ACWA Power Profits Increase to SR390 mln during Q2, up 27%

The net profit after zakat and tax for ACWA Power grew to SR390 million during the second quarter, compared to SR308 million in the same quarter of last year, at a rate of 27%.

This came after announcement on Thursday the preliminary financial results for the period ending on 30.06.2022 (six months).

The operational profit amounted to SR642 million in the second quarter, compared to SR629 million in the same quarter of the previous year, an increase of 2%.

The net profit after zakat and tax in the 6-month period amounted to SR542 million, compared to SR447 million in the same period last year, an increase of 21%.

The gross shareholders’ equity “without minority rights” amounted to SR16.58 billion in the current period, compared to SR8.17 billion in the same period last year, a growth of 103%.

Profits per share in the current period reached SR0.74, compared to SR0.69 in the same period last year.

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

The increase in net profit attributable to equity holders of the parent for the second quarter of 2022 compared to corresponding quarter of 2021 is mainly due to:

• Increase in share of net income from equity accounted investees mainly on account of new projects that commenced operations subsequent to 30 June 2021;
• Lower impairment loss and other expenses mainly due to goodwill impairment that was recognised in the corresponding quarter of 2021;
• Increase in other income due to higher interest income earned on deposits in addition to finance income from a related party and gain on change in fair value of derivatives;
• These were partly offset by an increase in Zakat and tax charge mainly due to higher deferred tax expense as a result of devaluation of the Moroccan Dirham (MAD) against the USD.

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

The increase in net profit attributable to equity holders of the parent for the second quarter of 2022 compared to first quarter of 2022 is mainly due to:

• Increase in share of net income from equity accounted investees mainly due to full period operations of certain projects which commenced operations during the first quarter of 2022, combined with higher productivity in certain projects;
• Increase in other income mainly due to gain on fair value of derivatives;
• These were partly offset by a decrease in other operating income mainly due to recognition of performance liquidated damages recovery during first quarter of 2022.

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

The increase in net profit attributable to equity holders of the parent for the first six months of 2022 compared to the same period in 2021 is mainly due to:

• Increase in share of net income from equity accounted investees mainly on account of new projects that commenced operations subsequent to 30 June 2021;
• Increase in other operating income mainly as a result of recognition of performance liquidated damages;
• Increase in other income due to higher interest income earned on deposits in addition to finance income from a related party and gain on change in fair value of derivatives;
• These were partly offset by an increase in Zakat and tax charge mainly due to higher deferred tax expense as a result of devaluation of the Moroccan Dirham (MAD) against the USD; lower finance lease income due to outages of certain projects in Morocco; and recognition of loss on disposal for the sale of an equity accounted investee.

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

A comprehensive Investor Report comprising the Company’s interim condensed consolidated financial statements and the independent auditor’s review report for the three and six months periods ended 30 June 2022, along with the CEO’s letter to shareholders and a management discussion and analysis of the financial results, is available on ACWA’s Power’s Investor Relations website at https://acwapower.com/en/investor-relations/overview/ .