, compared to 2,456 litres in 2024.
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POWERING A THRIVING FUTURE Page 3 of 14 Transmission Transmission RIR of 0.04 represents a decrease from 0.17 in the previous year , due to a reduction in recordable injuries from 3 to 1, comprising 1 lost time injury, and a 30% increase in manhours work ed. Key focus areas included contractor management and project safety management. Distribution Distribution RIR of 0.27 represents an increase from 0.10 in the previous year, due to an increase in recordable injuries from 3 to 9, which included 3 fatal accidents and 3 lost time injuries, and an 8% increase in manhours worked. Key focus areas included conformance with policies and standards, including the 12 Essential Safety Rules, safety leadership, supervision, contract or management and project safety management. Generation Generation RIR of 0.62 represents an increase from 0.20 in the previous year, due to an increase in recordable injuries from 1 to 3, which included 2 lost time injuries. Key focus areas inc luded contractor management, safety leadership, process safety, safe systems of work, and crisis an d emergency management. Water Solutions Water Solutions RIR of 0.07 at year end represents a decrease from 0.31 in the previous year, due to a decrease in recordable injuries from 4 to 1, which included 1 lost time injury, and a 14% increase in manhours worked. Key activities include an independent HSSE assurance review conducted to identify further opportunities to align with TAQA’s HSE management system and industry good practice. Key focus areas included HSE competencies, safety leadership, and contractor management. Oil & Gas (O&G) O&G RIR of 1.86 at year end represents an increase from 1.13 in the previous year, due to an increase in recordable injuries from 13 to 20, which included 5 lost time injuries, and a 7% decrease in manhours worked. Key focus areas included operational and process safety during ongoing changes in the asset profile and associated activities during asset decommissioning, wells plug and aba ndonment, asset transfer, and asset development, especially for activities delivered by our contracted workforce. Corporate Corporate experienced no recordable injuries during the year . Targeted programmes were supported to address the causes of the 3 fatal accidents, 12 lost time injuries and high potential incidents. Key focus areas included contractor management, safe systems of work, incident investigations, standards, HSE reporting and shared learning.
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POWERING A THRIVING FUTURE Page 4 of 14 2. Summary of Results Three months ended Twelve months ended 31-Dec 31-Dec 31-Dec 31-Dec (AED million, except where indicated) 2025 2024 2025 2024 Transmission network availability % 98.3 98.6 98.8 98.7 Generation global commercial availability (1) % 95.1 98.9 97.9 98.3 Water Solutions asset availability % 96.5 94.0 95.3 95.3 Oil & Gas average production (2) mboe/d 93.9 98.9 92.2 101.4 Revenue from external customers 12,138 13,333 54,798 54,781 EBITDA 4,623 4,094 20,659 21,004 Net Income (3) 1,387 750 7,466 7,068 Capital expenditure (4) 5,575 3,707 14,491 9,768 Free cash flow (5) (701) (764) 6,606 2,099 As at 31-Dec 31-Dec (AED million) 2025 2024 Total debt (6) 65,317 64,699 Regulated Asset Value (RAV): - Transmission 45,001 42,116 - Distribution 35,548 34,739 - Water Solutions 18,432 17,804 (1) Represents weighted average from continuing operations for all power and water producing assets based on plant capacity. (2) Includes working interest production from continuing operations in North Amer ica, UK, and Netherlands. (3) Net income above is the share attributable to common shareholders of T AQA. (4) Represents additions to Property, Plant, and Equipment, excluding right- of-use assets. (5) Represents cash flows from operations less cash flows used in investing activities. (6) Total debt includes accrued interest. Operational Highlights: • Transmission network availability for power & water reached 98.8%, marginally higher than 2024. • Generation global commercial availability slightly reduced to 97.9% from 98.3% in 2024. • Water Solutions asset availability was 95.3%, consistent with last year. • Oil & Gas production decreased to 92.2 mboe/d from 101.4 mboe/d in the prior year. This reduction is mainly due to the cessation of production in late 2024 of four UK assets as th e UK transitions to safe and efficient decommissioning. Financial Highlights: • Group revenues was AED 54.8 billion, broadly in line with the prior year. The utilities business continued to demonstrate resilience, offsetting the decline in revenues from the O&G business. The latter, in turn, was driven by lower commodity prices and continued declines in production volumes following the planned cessation of production at several UK North Sea fields. • EBITDA of AED 20.7 billion, underscoring the Group’s ability to generate consistent profitability and cash flows amid a year of significant transformation. EBITDA’s marginal decrease from AED 21 .0 billion in 2024 was primarily due to non-recurring, non-cash charges in the Generati on and O&G businesses.
