Saudi Acwa Power Reports $182.4 Mln Profit in H1

The largest wind turbine in Central Asia that ACWA Power succeeded in installing. (The company's website)
The largest wind turbine in Central Asia that ACWA Power succeeded in installing. (The company's website)
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Saudi Acwa Power Reports $182.4 Mln Profit in H1

The largest wind turbine in Central Asia that ACWA Power succeeded in installing. (The company's website)
The largest wind turbine in Central Asia that ACWA Power succeeded in installing. (The company's website)

Saudi-based Acwa Power has announced robust results for the first half recording a net profit of SAR 684 million ($182.4 million), up 26% over last year.

Financial expenses were higher mainly on account of the new debt issuance for growth and the continuous increase in market rates. This was more than offset by increase in other income and favorable deferred tax movement as against the same period last year.

"The results of the first half of the year 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.

"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.

On the results, Chief Financial Officer Abdulhameed Al Muhaidib 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, “Our parent cash flow and balance sheet continue to remain healthy to support our immediate and visible growth pipeline.”

Announcing its financial results for the six-month period ending June 30, 2023, Acwa Power said its operating income, before impairment, loss and other expenses, stood at SAR 1.289 billion ($343.7 million).

Higher power generation by plants that experienced extended shutdowns last year continued delivering better performance with mostly stabilized 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.

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 $6.3 billion 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 to its portfolio.

With this, Acwa Power’s total aggregate power capacity of the operational, under construction and advanced development projects, exceeds 50GW, with over 23GW, or 46% 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.

IN mid-July 2023, the Company fully paid an annual dividend of SAR 606.8 million ($161.8 million) i.e. SAR 0.83 per share for 2022.



Dollar Hobbled by Economic Worries; Euro Remains in Favor

US dollar drifted within a tight range on Monday, pressured by lower Treasury yields - Reuters
US dollar drifted within a tight range on Monday, pressured by lower Treasury yields - Reuters
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Dollar Hobbled by Economic Worries; Euro Remains in Favor

US dollar drifted within a tight range on Monday, pressured by lower Treasury yields - Reuters
US dollar drifted within a tight range on Monday, pressured by lower Treasury yields - Reuters

The dollar hovered near a five-month low against major peers on Monday, bruised by President Donald Trump's erratic trade policies and soft economic data, at a time when other currencies, including the euro, benefit from domestic drivers.

The euro was last at $1.0905, up 0.2% on the day, and heading back towards the $1.0947 it hit last week, its highest since October 11.

The Japanese yen was also marginally stronger on the day at 148.48 per dollar, again after hitting its strongest in five months last week at 146.5 to the dollar.

That left the dollar index, which measures the US currency against its six major counterparts, at 103.5, just off its five-month trough of 103.21 reached last Tuesday, Reuters reported.

Currency markets have undergone a shift in recent months, as traders re-evaluate their initial expectations that Trump's economic policies would both support the dollar and cause other currencies to weaken.

In fact the reverse has happened, and analysts at Societe Generale said on Monday that they had changed their currency forecasts "to reflect Germany's planned fiscal changes, the US economy's self-inflicted (relative) fragility, and Japan’s escape from deflation".

They see the euro at $1.13 by year-end and the yen at 139 per dollar.