Taqa Morocco Secures 6.6 Billion DH Funding, Sets Sights on Renewable Energy and Desalination
Taqa Morocco’s Significant Funding Round
Taqa Morocco, a key player in the energy sector, has successfully secured a substantial sum of 6.6 billion dirhams (DH) in funding. This significant financial achievement not only bolsters its capacity for future ventures but also allows it to explore new frontiers beyond its conventional sphere. The company plans to diversify its operations into areas such as seawater desalination, renewable energy, and green hydrogen production.
Impressive H1 2023 Results
The management at Taqa Morocco expressed their contentment over the company’s H1 2023 results, which showcased a substantial rise in its global availability rate from 92.7% as of 30th June 2022, to 94.9%. This progress was attributed to the successful execution of minor adjustments to Unit 5 following the maintenance plan and the positive outcomes from previous minor and major revisions. The company’s digitalization policy also played a crucial role in this growth, enabling it to transition from preventive to predictive maintenance.
Increased Revenue and New Business Opportunities
The company experienced a significant increase in its revenue by 26.1%, reaching 7.448 billion DH. This was due to the rise in international coal prices and an increase in power costs. The funding of 6.6 billion DH from a Moroccan banking consortium over a 19-year maturity period allowed the company to repay initial international project loans of 3.3 billion DH and lift restrictions on debt levels. This has opened doors for the creation of new business areas in Morocco.
Expansion into Seawater Desalination, Renewable Energy, and Green Hydrogen Production
With the lifting of restrictions and the availability of substantial funding, Taqa Morocco is now looking to venture into new business areas. These include seawater desalination, renewable energy-based power production, and green hydrogen production. The company is keen on capitalizing on its unique expertise for the development of these new projects identified in Morocco.
Fluctuations in Operating Result and Net Group Share Result
The operating result stood at 1.379 billion DH as of 30th June 2023, down from 1.47 billion DH as of 30th June 2022, due to the fluctuation in coal purchase prices. The Net Group Share Result also experienced an impact due to an exceptional exchange loss resulting from the USD/MAD parity during the first half, standing at 458 million DH as of 30th June 2023, compared to 605 million DH as of 30th June 2022.
Strengthened Capital Structure and Social Accounts
Taqa Morocco continues to benefit from a balanced capital structure, with equity capital of 7.333 billion DH as of 30th June 2023. The company’s equity capital and control of the working capital requirement, which stood at 636 million DH compared to 1.65 billion DH at the end of 2022, further consolidated Taqa Morocco’s funding capacities. On the other hand, the net social result amounted to 198 million DH as of 30th June 2023, down from 240 million DH as of 30th June 2022, due to the evolution of the international coal price index reference.
The recent developments at Taqa Morocco signify the company’s resilience and commitment to growth. With the successful funding round, the company is well-positioned to embark on new ventures and contribute significantly to Morocco’s energy sector. By diversifying its operations into areas like renewable energy and desalination, Taqa Morocco is not just expanding its portfolio but also aligning its growth with global sustainability goals.
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