ACWA Power reports 78% increase in Q1 2023 net profit, expands leadership team for growth and expansion – EQ Mag

The publicly listed company on the Tadawul stock exchange (ACWA Power: 2082) reported a consolidated net profit of SAR270 million, a 78% increase from the same period last year.

ACWA Power, a Saudi Arabian developer, investor, and operator of power generation, water desalination, and green hydrogen plants worldwide, announced its financial results for the first quarter of 2023.

The publicly listed company on the Tadawul stock exchange (ACWA Power: 2082) reported a consolidated net profit of SAR270 million, a 78% increase from the same period last year.

Operating income before impairment loss and other expenses for the quarter ending 31 March 2023 increased by 7% and reached SAR559 million.

The contribution from both new and existing projects increased by SAR175 million, while lower development and construction management services fees, higher corporate general admin expenses, and other income recognised in 1Q2022 partially offset the increase. Earnings per share for the period was SAR0.37.

ACWA Power’s leadership team has been expanded to drive the company’s growth and expansion.

Raad Al-Saady was appointed as Vice Chairman and Managing Director, and Marco Arcelli was appointed as Chief Executive Officer, succeeding Paddy Padmanathan.

ACWA Power Chairman Mohammad Abunayyan said, “I am confident that our expanded leadership team will lead us into an exciting new phase of growth, overseeing our regional and global expansion efforts, and accelerating our efforts to drive the transition worldwide.”

The company aims to become a global leader in energy transition and contribute to the economic growth of countries where it operates through affordable, secure, and sustainable energy, water, and green fuels.

During the quarter, ACWA Power completed the issuance of the second tranche under its SAR5 billion Sukuk Issuance programme, raising SAR1,800 million at a record pricing in double digits in the SAR corporate market since 2017, which was oversubscribed 2.24 times.

The company achieved significant milestones on the business development landscape, signing three power purchase agreements (PPA) with the National Electric grid of Uzbekistan for three solar PV plants and Battery Energy Storage Systems (BESS) with a total combined capacity of 1,500 MWH.

ACWA Power also signed a water purchase agreement (WPA) with the Saudi Water Partnership Company for the development, construction, operation and ownership of a water desalination plant using reverse osmosis technology with a capacity of up to 600,000 m³/day and associated infrastructure and facilities, including potable water special facilities for tanks with a capacity of 1,200,000 m³, to be located south of Rabigh city, on the coast of the Red Sea in the Western Province of the Kingdom of Saudi Arabia.

During the quarter, two dry financial closes were achieved, including a SAR24 billion financing for the NEOM green hydrogen project, the world’s largest at-scale green hydrogen production project jointly owned by ACWA Power, Air Products and NEOM, which is under construction in NEOM, Saudi Arabia.

Additionally, three projects—Jazan Integrated Gasification Combined Cycle Project’s Group 2 assets, Noor Energy 1’s 300MW two units, and Jazlah Independent Water Plant—achieved commercial operations in this quarter, beginning to contribute to the company’s income and cash streams.

ACWA Power’s Board of Directors approved a dividend payment of SAR606.8 million for the year 2022, payable during 2023, subject to shareholders’ approval at the upcoming General Assembly Meeting.

Abdulhameed Al Muhaidib, Chief Financial Officer of ACWA Power, said, “ACWA Power’s strong financial results reinforce our healthy balance sheet and ensure we are well positioned to capitalize on the ambitious growth ahead of us. We remain committed to delivering sustainable value to our shareholders by optimizing existing projects and achieving successful financial outcomes.”

ACWA Power’s financial results show the company’s steady growth and its strong position to pursue its ambitious goals for sustainable value delivery.

Source: utilities-me