ACWA Power H1 net profit rises 26% to SAR684m

ACWA Power has announced financial results for the six-month period that ended on June 30.

The company’s net profit – attributable to equity holders of the parent – increased by 26 per cent versus the H1 2022 and reached SAR684m.

According to the company, financial expenses were higher mainly on account of the new debt issuance for growth and the continuous increase in market rates. However, this was offset by a rise in other income and favourable deferred tax movement compared to the same period in 2022.

“The results of H1 2023 are a reflection of our privileged position of having a solid business model, excellent talent and a passion for making a difference,” said Marco Arcelli, chief executive officer, ACWA Power.

“Rather than rest on our laurels, this success has driven us to even greater ambitions to being the world’s best in the three core segments of renewable energy, water and green fuels by the end of the decade. Now, our effort, people and finances will focus on making this dream a reality,” he added.

Abdulhameed Al Muhaidib, the company’s chief financial officer, ACWA Power, said: “ACWA Power’s diversified business model continues to present solid future growth with more projects coming online. It is also encouraging to see the progressive operational stability following some unusually extended plant outages of last year.”

He also assured that, “our parent cash flow and balance sheet continue to remain healthy to support our immediate and visible growth pipeline”.

Operating income – before impairment, loss and other expenses – for the six-month period stood at SAR1,289m.

Higher power generation by plants that experienced extended shutdowns last year continued delivering better performance with mostly stabilised operations. This, combined with new facilities coming online and beginning to contribute to the company’s results, led to higher income including from operations and maintenance (O&M) fees.

ACWA Power Q2 performance

In Q2, in addition to two new financial closes – one PV project in Egypt and one Wind project in Uzbekistan, ACWA Power has also seen the successful closure of the $6.3bn Neom Green Hydrogen Project’s financing, following which the project company, Neom Green Hydrogen Company, issued the final notice to proceed to Air Products, the EPC contractor of the project.

In the same period, the company has signed three power purchase agreements as part of the Public Investment Fund’s (PIF) renewable pipeline, adding 4.55GW of solar power capacity on its portfolio.

With this, ACWA Power’s total aggregate power capacity of the operational, under construction and in advanced development projects exceeds 50GW, with over 23GW, or 46 per cent of the total, in renewables, which is very close to the company’s 2030 target of a 50/50 portfolio between renewables and flexible generation.

The company has also signed a hydrogen purchase agreement and a complementary wind power purchase agreement in Uzbekistan to constitute ACWA Power’s second green hydrogen project.

During this period, ACWA Power received the commercial operation certificate for Group 2 of Taweelah RO Desalination Company located in Taweelah, Abu Dhabi, from Emirates Water and Electricity Company (EWEC). It now supplies 183 million gallons per day to the Abu Dhabi network.

Meanwhile, the Jubail 3A IWP (Jazlah Plant), a 600,000 m³/day independent water project in Al Jubail, Saudi Arabia, a large-scale integrated water desalination-solar PV project, was also inaugurated during this period.

On July 12, the company fully paid an annual dividend of SAR606,812,775.07 (SAR 0.83 per share) for 2022.

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