Saudi-based ACWA Power has posted $182.3 million (SAR 684.1 million) in net profit for the first half of 2023, registering a 26.3% year-on-year rise, driven by higher operating income and contributions from existing projects.
Operating income has increased by 5.7% to $346.5 million (SAR 1.3 billion) in the first six months, ACWA said in a filing to the Saudi Exchange Thursday.
The rise in operating income is attributed to higher contributions from existing projects on account of plants that experienced outages in prior periods in Morocco and Saudi Arabia, the company said.
ACWA Power's revenues stood at $719.6 million (SAR 2.7 billion) during the first half, an increase of 12% compared to the year-ago period.
Total shareholders' equity, after deducting minority equity, grew by an annual 14.7% to $5 billion (SAR 19 billion) during the first half of 2023.
On the other hand, total comprehensive income plunged 73.4% year-on-year to $259.4 million (SAR 973.4 million) in the first half of this year.
In the second quarter of the year, ACWA said its net profit increased by 6.3% year-on-year to $110.4 million (SAR 414.4 million), yet a 53% surge compared to the first quarter of the year.
The Saudi power company's revenues hit $373.1 million (SAR 1.4 billion) in the second quarter, a 9.1% rise year-on-year. Total comprehensive income in the second quarter of 2023 plunged by 25.7% to $346.5 million (SAR 1.3 billion) compared to the year-ago period.
On July 12, ACWA Power disbursed an annual dividend of $161.7 (SAR 606.8 million), or $ 0.22 (SAR 0.83) per share for 2022. Crucial quote
"Our parent cash flow and balance sheet continue to remain healthy to support our immediate and visible growth pipeline,” said Abdulhameed Al Muhaidib, chief financial officer of ACWA Power, in a statement.
During the second quarter, ACWA Power maintained its momentum in business development. Notably, the company has achieved significant progress, including the successful closure of financing for the $6.3 billion Neom Green Hydrogen Project.
Further, ACWA Power has achieved several milestones in its renewable energy endeavors by securing financing for a photovoltaic project in Egypt and a wind project in Uzbekistan. Alongside these financial closures, ACWA Power has signed three Power Purchase Agreements (PPAs) as part of the Public Investment Fund’s (PIF) renewable pipeline, contributing 4.55GW of solar power capacity to the company's portfolio.
The independent power producer also made strides in green hydrogen by inking a Hydrogen Purchase Agreement and a complementary Wind Power Purchase Agreement in Uzbekistan, marking ACWA Power’s second green hydrogen project.
Riyadh-based ACWA Power, which develops, invests, and operates power, water desalination, and green hydrogen plants across 12 countries in the Middle East, Asia, and Africa (MENA) region, has a market capitalization of $35.8 billion (SAR 134.4 billion) as of August 10, 2023.
