RIYADH: Saudi utility giant ACWA Power reported a 35.46 percent increase in net profit for the first half of 2024, reaching SR926.79 million ($246.88 million), compared to the same period last year.
In a statement to the Saudi Stock Exchange, the company attributed the earnings rise to higher gross profit, driven by increased revenues, as well as growth from a higher profit share from equity-accounted investees and increased finance income.
This comes as ACWA Power aims to lead Saudi Arabia’s energy transition and expand globally, targeting high-growth economies. The company plans to raise SR7.13 billion in capital to triple assets under management by 2030, supporting its growth and financial stability.
“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,” Marco Arcelli, CEO of ACWA Power, said in a statement.
In the first half of 2024, ACWA Power’s total revenue saw a marginal year-on-year increase of 2.58 percent, reaching SR2.81 billion.
“Despite the operational challenges witnessed in a few assets, the diversity of our asset base, as well as our business model, has allowed us to grow our operating and net profit in the first six months of this year,” said Abdulhameed Al-Muhaidib, chief financial officer at ACWA Power.
The company’s net profit for the second quarter surged by 52.17 percent to SR630.62 million compared to the same period the previous year.
Net profit for the second quarter soared by 112.92 percent from SR291.17 million in the first three months.
As an early mover in green hydrogen and sustainable projects, the company aims to explore opportunities beyond the Kingdom, focusing on renewables and avoiding coal and oil investments as it works toward net zero by 2050.
During the first half of this year, the firm, 50 percent owned by the Public Investment Fund, expanded its portfolio by adding a record 10.5 gigawatts of renewable power generation capacity.
In May, it signed a power purchase agreement with the National Electric Grid of Uzbekistan for up to 5GW Aral Wind with BESS project, Central Asia’s largest wind farm and ACWA Power’s 15th project in the region.
In June, the Riyadh-based company signed another three PPAs for large-scale photovoltaic solar projects in Saudi Arabia, with a combined capacity of 5.5GW and a total investment cost of SR12.3 billion, as part of the fourth round of the ACWA Power-Public Investment Fund Strategic Framework Agreement.
