Acwa Power, a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants, has recorded strong growth for the first three months both in terms of operating profit before impairment losses and other expenses and net profit attributable to equity holders of the parent.
Announcing its financial results for the three-month period ended March 31, 2022, Acwa Power said its operating income before impairment loss and other expenses surged to SR517 million ($138 million), up 19.5% over last year, while its adjusted net profit attributable to equity holders of the parent (which calculates the impact of non-routine or non-operational transactions on the profit attributable to equity holders of the parent) grew by 10.6% to hit SR155 million ($41 million).
The Saudi group said three water and seven power projects that came into operation between February and December 2021 were the engine of this growth in the first three months by generating additional contractual, operations and maintenance revenue streams.
This was further increased by the collection of performance liquidated damages from the EPC contractor of one of the projects, with the Company’s operating profit adversely affected by extended outages in certain projects, it stated.
The growth was mostly driven by higher share of net results of equity accounted investees, primarily from Jazan’s start of operations and partially offset by mainly lower operating income on account of lower production in the CSP plants in Morocco because of extended outages, it added.
On the solid performance, Chairman Mohammad Abunayyan said: "As a Saudi company with a global portfolio and links to global financial markets, our overall business performance has resulted in a strong financial result for the start of 2022, which is a testament to the stability of our contracted and diversified business model."
"We also welcomed our new board of directors, who bring impressive collective global business acumen and insights, which will benefit us in our growth strategy. While we laud our achievements, we must also acknowledge that we live in challenging and fluid times and must remain vigilant to global events that can adversely impact our business, while working closely with respective governments and our partners to find effective solutions to mitigate their impact," stated Abunayyan.
"As 2022 unfolds, we look forward to strengthening our portfolio in existing and potential markets and assist governments as they work towards diversifying their energy mix with sustainable options in power generation, water desalination and green hydrogen," he added.
CEO and Vice Chairman Paddy Padmanathan said: "With new contributions from several projects achieving their initial or project commercial operation dates since the first quarter of 2021, we are pleased to report a solid start to 2022."
"As we work diligently to evolve our portfolio towards sustainable solutions, whether it is through expansion of our renewable portfolio, conversion to cleaner forms of energy source in our plants, investing in the largest green hydrogen and ammonia project in the world for cleaner fuel or altogether divesting fossil fuel-fired plants, our focus on driving sustainable change remains undeterred," noted Padmanathan.
"All the while, we recognize that we live in a world that continues to present us with new and ongoing challenges some of which are outside of our control, such as the persistent high-cost environment generated by the global pandemic and now further exacerbated by the ongoing situation in Ukraine. This is impacting global supply chain logistics, the cost of commodities and components, as well as causing some delays. However, we are continuously evaluating market conditions, assessing the risks, and developing mitigation plans jointly with our partners to find solutions that effectively address the ensuing impact," he added.
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