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POWERING A THRIVING FUTURE Page 5 of 14 • Net income (TAQA Share) was AED 7.5 billion, up 5.6% compared to the prior year. • Capital expenditure grew to AED 14.5 billion, representing a 48.4 % increase as TAQA accelerated investment in power, water, and transmission infrastructure, including in the 1 GW Al Dhafra Thermal Power Plant and the execution of other projects. • Free cash flow amounted to AED 6.6 billion, up from AED 2.1 billion in 2024, primarily reflecti ng working capital movements , lower funding requirements from Masdar, partially offset by higher investment in Generation and Transmission assets within the UAE. • Total debt was AED 65.3 billion, up from AED 64.7 billion at the end of 2024 , with AED 3.9 billion of corporate term loan utilisation and AED 2.1 billion in project debt drawdowns, partiall y offset by the repayment of an AED 2.8 billion bond and AED 2.6 billion in scheduled project loan repayments. Strategic Highlights: 2025 was a year of focus and delivery, marked by transformative developments that reinforced TAQA’s integrated model and expanded its global footprint across power, water, and networks. By year-end, TAQA’s combined global generation capacity reached more than 70 GW, with renewables representing approximately 64% of the portfolio. The Group remains on track to ac hieve its targets of 150 GW of gross power capacity by 2030, with two-thirds from renewables. In the UAE, TAQA: • Progressed the world’s first round-the-clock renewables and storage project through its leading stake in Masdar. The project will integrate 5.2 GW of solar PV and 19 GWh of ba ttery storage to provide 1 GW of continuous clean power. This development broke ground in 20 25 and will be complemented by the 1 GW Al Dhafra Thermal Power Plant and significant grid investments through TAQA Transmission. These projects will amount to an approximately USD 10 billion (AED 36 billion) investment programme to meet rising power demand and support artifi cial intelligence and digital infrastructure in Abu Dhabi. • Executed landmark agreements with EGA, DUBAL Holding, and EWEC to accelerate industrial decarbonisation and expand clean energy development. As part of this, TAQA , alongside DUBAL Holding, will acquire EGA’s Al Taweelah power and water assets for USD 1.9 bi llion (approximately AED 7 billion), comprising 3.1 GW of power capacity and 6.25 million i mperial gallons per day (MIGD) of desalination capacity. • Achieved full commercial operations at the 2.4 GW Fujairah F3 power plant. • Signed agreements to reconfigure Shuweihat 1 from a cogeneration power and water desalination facility to a power plant only, providing up to 1.1 GW of flexible reserv e power supply for 15 years to support the increased integration of clean energy sources. Internationally, TAQA: • Advanced its growth strategy with the signing of an agreement to acquire GS Ini ma in a transaction valued at approximately USD 1.2 billion (approximately AED 4.4 bill ion). Upon completion, the acquisition will add 171 MIGD of desalination capacity and rein force the Group’s position as a global leader in the water sector. • Completed the acquisition and integration of Transmission Investment in the United King dom, signalling a strategic entry into the UK’s transmission market. • Achieved financial close of two major power projects in the Kingdom of Saudi Arabia – Rumah 2 and Al Nairyah 2 – which add 3.6 GW of highly efficient gas-fired capacity and combined
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POWERING A THRIVING FUTURE Page 6 of 14 represent a total investment of around USD 4 billion (approximately AED 14.7 billion). These additions increase TAQA’s portfolio in the Kingdom to more than 5 GW. • Signed agreements with local stakeholders for large-scale integrated power, water, and transmission projects in the Kingdom of Morocco. These represent a potential investment of approximately USD 14 billion (AED 52 billion) in the Kingdom to support i ts energy transition and water security. • Acquired a 40% stake in the 875 MW Talimarjan power plant and signed new agr eements through TAQA Water Solutions for major water projects in Uzbekistan. As part of its commitment to responsible late- life asset management, TAQA’s O&G business reached a major decommissioning milestone in 2025 with the safe removal of the Eider Alpha offshore platform’s topside structure in the UK’s Northern North Sea. In the Netherlands, TAQA supported Europe’s first carbon dioxide storage facility through the transfer of its P18-A platform to Porthos. TAQA streamlined its portfolio with the divestment of the Group’s interest in the Lakefield wind project in the United States and its interest in a 250 MW lignite-fired power plant through the sale of TAQA Neyveli in India. Masdar underpinned TAQA’s renewable growth. In addition to progressing the 24/7 solar -plus-storage project, Masdar expanded its global footprint through strategic acquisitions and partne rships across Europe, Asia, and the Middle East.
