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.
