ACWA Power turns profitable, records profits of SR342 mln during Q3

ACWA Power recorded a net profit after zakat and tax of SR342 million during the third quarter, compared to a loss of SR27 million in the same quarter of last year.
This came after the announcement on Thursday of the preliminary financial results for the period ending on September 30, 2022 (9 months).
The operational profit amounted to SR653 million in the third quarter, compared to SR605 million in the same quarter of the previous year, a growth of 8%.
The gross profit amounted to SR695 million in the third quarter, compared to SR708 million in the same quarter of the previous year, an increase of 2%.
The net profit after zakat and tax in the 9-month period amounted to SR883 million, compared to SR1.420 million in the same period last year, an increase of 110%.
Profits per share in the current period amounted to SR1.21, compared to SR0.65 in the same period last year.
The reason for 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 third quarter of 2022 compared to the corresponding quarter of 2021 is mainly due to:
• Higher development cost, provision and write-offs during the corresponding quarter of 2021;
• Lower impairment loss and other expenses during the current quarter mainly due to share-based payment expense that was recognized in the corresponding quarter of 2021 following successful IPO;
• Increase in other income mainly due to gain on change in fair value of derivatives;
• These were partly offset by an increase in deferred tax charges mainly on account of the devaluation of the Moroccan Dirham against the USD; higher financial charges; and lower revenues and share in net results of equity accounted investees, due to outages in certain plants.
The reason for the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is:
The decrease in net profit attributable to equity holders of the parent for the third quarter of 2022 compared to the second quarter of 2022 is mainly due to:
• Higher financial charges; and lower share in net results from equity-accounted investees due to outages in certain plants;
• These were partly offset by higher other operating income and other income complemented by improved gross profit and lower development cost, provisions and write offs.
The reason for 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 nine months of 2022 compared to the same period in 2021 is mainly due to:
• Lower development cost, provision, and write-offs during the current period;
• Lower impairment loss and other expenses during the current period mainly due to share-based payment expense that was recognized in the corresponding period of 2021 following successful IPO;
• Increase in other operating income and other income mainly due to higher interest income and a gain on change in fair value of derivatives;
• These were partly offset by an increase in a deferred tax charge on the main account of the devaluation of the Moroccan Dirham against the USD; and lower revenues due to outages in certain plants.
Certain prior period figures have been re-classified to conform with 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 nine months periods ended 30 September 2022, along with the CEO’s letter to shareholders. The company will hold an investor conference call on November 3, 2022, following the close of trading on Tadawul.