Despite the decline in its revenues, ACWA Power Saudi Arabia achieves profits exceeding 40 million dollars - Energy

The international water and energy company, ACWA Power Saudi Arabia, continues its strong growth rates, as it achieved profits during the first quarter of the current year 2022, thanks to short and long-term strategies and plans.

During the first quarter, the giant Saudi company achieved net profits of 151.85 million Saudi riyals ($40.5 million), an increase of 9.2% over the profits for the same period last year, which amounted to 139 million Saudi riyals ($37 million), according to the company’s statement via her website.

ACWA Power’s strong profits came, despite the decline in its revenue, as it achieved 1.17 billion riyals (312 million dollars) during the first quarter of this year, an increase of 5.13% over the same period of 2021, in which it recorded 1.24 billion riyals ($ 330.5 million). .

Reasons for declining revenue

Aqua Power
Part of the work of ACWA Power Saudi Arabia – photo from “Middle East Online”

The Saudi ACWA Power Company explained the decline in revenues as due to the decrease in the revenues of construction and development management services from the same quarter of 2021, along with the decrease in financial leasing revenues due to the suspension of some projects in Morocco, and the increase in foreign exchange losses due to the depreciation of the Moroccan currency and the increase in zakat and taxes fees.

The company explained that the reason for the increase in net profit during the first fiscal quarter is due to the increase in operating income and compensation for damages recovered from one of the projects, in addition to the increase in other revenues due to the interest income on the shareholder loan provided to an investee company.

Gross profit and income

The company’s total profit decreased, during the first fiscal quarter of 2022, to 611.2 million riyals (162.9 million dollars), compared to 661.4 million riyals (176.3 million dollars) in 2021, a decrease of 7.5%.

In contrast, total comprehensive income rose to 1.85 billion riyals ($493 million) in the first quarter of 2022, compared to 1.18 billion riyals ($314.5 million) in the same period last year.

Total shareholders’ equity increased by 90% in the first quarter of 2022, to 15.3 billion riyals ($4 billion), compared to 8 billion riyals ($2 billion) over the same period last year.

ACWA Power Projects

ACWA Power Saudi Arabia is participating in the expansion of the power generation network in Morocco, by building a high voltage line (225 kV) with a length of 26 km, with the aim of connecting the Nour El-Ayoun station and a medium voltage line (22 kV) with a length of 12 km to connect the Noor Boujdour plant.

The Saudi company is also participating in the Noor 1 photovoltaic energy program, from the Noor 4 plant project with a capacity of 72 megawatts in the Moroccan city of Ouarzazate, the Noor project with a capacity of 85 megawatts, and the Noor Boujdour project with a capacity of 20 megawatts.

ACWA Power was established in 2004 in the Saudi capital, Riyadh, as it is considered one of the most important developers, investors and operators of power generation, power and water desalination plants, in addition to green hydrogen production plants.

The company, which is listed on the Saudi Tadawul market, employs about 3,500 people, and has branches in about 12 countries in the Middle East, Africa, Central Asia and Southeast Asia.

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