Saudi Arabia's ACWA Power Begins Commercial Operations at Hassyan Power Complex

Model of the Hassyan Power Complex in Dubai. (ACWA power)
Model of the Hassyan Power Complex in Dubai. (ACWA power)
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Saudi Arabia's ACWA Power Begins Commercial Operations at Hassyan Power Complex

Model of the Hassyan Power Complex in Dubai. (ACWA power)
Model of the Hassyan Power Complex in Dubai. (ACWA power)

The Saudi company ACWA Power announced on Sunday the start of commercial operation of the Hassyan Power Complex, which has a capacity of 2,400 megawatts.

In a disclosure published on the Saudi Stock Exchange (Tadawul), the company received the commercial operation certificate from the Dubai Electricity and Water Authority (DEWA).

The last 600 MW power unit followed three other 600 MW units that had previously begun commercial operations.

The Hassyan Power Complex project in Dubai is one of the largest power stations in the region.

The project comprises four GE/Alstom 600 MW power units gross of ultra-supercritical boilers, steam turbines, and generators.

The plant was initially designed to operate on coal, but subsequently, based on a decision by DEWA, the off-taker, with the blessing of the Chairman of the Dubai Supreme Council of Energy on 2nd February 2022, it was switched to operate on natural gas.

It will avoid approximately 30 million tons of CO2 emissions by 2030.

The project specifications require the plant to be constructed carbon capture ready, meaning that the installation of carbon capture equipment in the future should be without the need for any modification to the plant or hinder the plant availability.

ACWA Power owns 26.95 percent of the Hassyan Power Complex.

The company said that the financial impact of operating the project at total operational capacity is expected to become clear starting from the last quarter of this year.



Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.