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POWERING A THRIVING FUTURE Page 7 of 14 3. Results of Operations by Business Year ended Consolidated Income Statement Transmission Distribution Generation Water Solutions Oil & Gas Corp. & Elimination Group Total (AED millions) 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Revenue External 1,116 1,132 34,961 33,359 11,985 12,034 2,526 2,479 4,210 5,777 - - 54,798 54,781 Intra-Segment 5,145 5,141 178 170 171 162 135 143 - - (5,629) (5,616) - - Revenue total 6,261 6,273 35,139 33,529 12,156 12,196 2,661 2,622 4,210 5,777 (5,629) (5,616) 54,798 54,781 Operating expenses (926) (756) (29,829) (28,492) (4,738) (4,598) (941) (917) (1,628) (3,003) 5,619 5,616 (32,443) (32,150) G&A expenses (448) (468) (802) (906) (514) (458) (199) (121) (153) (218) (336) (680) (2,452) (2,851) Net impairment losses on financial and contract assets - (10) 8 10 (2) (436) 1 - 7 - - 22 14 (414) Share of results of associates and JVs (115) - - - 426 440 - - - - 8 (56) 319 384 Other income / (expenses) 128 118 131 162 229 222 4 (3) 18 86 68 (37) 578 548 FX gains / (losses) (2) - - - 112 (42) (1) - 28 19 (148) (24) (11) (47) Dividend income - - - - - - - - - - 807 612 807 612 Impairment of non-financial assets - - - - (841) - - - (142) - - - (983) - Profit from discontinued operations - - - - 32 75 - - - 66 - - 32 141 EBITDA 4,898 5,157 4,647 4,303 6,860 7,399 1,525 1,581 2,340 2,727 389 (163) 20,659 21,004 DD&A expenses (1,578) (1,570) (1,944) (1,954) (4,201) (4,490) (731) (753) (837) (804) (15) 18 (9,306) (9,553) Finance costs (22) (1) (4) (2) (1,372) (1,568) (106) (127) (341) (440) (1,177) (939) (3,022) (3,077) Interest income 64 66 32 98 178 183 24 21 21 161 57 11 376 540 Tax expense (93) (225) (317) (145) (371) (476) (42) (64) (273) (578) (49) (93) (1,145) (1,581) Total profit / (loss) 3,269 3,427 2,414 2,300 1,094 1,048 670 658 910 1,066 (795) (1,166) 7,562 7,333 Non-controlling interest - - - - (64) (233) (32) (32) - - - - (96) (265) Net profit / (loss) (TAQA share) 3,269 3,427 2,414 2,300 1,030 815 638 626 910 1,066 (795) (1,166) 7,466 7,068
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POWERING A THRIVING FUTURE Page 8 of 14 As at Consolidated Balance Sheet Transmission Distribution Generation Water Solutions Oil & Gas Corp. & Elimination Group Total (AED millions) 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Property, plant and equipment 47,317 42,167 43,854 43,359 26,647 26,318 19,580 18,841 5,288 5,347 (175) (32) 142,511 136,000 Operating financial assets - - - - 7,387 7,821 - - - - - - 7,387 7,821 Investing in associates, joint ventures and related balances 1,215 1,160 16,773 14,657 - - - - - 208 17,988 16,025 Intangible assets 276 - - - 7,429 9,473 - 1 79 68 (1) 13,469 12,667 14,297 Investments carried at FVOCI - - 4,884 4,755 - - - - - - 13,623 48 13,623 13,469 Deferred tax assets - - - - 13 10 - - 4,638 5,558 - - 4,651 5,616 Other assets 530 894 3,974 4,470 10,719 9,801 609 360 2,136 1,876 2,978 6,184 20,946 23,585 Assets classified as held for sale - - - 6 - - - - - 136 - 142 - Segmental Assets 49,338 44,221 52,712 52,584 68,974 68,080 20,189 19,202 12,141 12,849 16,561 19,877 219,915 216,813 Segmental Liabilities 7,063 5,575 15,566 14,079 35,186 35,636 6,923 6,531 12,372 14,412 35,153 35,756 112,253 111,989 Total Equity 42,275 38,646 37,146 38,505 33,788 32,444 13,266 12,671 (231) (1,563) (18,592) (15,879) 107,662 104,824
