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A solid 2Q for Acwa Power: Saudi Arabia’s Acwa Power reported a 6.3% y-o-y increase in net income in 2Q to report SAR 414.4 mn on the back of an increased operating income, according to financial results sent to Tadawul on Thursday. Its revenues rose 9.1% y-o-y during 2Q reaching SAR 1.4 bn.
What’s behind the increase? The rise in net profit during the quarter was due to a higher operating income before impairment and other expenses. The company attributed this to new projects as well as greater contribution from existing projects.
A profitable 1H: The Saudi utility giant reported a 26.3% y-o-y rise in net income for the first half of the year to SAR 684.1 mn from SAR 541.7 mn in the corresponding period last year. Its revenues were up 12.2% y-o-y during the first six months of the year to SAR 2.7 bn from SAR 2.4 bn in the same period last year.
Yet, it could have been better: The increase in net profit during both the second quarter and first half was partially offset by higher finance charges due to additional debt, including the sukuk tranche issued by Acwa Power, the refinancing in one of the subsidiaries, and higher finance costs on the back of higher market rates.
Acwa had a very good year: The renewables giant said it was able to achieve four financial closes in the first half of the year, including the 200 MW Kom Ombo solar plant in Egypt and the 100 MW Karatau wind farm in Uzbekistan, according to its investor report (pdf). It also contributed to the financial closing of the USD 6.3 bn mega hydrogen plant in Neom and signed a hydrogen purchase agreement and a complimentary wind power purchase agreement in Uzbekistan.
Uzbekistan is the star of the year: Acwa Power said it signed a roadmap agreement with Uzbekistan’s Energy Ministry and the Uzbekistani sovereign wealth fund to set up a 1 GW wind energy and battery storage project in the country. It also signed an EPC contract with Energy China Group Corporation (CEEC) for a solar PV project in Uzbekistan’s Tashkent.
Where things stand now: PPAs signed by Acwa Power during the first half of the year have helped bring its total power capacity to over 50 GW, according to the report. Over 23 GW of the capacity, representing 46%, are renewables. Such momentum brings it closer to its 2030 target of a 50/50 portfolio between renewables and flexible generation, it said.
