Acwa’s quarterly bottom line jumps, but core earnings lose ground

Acwa Power’s net income rose 71.1% y-o-y to SAR 635 mn in 3Q, with revenue up 32.7% to SAR 2.2 bn, driven by higher income from operation and maintenance services, energy, and development, procurement, and construction services, according to a Tadawul filing.

For 9M, the picture is softer… Revenue rose 16% y-o-y to SAR 6.24 bn in the first nine months of 2026, but net income was essentially flat at SAR 1.3 bn, up just 0.6%. On the company’s own adjusted basis, stripping out one-off items, net income fell 16%.

… and the culprit is slower projects. Operating income before impairments slipped 8.8% to SAR 2.6 bn as the development and construction-management fees the company books when projects hit milestones came in lighter, the firm said in its earnings (pdf). Acwa pointed to slower progress on project milestones amid regional volatility, against a 2025 that carried heavier revenue recognition on larger projects. Higher FX losses on its Moroccan assets and financing costs on newly operational plants added to the drag. Reported net income held flat only because last year’s figure was weighed down by a Noor 3 impairment in Morocco that largely didn’t recur.

Regional security reaches operations: Acwa CEO Samir J. Serhan said some of the group’s Middle East facilities were hit by security incidents during the period, creating near-term headwinds in the third quarter, and the company is still assessing the operational and financial fallout. The plants, however, kept running through it as power availability rose to 93.5% and water held at 98.6%.

REMEMBER- Acwa said in a June investor report that some of its facilities in the region came under attack, though it maintained it had an operational framework to manage the risks. Jefferies analyst Prateek Bhatnagar had told Bloomberg at the time that Acwa’s long-term water contracts partially insulate it from short-term downturns.

But the portfolio is still growing: Over the nine months, Acwa signed agreements that added 5.2 GW of power and 6 GWh of storage, reached financial close on four projects worth SAR 19.2 bn, and won three of the four battery-storage projects Saudi tendered in the period. It now manages 112 assets across 16 countries representing SAR 478 bn in AUM, with gross capacity of 98.2 GW — 52.3 GW of it renewable — alongside 11.6 GWh of battery storage and 9.7 mn cbm / d of desalination.

Prices up, volumes gutted for Sipchem

Sahara International Petrochemical’s (Sipchem) net loss narrowed to SAR 401.6 mn in 3Q 2026 from a SAR 468.7 mn loss a year earlier, as higher selling prices partly offset volumes still being cut by the regional supply-chain disruption, according to its earnings (pdf) and Tadawul filing. Revenue rose 5.1% to SAR 1.4 bn.

The narrowing owes as much to the prior-year base as to trading. Higher average selling prices lifted the top line even as sales volumes fell 36% y-o-y and feedstock costs for ethylene and propane rose. The reported improvement partly reflects the prior-year base where 3Q 2025 carried a SAR 100 mn impairment at subsidiary International Diol Company and a SAR 91.4 mn provision for discontinued capital projects. This quarter brought its own hit, a SAR 171 mn impairment on an associate’s plant, keeping the loss deep.

9M is where the damage shows: The nine-month net loss widened to SAR 1.2 bn from SAR 442.6 mn a year earlier, on revenue of SAR 3.52 bn, down 32.8%, as a 52% drop in sales volumes from supply-chain disruption overwhelmed higher selling prices. The period absorbed higher feedstock costs (notably butane), associate plant-turnaround activity, and the 3Q impairment.

A stake sale lifts Dallah to record 3Q

Dallah Healthcare’s net income jumped 207.3% y-o-y to a record SAR 436.1 mn in 3Q, driven by a SAR 356.6 mn gain — net of zakat — from the sale of its stake in Riyadh’s Al Fagih Hospital, according to a Tadawul filing. Excluding non-recurring items, net income came in at SAR 79.5 mn, down 28.6% y-o-y.

REMEMBER- Dallah sold its 31.21% stake in Al Fagih to Fakeeh Care for SAR 498 mn as part of a SAR 1.6 bn acquisition that closed in July.

Visits rise as two hospitals lag: Revenue rose 2.3% to SAR 1.09 bn on a 7% increase in patient visits to 1.04 mn, led by a 20.4% jump in the Eastern region. Gross income eased 1.2%, which the company attributed to a 55% drop in long-term government care patients at Dallah Namar Hospital and a 9% fall in visits at Kingdom Hospital. Higher credit loss provisions and acquisition-related finance costs also weighed on core earnings.

