ACWA Power posts strong H1 2022 results, parent's net debt at SAR 8 bln: CEO

CEO Paddy Padmanathan

ACWA Power Co. managed to achieve strong financial results in the first half of 2022, said CEO Paddy Padmanathan.

In an interview with Al-Arabiya TV, the top executive said that the parent company’s net debt amounts to SAR 8 billion by the end of 2022, which is 2.8x cash flows.

He noted that ACWA Power is immune against rising interest rates, thanks to its business model that allows for borrowing at fixed rates, or for hedging on in the long run when borrowing.

The company has some sukuk exposure worth SAR 3 billion, leveraging a fixed lending rate over six months, he noted.

In April, Padmanathan said that the company needs nearly $10 billion loans annually to fund its projects, data complied by Argaam shows.

ACWA Power earlier posted SAR 541.7 million net profit for H1 2022, a rise of 21% compared to SAR 446.9 million in the year-ago period, according to Argaam's data.