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POWERING A THRIVING FUTURE Page 9 of 14 Transmission Transmission reported a net profit of AED 3,2 69 million, a decrease of AED 158 million compared to the prior year. The decline was mainly attributable to one-off and non-recurring items. Revenue, which primarily comprises intra-segment revenue from Distribution, was broadly con sistent with the prior year. Operating expenses increased by AED 170 million, reflecting costs related to work force and transformation initiatives, the development of special projects, and the integration of Trans mission Investment to support the expansion of non-regulated activities outside the UAE. Tax expense decreased by AED 132 million compared to the prior year, primarily du e to Transmission being allocated a higher share of tax losses within the tax group. Distribution Distribution reported a net profit of AED 2, 414 million, representing an increase of AED 114 million compared to the prior year. Revenue increased by AED 1,610 million to AED 35,139 million, due to hi gher bulk supply tariff (BST) pass-through costs and other adjustments, including the impact of inflation. Operating expenses increased by AED 1,337 million, largely reflecting higher BST costs and costs related to workforce and transformation initiatives . These increases were partially offset by a greater allocation of staff costs to direct operations, resulting in a reduction in G&A expenses. Tax expense increased by AED 172 million compared to the prior year, primarily due to Distribution being allocated a lower share of tax losses within the tax group. Generation Generation reported a net profit (TAQA share) of AED 1,030 million, AED 215 million higher than the previous year. Revenue was broadly in line with 2024, while operating expenses rose by AED 140 million to AED 4,738 million, mainly due to the timing of maintenance activities and higher pass-through fuel cos ts. The share of results from associates and joint ventures amounted to AED 426 milli on, broadly in line with 2024. Foreign exchange gains totaled AED 112 million, an increase of AED 1 54 million year-on-year, driven by the appreciation of the Euro and Moroccan Dirham. A non-cash impairment charge of AED 841 million was recognised on contract related intangible assets, reflecting a higher assumed cost of capital to discount future cash flows. In September 2025, TAQA entered into definitive agreements with MEIL Energy P rivate Limited, an affiliate of Megha Engineering & Infrastructures Limited (MEIL), for the sale of its entire 100% equity interest in TAQA Neyveli Power Private Limited (“TAQA Neyveli”) . As a result, net income included profit from discontinued operations of AED 32 million, which is AED 43 million lower than the comparable year. On 30 October 2025, the Group closed the transaction. Depreciation, depletion and amortisation (DD&A) decreased by AED 2 89 million, primarily following a revision of the estimated useful life of the Shuweihat S1 power plant, in line wi th a 15-year extension agreement signed with Emirates Water and Electricity Company (EWEC).