9M follows a similar pattern: Net income rose 47.2% y-o-y to SAR 620.6 mn on revenue up 8.5% to SAR 3.21 bn, as patient visits grew 14.5%. Medical services revenue rose 10% to SAR 2.41 bn, or around 75% of the total, while pharma sales and distribution each grew 5%, according to its earnings report (pdf). Excluding one-offs, net income declined 12.8% to SAR 276.4 mn, which the company attributed to SAR 38 mn in added operating expenses from consolidating Al Khobar and Al Ahsa hospitals, a SAR 34 mn rise in finance costs on acquisition-related borrowing, and c. SAR 19 mn in higher credit loss provisions. Dallah said it is using the sale proceeds to pay down debt, which it expects to lower finance costs.

DIVIDENDS- The board approved a 3Q dividend of SAR 0.50 per share, or SAR 60.3 mn, payable on 29 November to shareholders as of the close of trading on 9 November, according to a separate Tadawul filing.

Acquisition costs weigh on Fakeeh’s earnings

Fakeeh Care’s net income fell 45.9% y-o-y to SAR 38.8 mn in 3Q, even as revenue rose 19.7% to a record SAR 931.3 mn, according to a Tadawul filing. The company said 3Q was the first quarter to carry the depreciation and financing costs of its Al Fagih hospital acquisition, with the costs offsetting a 10% rise in EBITDA to SAR 138 mn.

ICYMI- Fakeeh Care closed its SAR 1.6 bn acquisition of Riyadh’s Al Fagih Hospital, which included Dallah Healthcare’s 31.21% stake, in July.

Where the growth came from: Patients served rose 24% to nearly 593k, and revenue at Fakeeh’s three newer hospitals — Al Fagih and its own hospitals in Riyadh and Madinah — more than tripled to SAR 272 mn, or 29% of group revenue, according to the company’s earnings release (pdf). Excluding Al Fagih, group revenue grew 5%, while revenue at its mature Jeddah business fell 11% on a revised contract to run a hospital for a third party, lower home healthcare revenue, and tougher local competition, the company said.

Where the costs came from: The newer hospitals posted positive EBITDA for the first time, but depreciation and amortization costs rose to SAR 66 mn from SAR 49 mn (with about half of the increase from Al Fagih), and net finance costs rose to SAR 28 mn from SAR 9 mn on the debt used to finance the acquisition and Al Fagih’s own debt.

For the first nine months, net income fell 40.2% y-o-y to SAR 135.1 mn, while revenue increased 7.1% to SAR 2.45 bn, or 2% excluding Al Fagih. Fakeeh attributed the decline in net income to higher depreciation and financing costs following its expansion.

Derivative losses tip Almoosa into 3Q net loss

Almoosa Health swung to a net loss of SAR 31.8 mn in 3Q from net income of SAR 65.8 mn a year earlier, according to a Tadawul filing, as a SAR 81.9 mn noncash mark-to-market (MTM) loss on derivatives — against a SAR 14.2 mn gain in 3Q 2025 — and a SAR 2.9 mn unrealized loss on a fund investment outweighed a 13.2% y-o-y rise in revenue to SAR 403.6 mn. Excluding derivatives, adjusted net income slipped 2.9% to SAR 50.1 mn.

Operating income rose 16.2% to SAR 64.6 mn in 3Q on higher patient volumes and more efficient overhead spending, according to the company’s earnings release (pdf). Outpatient visits jumped 29.3% to 416.7k, helped by three new medical centers opened in 2025. Gross income rose 7% to SAR 125.6 mn, though the gross margin narrowed to 31.1% from 33.0% as direct costs from new facilities grew faster than revenue.

9M shows the cost of expansion: Net income fell 84.9% y-o-y to SAR 30.3 mn on revenue up 12.6% to SAR 1.16 bn, mainly driven by a SAR 104.2 mn noncash MTM loss on derivatives against a SAR 46.5 mn gain a year earlier. The period also included a SAR 4.1 mn zakat charge, while the prior-year period benefited from a non-recurring zakat credit of SAR 1.2 mn. Excluding derivatives, adjusted net income fell 13% to SAR 134.5 mn, as higher operating expenses tied to its expansion pushed operating income down 4% to SAR 156.9 mn.

DIVIDENDS- Almoosa will distribute SAR 11.1 mn in dividends for 3Q at SAR 0.25 per share, it said in a separate filing. The distribution date is set for Thursday, 26 November.