Taqa Morocco posts 17% profit drop in first half of 2025

Friday 19 September 2025 - 08:50

By: Dakir Madiha

Taqa Morocco posts 17% profit drop in first half of 2025

Taqa Morocco, the operator of the Jorf Lasfar coal-fired power plant, has reported a 17% drop in net profit for the first half (H1) of 2025. Net profit fell to MAD 437 million ($48.7 million), down from MAD 526 million ($58.6 million) in the same period last year. The decrease was largely attributed to lower operating income and adverse external factors, including falling coal prices and an unfavorable exchange rate.

Revenue and operating income impacted by external factors

The company’s consolidated revenue for H1 2025 decreased by 4.8%, dropping to MAD 5.3 billion ($590.6 million) from MAD 5.65 billion ($629 million) in H1 2024. The decline was driven primarily by lower energy costs, as international coal prices fell from $113 to $108 per ton, and the USD/MAD exchange rate worked against the company’s earnings.

Operating income also saw a decline, reaching MAD 1.25 billion ($139.3 million), compared to MAD 1.41 billion ($157.2 million) in the previous year. Planned maintenance activities, including a minor revision of Unit 6, temporarily reduced operational efficiency and contributed to the decline.

Operational performance and investments

Despite the challenges, Taqa Morocco achieved a high availability rate of 91.7% across its units in H1 2025, slightly lower than the 94.1% recorded in the same period last year. The company’s financial structure showed improvement, with the gearing ratio declining to 38% as of June 30, 2025, compared to 44% a year earlier.

Investments surged significantly, totaling MAD 210 million ($23.4 million) in H1 2025, up from MAD 71 million ($7.91 million) in H1 2024. These funds were allocated to the acquisition of Taqa Morocco Wind Corporation (TMWC), maintenance of Unit 6, and projects related to the operation and upkeep of the company’s infrastructure.

Focus on sustainability and energy transition

Looking forward, Taqa Morocco is strengthening its strategic focus on sustainable energy solutions. The company aims to diversify its activities by expanding into low-carbon initiatives, including renewable energy, seawater desalination, natural gas, and low-carbon energy and water transportation. These efforts align with Morocco’s broader energy transition goals and underline Taqa Morocco’s commitment to environmental sustainability.