ACWA Power mulls 20 projects locally, abroad: CFO

ACWA Power’s CFO Abdulhameed Al-Muhaidib

ACWA Power’s CFO Abdulhameed Al-Muhaidib said the company is currently studying more than 20 projects inside and outside Saudi Arabia, with work underway on the selection of several of these projects to be closed financially this year, in addition to signing energy purchase agreements.

Al-Muhaidib told Asharq TV that the company's gross assets amounted to SAR 51 billion in the first quarter of 2023. Meanwhile, borrowing reached SAR 30 billion, of which SAR 14 billion are right-to-return loans.

Under ACWA Power's business model, projects are under construction at fixed interest rates, or the company hedges at a rate of up to 90%. As for already operating ones, the hedging rate is usually 70% or more. Meanwhile, 70% of funding for projects that are under operation has a hedge ratio at a fixed rate, the CFO added.

The official pointed out that the company's total available cash is in the form of short- and long-term deposits, which are reserved until the company embraces the right opportunity to exploit them as a growth share in new projects.

ACWA Power has 45.8 megawatts (MWs) of energy, 41% of which is clean energy. It also has 6.8 million cubic meters of water desalination projects, said Al-Muhaidib.

He also indicated that the company is working on a strategy of seizing opportunities in addition to expansions and acquisitions. It is also carefully studying potential procurement options, be it entering new projects or acquiring existing ones.

ACWA Power posted a 78% rise in Q1 2023 profit to SAR 269.7 million, compared to SAR 151.9 million profit in the same period last year, Argaam's data showed.