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POWERING A THRIVING FUTURE Page 10 of 14 Finance costs decreased by AED 196 million, primarily reflecting the sched uled repayment of term loans. Tax expense was AED 105 million lower, mainly due to deferred tax movements aris ing from the impairment of contract related intangible assets. Water Solutions Water Solutions reported a net profit (TAQA share) of AED 638 million, an increase of AED 12 million compared to the prior year. Revenue increased to AED 2,661 million, up AED 39 million, reflecting the regulated nature of the business. This was offset by an AED 24 million rise in operating expenses. G&A expenses increased by AED 78 million, mainly due to costs linked to transformati on initiatives. Depreciation, depletion and amortisation (DD&A) decreased following a technical reassessment and extension of asset useful lives. Oil & Gas (O&G) Oil & Gas (O&G) contributed a net profit of AED 910 million, a decreas e of AED 156 million compared to the prior year, primarily reflecting reduced production volumes. Revenue declined to AED 4,210 million, down AED 1, 567 million year- on-year. Average realised oil prices decreased to USD 63.91/bbl from USD 76.74/bbl in 2024, while average realise d gas prices decreased to USD 2.70/mmbtu from USD 2.75/mmbtu. Production volumes averaged 9 2.2 mboe/d, compared to 101.4 mboe/d in 2024, reflecting the planned cessation of produc tion (CoP) at several North Sea fields in line with TAQA UK’s decommissioning programme. Four assets – Tern, Eider, North Cormorant and Cormorant Alpha – reached CoP in late 2024, marking the end of TAQA’s hydrocarbon production in the Northern North Sea. Operating expenses decreased to AED 1,628 million, a reduction of AED 1,375 milli on, mainly driven by revisions to decommissioning estimates, lower repairs and maintenance costs and other operating expenses following the Northern North Sea cessations. A non-cash impairment charge of AED 142 million was recognised on our Canadi an O&G assets, reflecting a reduction in reserve valuations. General and administrative expenses fell by AED 65 million, reflecting higher cost recoveries from joint venture partners and cost rationalisation in UK operations. Finance costs decreased by AED 99 million, primarily due to lower asset retirement obligation accretion, reflecting the reduced provision value as UK decommissioning progresses, and lower interest on lease liabilities. Interest income was lower by AED 140 million due to lower cash balances held by the business. Tax expense decreased by AED 305 million compared to the prior year, mainly due to lower profits driven by reduced oil prices and production in the UK, as well as the phasing of tax loss utilization, and movements in deferred taxes associated with the revision in ARO liability i n the UK and impairment of O&G assets in Canada.
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POWERING A THRIVING FUTURE Page 11 of 14 Corporate G&A expenses were AED 344 million lower primarily due to higher allocation of costs to the operating segments. The strengthening of the Euro resulted in a foreign exchange loss of AED 148 million, driven by currency movements on Euro-denominated balances within the Group. Dividend income increased by AED 195 million, primarily reflecting changes to the dividend policy of ADNOC Gas, which transitioned to a quarterly dividend payout during the year. Finance costs increased by AED 2 38 million, largely driven by an increase in overall debt levels to support the Group’s strategic initiatives.
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POWERING A THRIVING FUTURE Page 12 of 14 4. Capital Structure and Liquidity As at Consolidated Position 31-Dec 31-Dec (AED million, except where indicated) 2025 2024 Total assets 219,915 216,813 Total equity 107,662 104,824 Total debt (1) 65,317 64,699 Net debt-to-capital ratio (2) 35% 35% Unused portion of credit facilities 19,726 13,397 Net cash and cash equivalents 6,660 8,382 Total available liquidity 26,386 21,779 (1) Total debt includes accrued interest (2) ‘Net debt’ divided by ‘Total equity’ plus ‘Net debt’ where ‘Net debt’ is ‘Total debt’ less ‘ Net cash and cash equivalents’ Capital Structure TAQA’s capital structure is comprised of 35% net debt based on the consolidated statement of financial position values as at 31 December 2025 and includes fair value adjustments. The Group’s external sources of funding include corporate bonds, term loans and its revolving credit facility (RCF), which have historically been used to finance capital expendi ture, investments and acquisitions across the Group. The Generation subsidiaries are generally funded through project de bt, including non-recourse bank loans, project bonds and Islamic financing. The Group continues to monitor the total debt position and refinancing options available to ensure the debt mix and cost of debt is at an optimal level. Please refer to the ‘Maturity Profile’ section below for updates on recent debt issuances. Interest rates on the Group’s project debt, bonds and loans are largely fixed, either co ntractually or through interest rate hedging arrangements. The main exception is TAQA’s revolving credit facility
