ACWA Power incurs losses of SR21.8 million in the 3Q

The International Water and Energy Works Company “ACWA Power” incurred losses of SR21.86 million during the third quarter, compared to profits of SR541.52 million during the same quarter of the previous year.

This came after International Company for Water and Power Projects announced  on Wednesday its interim financial results for the period ending on 2021-09-30 (nine months)

The operating profit amounted to 276.6 million riyals during the third quarter, compared to SR783.8 million riyals during the same quarter of the previous year, a decline of 64.71%.

The gross profit amounted to SR714.98 million during the third quarter, compared to a total profit of SR754.48 million during the same quarter of the previous year, a decrease of 5.2%.

The net profit after zakat and tax during the current period amounted to SR434 million, compared to SR922.86 million during the same period of the previous year, a decrease of 52.97%.

Profits per share during the current period amounted to 0.65 riyals, compared to 1.32 riyals during the same period of the previous year.

Net loss attributable to equity holders of the parent for the third quarter of 2021 was SR 27 million compared to net profit attributable to equity holders of the parent of SR 524 million for the same quarter of 2020.

This decrease was mainly driven by a decrease in development and construction management services in the current quarter, a decrease in share in net results of the equity accounted investees largely because of accelerated depreciation charges pertaining to two oil-fired assets in Saudi Arabia, recognition of share-based payments expense related to the IPO, and an increase in Zakat and tax charge.

Net loss attributable to equity holders of the parent for the third quarter of 2021 was SAR 27 million compared to net profit attributable to equity holders of the parent of SAR 308 million for the second quarter of 2021.

This decrease was mainly driven by a reduction in share of net results of the equity accounted investees largely on account of recognition of liquidated damages income in second quarter and recognition of an impairment loss in current quarter, recognition of share-based payments expense related to the IPO, and an increase in Zakat and tax charge.

Net profit attributable to equity holders of the parent for the first nine months of 2021 was SR 420 million compared to SR 850 million for the same period in 2020. This decrease was mainly driven by the recognition of share-based payments expense related to the IPO, a reduction in share in net results of the equity accounted investees largely on account of accelerated depreciation in two oil-fired assets in Saudi Arabia, recognition of a long-term incentive plan expense, and an increase in Zakat and tax charge. These were partly offset by increased development and construction management services and further supported by improved results from the Group’s operation and maintenance (O&M) business.

Certain prior period figures have been re-classified to conform with the presentation in the current period.

The Company’s net profit/(loss) include the financial impact of one-time or non-recurring transactions that are not normally part of its ordinary business cycle. Please refer to the Company’s IR website for a more detailed management discussion and analysis of the financial results of the concerned periods.