ACWA Power’s Net Profit Reaches SAR927 Million in First Half of 2024

11:22-4 August 2024 AD ـ 29 Muharram 1446 AH

ACWA Power’s Net Profit Reaches SAR927 Million in First Half of 2024

Saudi-listed ACWA Power, the world’s largest private water desalination company, announced on Sunday its consolidated financial results for the six months ending June 30, 2024.

The company’s net profit – attributable to equity holders of the parent – reached SAR927 million, growing by 36% or SAR243 million versus the comparable period in 2023, said a statement from ACWA Power.

Operating income before impairment losses and other expenses reached SAR1,389 million in the same period, with an increase of SAR100 million.

As part of its operating income, the company reported a SAR402 million development business and construction management services gain on partial divestment of its Bash and Dzhankeldy wind projects in Uzbekistan.

During the first half of the year, the company continued to add new projects to its portfolio, including the addition of a record 10.5GW of renewable power generation capacity.

In May, the company signed a Power Purchase Agreement (PPA) with the National Electric Grid of Uzbekistan for up to 5GW Aral Wind with BESS project, which is Central Asia's largest wind farm and ACWA Power's 15th project in Uzbekistan.

In June, three PPAs were signed for large-scale PV solar projects at an aggregate total investment cost of SAR12.3 billion in Saudi Arabia with a combined capacity of 5.5GW as the fourth round of the ACWA Power-Public Investment Fund (PIF) Strategic Framework Agreement.

ACWA Power CEO Marco Arcelli stated: “Our financial results renew our confidence in pursuing our ambitious growth agenda and allow us to accelerate our mission of delivering low-cost and responsible water and power globally.”

ACWA Power CFO Abdulhameed Al Muhaidib said: “Despite the operational challenges witnessed in few assets, the diversity of our asset base as well as our business model has allowed us to grow our operating and net profit in the first six months of this year.”

ACWA Power has successfully reached financial close on three major projects, the Taiba and Qassim Combined Cycle Gas Turbine (CCGT) projects in Saudi Arabia, and the Hassyan IWP project in the UAE, with a total investment of SAR18 billion for all three.

US Tariffs Could Slow China's Growth to 4.5% in 2025

People walk past a billboard which reads I love Beijing, Happy New Year at 798 art district, ahead of the upcoming Lunar New Year, marking the Year of the Snake, in Beijing on January 14, 2025. (Photo by JADE GAO / AFP)

Beijing: Asharq Al Awsat

08:01-15 January 2025 AD ـ 16 Rajab 1446 AH

Beijing: Asharq Al Awsat

08:01-15 January 2025 AD ـ 16 Rajab 1446 AH

US Tariffs Could Slow China's Growth to 4.5% in 2025

China's economic growth is likely to slow to 4.5% in 2025 and cool further to 4.2% in 2026, a Reuters poll showed, with policymakers poised to roll out fresh stimulus measures to soften the blow from impending US tariff hikes.

Gross domestic product (GDP) likely grew 4.9% in 2024 - largely meeting the government's annual growth target of around 5%, helped by stimulus measures and strong exports, according to the median forecasts of 64 economists polled by Reuters.

But the world's second-largest economy faces heightened trade tensions with the United States as President-elect Donald Trump, who has proposed hefty tariffs on Chinese goods, is set to return to the White House next week.

“Potential US tariff hikes are the biggest headwind for China's growth this year, and could affect exports, corporate capex and household consumption,” analysts at UBS said in a note.

“We (also) foresee property activity continuing to fall in 2025, though with a smaller drag on growth.”

Growth likely improved to 5.0% in the fourth quarter from a year earlier, quickening from the third-quarter's 4.6% pace as a flurry of support measures began to kick in, the poll showed.

On a quarterly basis, the economy is forecast to grow 1.6% in the fourth quarter, compared with 0.9% in July-September, the poll showed.

The government is due to release fourth-quarter and full-year GDP data, along with December activity data, on Friday.

China's economy has struggled for traction since a post-pandemic rebound quickly fizzled out, with a protracted property crisis, weak demand and high local government debt levels weighing heavily on activity, souring both business and consumer confidence.

Policymakers have unveiled a blitz of stimulus measures since September, including cuts in interest rates and banks' reserve requirements ratios (RRR) and a 10 trillion yuan ($1.36 trillion) municipal debt package.

They have also expanded a trade-in scheme for consumer goods such as appliances and autos, helping to revive retail sales.

Analysts expect more stimulus to be rolled out this year, but say the scope and size of China's moves may depend on how quickly and aggressively Trump implements tariffs or other punitive measures.

More stimulus on the cards

At an agenda-setting meeting in December, Chinese leaders pledged to increase the budget deficit, issue more debt and loosen monetary policy to support economic growth in 2025.

Leaders have agreed to maintain an annual growth target of around 5% for this year, backed by a record high budget deficit ratio of 4% and 3 trillion yuan in special treasury bonds, Reuters has reported, citing sources.

The government is expected to unveil growth targets and stimulus plans during the annual parliament meeting in March.

Faced with mounting economic risks and deflationary pressures, top leaders in December ditched their 14-year-old “prudent” monetary policy stance for a “moderately loose” posture.

China's central bank is expected to deploy its most aggressive monetary tactics in a decade this year as it tries to revive the economy, but in doing so it risks quickly exhausting its firepower. It has already had to repeatedly shore up its defense of the yuan currency as downward pressure pushes it to 16-month lows.

Analysts polled by Reuters expected the central bank to cut the seven-day reverse repo rate, its key policy rate, by 10 basis points in the first quarter, leading to a same cut in the one-year loan prime rate (LPR) - the benchmark lending rate.

The PBOC may also cut the weighted average reserve requirement ratio (RRR) for banks by at least 25 basis points in the first quarter, the poll showed, after two cuts in 2024.

Consumer inflation will likely pick up to 0.8% in 2025 from 0.2% in 2024, and rise further to 1.4% in 2026, the poll showed.

ACWA Power’s Net Profit Reaches SAR927 Million in First Half of 2024