ACWA Power Profits Decrease to SR744 mln at End of 2021 by 18%

The ACWA Power net profit after zakat and tax decreased to SR744 million during the year 2021, compared to SR902 million during the year before last, at a rate of 18%.

This came after ACWA Power announcement on Wednesday of the estimated annual financial results ending on 31.12.2021 (12 months).

The operational profit during the current period amounted to SR2.19 billion, compared to SR1.9 billion during the corresponding period of the previous year, a growth of 13%.

The gross profit during the current period, it amounted to SR2.9 billion, compared to SR2.5 billion during the same period last year, an increase of 15%.

Profits per share during the current period amounted to SR1.14, compared to SR1.37 during the same period last year.

The reason of the increase (decrease) in the net profit during the current year compared to the last year is:

Net profit for the year ended 31 December 2021 was SR759 million compared to SR883 million for the year ended 31 December 2020. This decrease was mainly driven by the recognition of share-based payments expense related to the IPO, which was disclosed in the Company’s IPO Prospectus; recognition of the long-term incentive plan expense; an increase in Zakat and tax charge; and a net 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 and an impairment loss, partly offset by positive results from new projects which started operating in 2021.

The impact of the above was partly offset by higher development and construction management services revenue following several projects achieving financial close and higher operation and maintenance income on account of projects achieving their initial or project commercial operation dates.

The company said that certain prior period figures have been re-classified to conform with the presentation in the current period.

In addition to its audited consolidated financial statements, the Company provides to its investors supplementary financial analysis through a Year-end Investor Report that includes a comprehensive management discussion and analysis of the financial results and the position of the Company in addition to other operational and business performance metrics. This report is a voluntary initiative by the Company and should be read in conjunction with the Company’s audited consolidated financial statements for the subject period. Investors can access the 2021 Year-end Investor Report below in the Attached Documents section as