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ACWA Power: Necessary Studies Underway for Green Hydrogen Project in Egypt

Hydrogen is an important source of clean energy to reduce greenhouse gas emissions and mitigate the effects of climate change. (Reuters)
Hydrogen is an important source of clean energy to reduce greenhouse gas emissions and mitigate the effects of climate change. (Reuters)
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ACWA Power: Necessary Studies Underway for Green Hydrogen Project in Egypt

Hydrogen is an important source of clean energy to reduce greenhouse gas emissions and mitigate the effects of climate change. (Reuters)
Hydrogen is an important source of clean energy to reduce greenhouse gas emissions and mitigate the effects of climate change. (Reuters)

Vice Chairman and Managing Director of ACWA Power Saudi Arabia Raad Al-Saady revealed that necessary studies to develop the green hydrogen project in Egypt were underway.  

In remarks to Asharq Al-Awsat, Al-Saady stressed that Saudi Arabia has enormous potential to export hydrogen thanks to its strategic location and rich natural resources, including vast areas, an abundance of solar energy and wind power, which all make it a leading force in producing and exporting green hydrogen to all parts of the world.  

In December, ACWA Power signed a framework agreement with Egypt to develop the first phase of the green hydrogen project in the Suez Canal Economic Zone, with a total investment exceeding $4 billion.  

Al-Saady explained that the first phase of the project includes developing green ammonia with a capacity of 600,000 tons annually, with the aim to reach a production of two million tons per year in the second phase of the project.  

He added that ACWA Power aims to become a major exporter of green hydrogen in the world, with a special focus on Europe and the Middle East.  

He noted that the Kingdom was progressing steadily towards achieving sustainability goals and diversifying energy sources, through the implementation of major projects within the framework of Vision 2030 with the aim to reach net zero emissions by 2060.  

He added that Saudi Arabia has all the elements that will push it to achieve great success in the green hydrogen sector in the near future, citing the NEOM green hydrogen project, which has a production capacity of 1.2 million tons annually of green ammonia.

Al-Saady stressed that ACWA Power was seeking to reach zero emissions by 2050, explaining that the company is working to develop multiple projects to generate solar energy in different parts of the Kingdom, which contribute significantly to attaining the goals of sustainability and development in the region.  

He added that such projects create new job opportunities, in addition to helping in the development of local content in the energy, water desalination, and green hydrogen sectors.  

ACWA Power, which was established in 2004, is currently present in 12 countries, and its portfolio includes 81 stations under operation or construction, or in advanced stages of development, with an investment value of SAR 317.8 billion ($84.7 billion).

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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.