Acwa Power delivers robust H1 results; net profit surges 26pc
OIL AND GAS NEWS
Saudi-based Acwa Power, the world's largest private water desalination company, the first mover into green hydrogen, and a leader in energy transition, has announced robust results for the first half recording a net profit - attributable to equity holders of the parent - of SR684 million, up 26% over last year, supported by higher operating income.
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 SR1.29 billion ( $343 million).
Higher power generation by plants that experienced extended shutdowns last year continued delivering better performance with mostly stabilised 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.
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 favourable 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.
"Rather than rest on our laurels, 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 that, “our parent cash flow and balance sheet continue to remain healthy to support our immediate and visible growth pipeline.”
During the three-month period ended June 30, 2023, the company continued its accelerating momentum in the business development space.
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 on its portfolio.
With this, Acwa Power’s total aggregate power capacity of the operational, under construction and in 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.
It has also signed a Hydrogen Purchase Agreement and a complementary Wind Power Purchase Agreement in Uzbekistan to constitute Acwa Power’s second green hydrogen project.
The period saw Acwa Power receive from the Emirates Water and Electricity Company (EWEC) the commercial operation certificate for Group 2 of Taweelah RO Desalination Company located in Taweelah, Abu Dhabi, United Arab Emirates. Now supplying 183 million gallons per day to the Abu Dhabi network.
Meanwhile, the Jubail 3A IWP (Jazlah Plant), a 600,000 m3/day independent water project in Al Jubail, Saudi Arabia, which is the country’s first large-scale integrated water desalination-solar PV project, was also inaugurated during this period.
