ACWA Power reports increase in net profit for Q3 and first nine months of 2022
ACWA Power Company, a publicly listed company on the Saudi Arabian Tadawul stock exchange (ACWA Power: 2082) and a leading Saudi developer, investor, and operator of power generation, water desalination, and green hydrogen plants worldwide, today announced its third quarter and year-to-date financial results for the three months and nine months ending 30 September 2022.
In the first nine months of the year, the company recorded a consolidated net profit, attributable to equity holders of the parent, of SAR883 million, representing a 110% increase when compared to the same period last year. This was driven by robust growth in ACWA Power’s operating income before impairment and other expenses, as well as increases in other income, while amplified by lower profit on account of one-off or non-routine expenses during the same period in the year prior.
After excluding the impact of one-off and non-routine expenses for the nine-month period ending 30th September, the company’s adjusted net profit grew by 7%, versus the same period in 2021. This was achieved despite the additional deferred tax losses incurred by the company’s subsidiaries in Morocco due to the devaluation of the Moroccan Dirham (MAD).
Operating income before impairment loss and other expenses in the nine-month period ending 30th September was SAR1,877 million, an 11% increase by SAR189 million, compared to the same period last year, which was achieved despite plant outages in four facilities. The higher variance was mainly due to new or additional income from projects that achieved their commercial operation dates after September 2021 in addition to those which were partially operational in the first nine months of the year prior.
“ACWA Power’s unique position in Saudi Arabia and strategic penetration in international high-growth markets has resulted in robust portfolio growth across our renewable energy, water desalination, and green hydrogen assets,” said Mohammad Abunayyan, Chairman, ACWA Power. “Our business results demonstrate our ability to stay on course despite disruptive global conditions. We have achieved a number of financial and project milestones over the past 9 months, supported in equal measure by our strong partnerships across geographies, including bringing China’s Silk Road Fund as a co-investor in our Sirdarya CCGT project in Uzbekistan most recently. These achievements validate the confidence and trust our partners have in our ability to drive sustainable value and deliver solid returns to our investors.”
In September of this year, ACWA Power entered into a Sale Purchase Agreement (SPA) with Silk Road Fund of China for a 49% stake in its wholly owned subsidiary, ACWA Power Uzbekistan Project Holding Company which holds a 100% stake in ACWA Power Sirdarya (its project company). The sale is expected to reach completion before the end of the year.
“This quarter’s financial results once again illustrate the strength, resilience, and efficacy of ACWA Power’s develop-invest-operate-optimize model, not only in weathering market volatility but in enabling us to maintain attractive capital distribution to our shareholders on the back of our continued financial performance,” said Paddy Padmanathan, Vice Chairman and Chief Executive Officer, ACWA Power.
In June this year, ACWA Power’s Ordinary General Assembly approved the distribution of dividends for the year 2021, amounting to SAR563 million in total, which is SAR0.77 per share, or 7.7% of the nominal value per share, which was subsequently fully paid in July. Following its IPO in October 2021, ACWA Power is one of the top performers on the Tadawul so far into 2022 in terms of its stock price.
“We remain cautiously optimistic amid the headwinds around us,” continued Padmanathan “as we work together with diverse, and quality partners globally, bringing our extensive experience, entrepreneurship and innovative solutions in power, water and green hydrogen, while championing the transition to a more sustainable future.”
Abdulhameed Al Muhaidib, Chief Financial Officer, ACWA Power added: “We delivered another quarter with growing profit and robust overall financial results despite the global geopolitical and macroeconomic challenges. At the same time, we don’t consider ourselves immune to what’s happening around us. We are vigilant in our risk assessment, ongoing due diligence and scenario planning and see these steps as essential in building our capability to continue delivering successful outcomes.”
In August this year, ACWA Power’s Umm Al Quwain Independent Water Plant (UAQ IWP) achieved full commercial operation at 682 thousand cubic meters per day potable water capacity, following the plant’s partial commercial operation at 33 percent of its full capacity since December 2021. As of September 30, 2022, ACWA Power’s portfolio comprised 67 projects in operation, construction, or advanced development in 13 countries. Details for the Company’s entire portfolio of projects can be found on the Company’s website www.acwapower.com.
A comprehensive Investor Report comprising the CEO’s address to shareholders, the Company’s interim consolidated financial statements and the independent auditor’s review report for the three- and nine-month period ended 30 September 2022 and the Management’s Discussion and Analysis of the financial results is available on ACWA’s Power’s Investor Relations section at http://acwapower.com/en/investor-relations/ .
The company will hold an investor conference call on November 03, 2022, at 16.00 KSA time, (1 pm GMT) following the close of trading on the bourse.