Acwa Power reports record revenue and profit surge

Saudi Arabian energy company Acwa Power posted record revenue in the first quarter from higher returns on operations and development services as well as electricity and water sales.

Revenue jumped almost 60 percent to SAR1.97 billion, the publicly listed company said in a statement to the Saudi stock exchange.

This helped to underpin a 44 percent surge in net profit, which rose to SAR427 million ($114 million) in the three months to March 31. 

Acwa, whose largest shareholder is the Public Investment Fund, operates power and water desalination projects across the Middle East, Africa and in parts of Asia.

It is the largest provider of renewable energy in Saudi Arabia, helping the kingdom in its 2030 target to achieve renewable energy production of 130 gigawatts (GW) through a series of solar and wind power projects.

This quarter, Acwa signed a power and water purchase agreement with the kingdom to oversee a 3GW expansion to the Qurayah independent gas power plant, and 300,000 cubic metres per day of desalinated water via the Ras Mohaisen independent water plant.

It also announced projects in Kuwait, Azerbaijan, Egypt and Bahrain.

• Acwa Power bolsters renewables presence in China
• Acwa Power planning 15GW wind and solar projects
• Acwa Power to build 2GW wind power project in Egypt

“These initiatives not only lay the groundwork for stable and predictable revenue and cash flow in the future but also contribute meaningfully to our current financial performance through development, procurement, and construction management income,” CEO Marco Arcelli said in a quarterly investor report that accompanied its statement to the exchange.

The value of its investments topped $100 billion earlier this year to almost $108 billion.

Acwa Power is 44 percent owned by PIF. Its share price has declined by more than 25 percent in the last 12 months.