TAQA Morocco Reports 5.8% Net Profit Growth to MAD 462M in H1 2026 Despite Revenue Decline

TAQA Morocco has demonstrated resilient financial performance in the first half of 2026, achieving a group net profit of MAD 462 million, representing a 5.8% increase compared to the same period in 2025. This growth occurred despite operational challenges and currency headwinds that impacted the company's top line.

Financial Performance Overview

The energy company's consolidated revenue reached MAD 5.088 billion during the six-month period, marking a 5.4% decline year-over-year. Management attributed this revenue contraction to several factors: a minor scheduled revision of Unit 3, programmed inspections across other production units, and unfavorable movements in the USD/MAD exchange rate.

Despite the revenue decline, operational efficiency improvements enabled EBITDA to grow 0.7% to MAD 1.660 billion. Operating profit stood at MAD 1.249 billion, marginally below the prior year's MAD 1.254 billion, representing a modest 0.4% decrease. Significantly, financial results improved by MAD 62 million, with financial expenses declining from negative MAD 217 million to negative MAD 155 million.

Consolidated net profit reached MAD 601 million, up 4.1% year-over-year, of which MAD 139 million was attributable to minority interests. On a standalone basis, TAQA Morocco posted revenue of MAD 3.081 billion versus MAD 3.039 billion in H1 2025, with net profit climbing to MAD 200 million from MAD 161 million.

Operational Metrics and Production

The operational availability rate for Units 1 through 6 stood at 86.6%, down from 91.7% at the end of June 2025. This decrease reflected a planned 25-day shutdown for the minor revision of Unit 3 during the semester. Total electricity production amounted to 6.684 GWh for the period.

Investment and Debt Management

TAQA Morocco significantly accelerated its capital deployment, with investments reaching MAD 515 million compared to MAD 210 million in the prior-year period. These investments focused primarily on low-carbon development projects, the Unit 3 revision, and operational and maintenance initiatives across other units.

The company's balance sheet strengthened considerably, with consolidated net debt declining 10.1% to MAD 4.621 billion. This reduction resulted from strong cash flow generation combined with continued debt repayments. The gearing ratio improved to 36% from 38% at June 30, 2025, reflecting enhanced financial flexibility.

Strategic Transformation and Diversification

TAQA Morocco is executing a comprehensive strategic evolution centered on four key pillars: water desalination, renewable energy, natural gas, and low-carbon water and energy transmission. Following a strategic partnership announced on May 19, 2025, and the establishment of dedicated subsidiaries, the Supervisory Board approved a reorganization plan on July 17, 2026.

This restructuring aims to progressively transform TAQA Morocco into a holding company managing a diversified and integrated portfolio. By 2030, the group projects a total capacity of 8.6 GW, including 4.8 GW from renewable energy sources, alongside substantial capabilities in water desalination and transmission infrastructure.

Outlook and Upcoming Events

Management expressed confidence entering the second half of 2026 and reaffirmed its commitment to deploying strategic projects across its diversified portfolio. The company has scheduled a conference for analysts and investors on Thursday, September 17, 2026, at 2:30 PM to discuss the semi-annual results and provide operational updates.

The financial statements, approved by the Management Board on September 8 under the chairmanship of Abdelmajid Iraqui Houssaini, include consolidated accounts for JLEC 5&6 covering the period from October 1, 2025, to March 31, 2026, in accordance with the group's consolidation methods.