ACWA Power net profit up 78% to SAR 269.7 mln in Q1 2023

ACWA Power Co. posted a net profit of SAR 269.7 million in Q1 2023, a 78% increase from SAR 151.9 million a year earlier.

The positive performance was driven by higher operating income before impairment and other expenses mainly due to higher contributions from projects in existence, including plants that experienced outages in the same quarter of last year. This is in addition to contribution from new projects, including the respective maintenance and operation income, which achieved initial or commercial operation during or after Q1 2022.

This was partially offset by lower contributions from development and construction management services fees earned for projects and higher general and administration expenses in line with business growth.

During Q1 2023, the company also incurred lower Zakat and tax charges mainly due to recognizing a deferred tax credit during the period mainly on account of foreign currency fluctuations in Morocco.

Meanwhile, ACWA Power realized an increase in other income on higher income earned on deposits and gain on change in fair value of derivatives.

Sequentially, net profit fell 58.9% from SAR 656.61 million in Q4 2022.

Shareholders’ equity, excluding minority interest, stood at SAR 18.29 billion as of March 31, 2023, compared to SAR 15.33 billion a year earlier.

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