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POWERING A THRIVING FUTURE Page 13 of 14 (RCF), and more recently the AED 8.5 billion corporate term loan facility, both of which attract floating market rates and are therefore exposed to movements in the Secured Overnight Financing Rat e (SOFR) and Emirates Interbank Offered Rate (EIBOR), respectively. As the Group’s medium- and long- term bonds and loans mature, it may be required to refinance such debt at prevailing mar ket rates or utilise other available liquidity. Accordingly, TAQA is partially exposed to interest rate risk. As at 31 December 2025, after considering the effect of interest rate swaps and embedded derivatives, approximately 94% of the Group’s borrowings attract a fixed rate of interest (December 2024: 99%) and the Group’s overall cost of debt averaged 4.8% (December 2024: 4.8%) Liquidity The Group’s total available liquidity was AED 26.4 billion, an increase of of AED 4.6 billion from the end of 2024. Total available liquidity is made up of AED 19.7 billion unused part of available credit facilities and AED 6.7 billion net cash and cash equivalents. The Group maintains access to funding through its AED 12.9 billion (USD 3.5 bill ion) multicurrency revolving credit facility (RCF), arranged with a syndicate of 20 banks. As at 31 December 2025, the facility remained fully undrawn. In August 2025, the Group further strengthened its liquidity position by securing a new AED 8.5 billion corporate term loan facility. The loan is structured as a two-year, AED-denominated floating-rate facility, with an option to extend for an additional year. Drawdowns are being implemented in phases, of which AED 3.9 billion had been utilised as at 31 December 2025. As at 3 1 December 2025, 10.3% (AED 6.8 billion) of the Group’s total debt is classified as current, compared to 15.0% (AED 9.7 billion) as at 31 December 2024, based on the carry ing value of borrowings and accrued interest. Fujairah Asia Power Company PJSC (FAPCO) was in technical default as at 31 December 2024 for failing to assign new insurances and reinsurances to the Security Trustees, as required under the Common Terms Agreement and the Commercial Mortgage. Although FAPCO fully remedied the default by January 2025 and obtained a waiver from the Global Facility Agent, the existence of the default at the 2024 year-end necessitated the recl assification of AED 3.1 billion of non-current debt to current liabilities in the statement of financial position. Following the resolution of the technical default, the reclassified loan amounts have been reinstated in line with their original contractual maturities. Maturity Profile As at 31 December 2025, the Group’s total debt amounted to AED 65.3 billion, reflecting a net increase of AED 0.6 billion compared to AED 64.7 billion as at 31 December 2024. This net increase resulted from AED 3.9 billion of corporate term loan utilisation and A ED 2.1 billion in project debt drawdowns, partially offset by the repayment of an AED 2.8 billion bond and AED 2.6 billion in scheduled project loan repayments.
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POWERING A THRIVING FUTURE Page 14 of 14 The Group’s financial liabilities repayment schedule as at 31 December 2025, based on contractual undiscounted payments, is as follows: 5. Capital Expenditure Year ended 31 December AED million Transmission Distribution Generation Water Solutions Oil & Gas Corp. & Eliminations Group Total 2025 6,719 2,431 3,212 1,202 927 - 14,491 2024 2,752 2,898 2,276 785 1,057 - 9,768 The Group’s total capital expenditure (additions to Property, Plant, and Equipment, excluding right-of- use assets) amounted to AED 14,491 million, a 48% increase compared to the prior year. Capital expenditure in the Transmission segment increased by AED 3,967 compared to th e prior year, primarily driven by execution of key special projects and the phasing of busines s-as-usual network enhancements and upgrades. Capital expenditure in the Distribution segment declined by AED 467 million, primarily reflecting a prior- year transfer of inventory into property, plant and equipment and a lower volume of mega development projects transferred during the year. Generation capital expenditure increased by AED 936 million, primarily driven by the development of the 1 GW Al Dhafra Thermal project , Mirfa 2 RO, Shuweihat 4 RO desalination plants as well as the extension of the Shuweihat S1 Power Plant. Water Solutions’ capital expenditure increased by AED 4 17 million, with total additions of AED 1,202 million, mainly driven by restoration works, asset enhancements, network rehabilita tion, and other ongoing projects. O&G capital expenditure decreased by AED 130 million, reflecting the transition to decommissioning in the UK and lower investment on drilling and completions in North America. Jasim Husain Thabet Stephen Ridlington Group Chief Executive Officer & Managing Director Chief Financial Officer 11 February 2026