ACWA Power has unveiled its financial outcomes for the six-month duration concluding on June 30th. The firm’s net profit, which can be traced back to its parent’s equity holders, surged by 26 percent compared to H1 2022, achieving SAR 684M. The company clarified that elevated financial costs were primarily due to the fresh debt release aimed at expansion and the consistent escalation in market rates.
Nonetheless, this was counterbalanced by an upswing in alternate earnings and a positive alteration in deferred tax circumstances in comparison to the identical phase in 2022, according to Gulf Business.
“The results of H1 2023 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, of 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.
Financial Stability and Growth Prospects
Abdulhameed Al Muhaidib, the company’s chief financial officer, ACWA Power, 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”. Operating income – prior to impairment, losses, and additional expenditures – for the half-year duration amounted to SAR 1,289M. The improved power generation from plants that underwent extended shutdowns in the previous year maintained enhanced efficiency with mainly stabilized operations. This, in conjunction with the introduction of new facilities that started contributing to the company’s outcomes, resulted in increased earnings encompassing operational and maintenance (O&M) charges.
Diversifying Renewable Portfolio
In the second quarter, besides securing financial closure for two new projects – a photovoltaic venture in Egypt and a wind project in Uzbekistan – ACWA Power also finalized the financing for the Neom Green Hydrogen Project, valued at $6.3B. Following this, the project entity, Neom Green Hydrogen Company, authorized Air Products, the EPC contractor, to proceed, marking a successful milestone.
Within the same timeframe, the company inked three power purchase agreements as a component of the Public Investment Fund’s (PIF) renewable pipeline, augmenting the solar power capacity on its portfolio by 4.55 GW.
Consequently, ACWA Power’s cumulative power capacity, inclusive of operational, under-construction, and advanced development projects, now exceeds 50 GW. Renewable sources contribute over 23 GW, accounting for 46 percent of the total. This achievement closely aligns with the company’s 2030 objective of maintaining a balanced portfolio split of 50/50 between renewables and adaptable generation.
Furthermore, ACWA Power entered into a hydrogen purchase agreement and an accompanying wind power purchase agreement in Uzbekistan, marking its second green hydrogen initiative.
During this period, ACWA Power received the commercial operation certificate for Group 2 of the Taweelah RO Desalination Company, located in Taweelah, Abu Dhabi, from Emirates Water and Electricity Company (EWEC). The facility is now supplying 183 million gallons per day to the Abu Dhabi network.
Simultaneously, the inauguration of the Jubail 3A IWP (Jazlah Plant), a substantial 600,000 m3/day independent water project with integrated water desalination-solar PV capabilities in Al Jubail, Saudi Arabia, took place.
On July 12, the company disbursed a full annual dividend amounting to SAR 606,812,775.07 (equivalent to SAR 0.83 per share) for the year 2022.