- ACWA Power’s net profit for H1 2024 grew 36% to SAR 927 million ($247 million).
- Operating income rose to SAR 1,389 million, boosted by a SAR 402 million gain from divesting wind projects in Uzbekistan.
- The company added 10.5GW of renewable capacity, including major PPAs for the 5GW Aral Wind project in Uzbekistan and 5.5GW solar projects in Saudi Arabia.
- A capital increase of SAR 7,125 million was recommended to support a growth strategy aiming to triple assets under management to $250 billion by 2030.
ACWA Power, a Saudi-listed company, reported a remarkable 36% growth in net profit for the first half of 2024. The net profit reached SAR 927 million ($247 million) by June 30, 2024, a significant increase from SAR 243 million during the same period in 2023. This impressive growth highlights the company’s robust financial health and strategic growth initiatives.
Increased Operating Income
The company’s operating income before impairment losses and other expenses also showed positive growth, reaching SAR 1,389 million. This figure represents an increase of SAR 100 million compared to the same period last year. A notable contribution to this income was the SAR 402 million gain from the partial divestment of its Bash and Dzhankeldy wind projects in Uzbekistan. This gain underscores ACWA Power’s strategic investments and successful management of its development business and construction management services.
Expansion and New Projects
During the first half of 2024, ACWA Power continued to expand its portfolio, adding a record 10.5 GW of renewable power generation capacity.
In May, the company signed a Power Purchase Agreement (PPA) with the National Electric Grid of Uzbekistan for the 5GW Aral Wind with BESS project. This project is the largest wind farm in Central Asia and marks ACWA Power’s 15th project in Uzbekistan.
In June, ACWA Power signed three PPAs for large-scale photovoltaic (PV) solar projects in Saudi Arabia. These projects, with a combined capacity of 5.5GW, represent a total investment of SAR 12.3 billion.
These agreements are part of the fourth round of the ACWA Power-Public Investment Fund (PIF) Strategic Framework Agreement, further strengthening the company’s renewable energy portfolio.
Leadership Perspectives
Marco Arcelli, Chief Executive Officer of ACWA Power, expressed confidence in the company’s financial results, stating, “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.”
Abdulhameed Al Muhaidib, Chief Financial Officer, also commented on the results, saying, “Despite the operational challenges witnessed in a few assets, the diversity of our asset base and our business model has allowed us to grow our operating and net profit in the first six months of this year.”
Major Project Milestones
ACWA Power successfully reached financial close on three significant projects: the Taiba and Qassim Combined Cycle Gas Turbine (CCGT) projects in Saudi Arabia, and the Hassyan Independent Water Project (IWP) in the UAE. These projects represent a total investment of SAR 18 billion, showcasing ACWA Power’s commitment to expanding its operational footprint.
On the operations front, several projects have come fully or partially online. The 1,500MW Sudair Solar PV in Saudi Arabia, the 200MW Kom Ombo solar PV in Egypt, and the 909m³/day Al Taweelah water desalination plant in the UAE are now operating at full capacity. Additionally, the 1,500MW Sirdarya CCGT in Uzbekistan is generating 918MW, with the remaining capacity expected to come online this year.
The Shuaa Energy 3 company, in which ACWA Power holds a 24% stake, received the commercial operation certificate for the 300MW Phase C, the fifth phase of the Mohammad Bin Rashid Al Maktoum Solar Park in Dubai.
Strategic Capital Increase
On June 10, 2024, ACWA Power’s Board of Directors recommended increasing the company’s capital by SAR 7,125 million through a Rights Issue. This strategic move aims to support the company’s growth strategy of tripling the assets under management to $250 billion by 2030.
The primary driver for this capital raise is the expected increase in the average annual equity commitments by the company to around $2.5 billion between 2024 and 2030, up from the previous range of $1 billion to $1.3 billion.
The capital increase will enable ACWA Power to continue investing in its expanding portfolio while maintaining a strong financial position. The Board of Directors’ recommendation is subject to approval by the Capital Market Authority and an extraordinary general assembly.
ACWA Power’s impressive financial performance in the first half of 2024, coupled with strategic expansions and new project milestones, underscores its position as a leading player in the global renewable energy sector. The company’s commitment to growth, innovation, and sustainable development continues to drive its success and market leadership.
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Last Updated on August 5, 2024 by Safiya K
