ACWA Power’s Profits Surge to SAR 1.66 Billion by End of 2023, Up by 8%

ACWA Power’s net profit for the year ending December 31, 2023, surged to 1.66 billion riyals, marking a 7.9% increase from 1.54 billion riyals recorded in the preceding year. This notable growth was announced alongside today’s release of the annual financial results for the same period.

Operating profit soared to 2.98 billion riyals during the year ending December 31, 2023, up significantly from 2.61 billion riyals in the previous year, reflecting a robust 14.1% rise.

Total ownership rights, after excluding non-controlling interests, stood at 19.15 billion riyals last year, compared to 18.65 billion riyals in the preceding year, indicating a 2.6% increase.

Earnings per share for the year reached 2.27 riyals, up from 2.11 riyals in the previous year.

ACWA Power group’s consolidated revenue for the year ended 2023 amounted to SAR 6,095 million, showing a substantial increase of SAR 819 million or 15.5% compared to the year ended 2022. This growth was primarily driven by higher contributions from existing projects, attributed to improved plant availability, along with increased revenue from operation and maintenance due to projects achieving ICOD/PCODs during 2022/2023 and higher contributions from development and construction management fees.

The increase in net profit attributable to equity holders of the parent by SAR 122 million or 7.9% for the year ended 2023 compared to the year ended 2022, is primarily due to higher operating income from existing projects, driven by better plant availability and new contributions from projects that commenced operations during 2022/2023. Additionally, there were higher development and construction management fees, partially offset by lower performance liquidated damage and insurance recoveries, as well as higher corporate general and administration expenses.

• Further, this was supported by lower zakat and tax charges and lower impairment loss and other expenses.

The above favorable variance was partially offset by:

• Higher financial charges (net of finance income), including exchange loss, lower capital recycling gains, lower other income, and higher share of non-controlling interest.

The consolidated financial statements of the Group for the year ended 31 December 2022 were audited by another auditor who expressed an unmodified opinion on those consolidated financial statements issued on 1 March 2023.