ACWA Power’s H1 2022 profit up 21% to SAR 541.7 mln; Q2 at SAR 389.9 mln

ACWA Power Co.’s H1 2022 net profit after Zakat and tax jumped 21% to SAR 541.7 million, from SAR 446.9 million a year earlier.

The utility provider cited an increase in its net profit share from equity-accounted investees mainly due to new projects that commenced operations subsequent to June 30, 2021, along with higher other operating income on recognition of performance liquidated damages.

ACWA Power also reported a rise in other income due to higher interest income earned on deposits.

However, these were partly offset by an increase in Zakat and tax charges mainly due to higher deferred tax expenses as a result of devaluation of the Moroccan dirham against the US dollar, lower finance lease income due to outages of certain projects in Morocco, and recognition of loss on disposal for the sale of an equity accounted investee.

In Q2 2022, net profit after Zakat and tax rose by 27% to SAR 389.9 million, from SAR 307.85million in the prior-year period, thanks to an increase in the company’s net profit share from equity-accounted investees, lower impairment losses and other expenses, and higher other income.

Compared to Q1 2022, net profit more than doubled from SAR 151.85 million on better other income.

Shareholders’ equity, after minority interest, stood at SAR 16.581 billion as of June 30, 2022, up from SAR 8.173 billion a year earlier.

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