ACWA Power’s Q3 2023: Operating Income Up 25%, Net Profit Soars 22.5%

Representational image. Credit: Canva

ACWA Power, a leading publicly-listed company on the Saudi Arabian Tadawul stock exchange, has announced its financial results for the three and nine-month periods ending on September 30, 2023.


In the third quarter of 2023, the company achieved an operating income of SAR 814 million, representing a substantial 25% increase compared to the same period in the previous year. This growth can be attributed to higher income generated by new and existing operations, showcasing stable operational performance compared to the previous year. The quarter also saw an increase in general and administrative expenses and project development cost provisions, primarily due to increased business development activities. As a result, the operating income for the first nine months of 2023 reached SAR 2,103 million, marking a growth of 12.4% compared to the same period in 2022.


Year-to-date net profit attributable to equity holders of the parent increased by 22.5% compared to the first nine months of 2022, reaching SAR 1,082 million. The key driver behind this increase was the higher operating income, which was partially offset by the adverse impact of higher net financial charges resulting from increased market interest rates and the company’s additional Sukuk issuance in February this year.

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Abdulhameed Al Muhaidib, Chief Financial Officer of ACWA Power, expressed satisfaction with the company’s performance, stating, “We’re steadily progressing in achieving our 2023 targets with solid growth in projects achieving financial closes and others being commissioned and delivering energy and water to the end users. With the collaboration of our various business units, we hit our billion riyal bottom line in nine months, which is a fantastic achievement given the macroeconomic and geopolitical challenges surrounding us.”

ACWA Power’s business development activities have seen a significant boost in momentum during the third quarter of 2023. The company successfully closed financial deals for three solar PV projects and one desalination project in Saudi Arabia, with a total investment cost of SAR 11.1 billion (USD 3 billion). Two of these projects are part of Saudi Arabia’s renewable energy development program, with ACWA Power leading 70% of this initiative in partnership with the Public Investment Fund (PIF).

The quarter also witnessed the signing of the water purchase agreement for the Hassyan SWRO IWP in the UAE, setting a new world record for the lowest levelized tariff. Additionally, the 750 MW Group 1 of the 1,500 MW Sudair PV IPP in Saudi Arabia received its commercial operation certificate, marking a significant milestone in the PIF pipeline projects.

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Furthermore, ACWA Power successfully closed financial deals for Rabigh 4 IWP, Layla PV IPP, and Al Shuaibah PV 1 & 2 in Saudi Arabia. The company also signed several Memorandums of Understanding (MoUs) in Europe, China, and Indonesia, focusing on research and development (R&D) and engineering, procurement, and construction (EPC) endeavors as part of its 2030 growth strategy.

In October 2023, ACWA Power awarded two Combined Cycle Gas Turbine (CCGT) power plants, Taiba and Qassim, in Saudi Arabia with a combined capacity of 3.6 GW. The company also signed financing documents for a 240 MW Wind IPP in Azerbaijan. Furthermore, the 375 MW Group 2 of the 1,500 MW Sudair PV IPP received its commercial operation certificate, bringing the total online capacity to 1,125 MW.

ACWA Power’s recent financial results and its robust business development activities underscore the company’s commitment to expanding its operations and contributing to the global energy sector.

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