Saudi’s ACWA Power sees net profit surge 36% in H1 2024

Saudi-listed ACWA Power reported its financial results for H1 2024. The clean energy company’s net profit attributable to equity holders surged by 36 per cent to SAR927m, an increase of SAR243m compared to the same period in 2023.

Operating income before impairment losses and other expenses rose to SAR1.38bn, up by SAR100m.

A significant portion of this income included a SAR402m gain from the partial divestment of its Bash and Dzhankeldy wind projects in Uzbekistan.

ACWA Power portfolio growth

ACWA Power continued its expansion during the period, adding a record 10.5GW of renewable power generation capacity to its portfolio.

In May, the company signed a power purchase agreement (PPA) with Uzbekistan’s National Electric Grid for the 5GW Aral Wind with BESS project, the largest wind farm in Central Asia.

In June, ACWA Power secured three PPAs for large-scale PV solar projects in Saudi Arabia, totalling SAR12.3bn in investment and 5.5GW in capacity under the fourth round of the ACWA Power-Public Investment Fund (PIF) Strategic Framework Agreement.

“Our financial results renew our confidence in pursuing our ambitious growth agenda and allow us to accelerate our mission of delivering low-cost and responsible water and power globally,” said Marco Arcelli, CEO of ACWA Power.

Chief financial officer Abdulhameed Al Muhaidib added, “Despite the operational challenges witnessed in a few assets, the diversity of our asset base as well as our business model has allowed us to grow our operating and net profit in the first six months of this year.”

ACWA Power also achieved financial close on three major projects: the Taiba and Qassim Combined Cycle Gas Turbine (CCGT) projects in Saudi Arabia, and the Hassyan IWP project in the UAE, with a total investment of SAR18bn.

The company reported several projects reaching full or partial operation.

It shared that the 1,500MW Sudair Solar PV in Saudi Arabia, Kom Ombo 200MW solar PV in Egypt, and the 909m³/day Al Taweelah water desalination plant in the UAE are now fully operational.

The 1,500MW Sirdarya CCGT in Uzbekistan is currently generating 918MW, with full capacity expected by year-end. Additionally, Shuaa Energy 3, in which ACWA Power holds a 24 per cent stake, received commercial operation certification for the 300MW Phase C of the Mohammad Bin Rashid Al Maktoum Solar Park in Dubai.

Read: ACWA Power completes $533m financing for Tashkent energy project

Raising capital

On June 10, ACWA Power’s board of directors recommended increasing the company’s capital by SAR7.12bn through a ‘Rights Issue’.

This move aims to support the company’s strategy of tripling its assets under management to $250bn by 2030, driven by an expected increase in annual equity commitments to around $2.5bn between 2024 and 2030.