Q3 Results Suggest being on Track to Realize Objectives – ACWA Power -CEO

Paddy Padmanathan, CEO of ACWA Power, acknowledged that the business’s Q3 results show that the company is on track to meet its financial goals for Fiscal Year 2021, which were set forth in the prospectus.

Following the historic offering of ACWA Power on the Saudi Stock Exchange, where the overall subscription exceeded 250 times, this gives us a strong basis for growth, as it is one of our key priorities.

We are proud of our shareholders’ faith in our ability to be an asset that serves people in the Kingdom and around the world, as a Saudi enterprise and a prominent national champion, in our sector, he added.

They are our greatest sources of motivation and inspiration, he said, elaborating that we will honor this trust by continuing our journey of innovation and quality across our operations, all while fulfilling our objective of providing communities around the world with reliable, affordable energy and water.

The International Water and Energy Works Company “ACWA Power”, the world’s foremost developer, investor, and operator of power production and water desalination plants, released its Q3 results.

For the first nine months of the Year 2021, operating income before impairment of assets and other costs was SR1,660 million, a stable figure compared to the same period in the previous year.

Due to the start-up of projects, or the operation of projects for the first full year in 2021, such as the “Al-Dur 2” independent water and energy production plant, and the Hassyan project to produce energy using clean coal technology, “NOMAC,” the maintenance and operation company wholly owned by ” ACWA Power, achieved higher operating income.

ACWA Power’s three projects: Sadir, Sirdaria, and Redstone, completed their respective financial closing phases during the first nine months of the year, contributing to ACWA Power’s higher operating income for the period, but were impacted by the cost of covering the staff long-term incentive plan and lower shares in net equity results.

Because of the accelerated depreciation of two oil-operated assets, ownership of invested businesses is delayed.

The parent company’s net profit attributable to shareholders for the first nine months of 2021 was SR420 million, down 51% from the same period in 2020.

The decrease is primarily due to SR280 million decrease in fixed operating income in Q3, which relates to covering the IPO incentive plan, which consists of providing shares and cash benefits to eligible employees in conjunction with the company’s public offering, as well as additional fees for asset impairment.

ACWA Power’s commitment to becoming carbon-neutral by 2050, was underscored when it agreed to sell one of its four oil-powered properties.

The acquisition also demonstrated the company’s resolve to continue to lead the energy sector reform in its home country of Saudi Arabia and internationally.

Operational highlights

ACWA Electricity had 65 power and/or water desalination projects, in 13 countries as of September 30, 2021, with a total project cost of SR252 billion ($67 billion).

The main operational developments for the period can be summarized as follows:

• The 1,500 MW Sadir IPP facility attained financial close in July, with ACWA Power owning 35 percent of the shares and the Public Investment Fund and Saudi Aramco controlling 35% and 30% of the project, respectively.
• In July, the company was given the task of completing the first phase of the Shuaa Energy 3 project, which has a production capacity of 300 MW out of a total of 900 MW.
• The Mohammed bin Rashid Al Maktoum Solar Park in Dubai is in its fifth phase, with the first phase achieving full commercial output potential in less than a year.
• The signing of a SR45-billion ($12 billion) asset acquisition and project financing deal for the Jazan Gasification and Energy Production Complex’s integrated cycle power plant, which is the largest arrangement of its sort in ACWA Power’s history.
• Under a 25-year deal with Aramco, the project will provide electricity, gas, power, steam, hydrogen, and other services to the Jazan Refinery. In the Year 2022, it is expected to make a significant contribution to ACWA Power’s financial results.
• A 32% share in the Shuqaiq oil-based independent water and electricity plant was sold to NOMAC, along with a comparable 32% stake in the O&M contract.
• This action was taken to support ACWA Power’s capital recycling strategy, which is part of the company’s ambition to achieve total carbon neutrality.
• The Egyptian government’s Council of Ministers has awarded the company a power purchase agreement for an IPP wind power facility, with a production capacity of 1,100 megawatts.