A record year for ACWA Power backed by strong results for the full year ended 31 Dec 2023

Saudi-listed ACWA Power, the world’s largest private water desalination company, and a leader in energy transition and first mover into green hydrogen, todayannounced a record net profit of SAR 1,662 million in its financial results for the full year ended 31 Dec 2023. 

Supported by higher operating income, ACWA Power’s net profit—attributable to equity holders of the parent—has increased by 8% year-on-year. The increase was partially offset by lower capital recycling gains recognised and higher net financial expenses mainly on account of the new debt issuance to support growth and higher market rates.

“I am really proud of the ACWA Power team, who demonstrated once again our ingenuity to deliver sustainable, reliable and affordable access to energy and water and make an impact to all the communities we serve.” said Marco Arcelli, Chief Executive Officer, ACWA Power. 

“Our strong performance in 2023 is another step towards our ultimate goal to triple the size of our business by the end of the decade. With our continued focus on innovation, operational excellence, and strategic partnerships, we are doubling down on our efforts to lead the energy transition globally, while supporting Saudi Arabia to deliver one of the most ambitious decarbonisation programmes in the world under Vision 2030,” he added.

Commenting on the financial results, Abdulhameed AlMuhaidib, Chief Financial Officer, ACWA Power, said: 

"ACWA Power’s results in 2023 is a demonstration of our strong business model fundamentals and the resilience of our balance sheet against high interest rate and inflation environment. Robust earnings growth, supported by strong operational results, is a testament to the dedication of our team and the effectiveness of our strategic direction and portfolio diversification. This underscores our commitment to deliver stakeholder value with unprecedented growth and healthy returns."

Operating income—before impairment, loss and other expenses—for the full year of 2023 was 14% higher compared to the previous year and stood at SAR 2,984 million. Higher plant availability in existing assets with the successful roll-out of the reliability of supply programme, contributions from new projects with more assets achieving commercial operations and higher development and management fees were the main drivers behind the increase in the operating income. This was partially offset by higher corporate general and administration expenses and lower performance liquidated damages and insurance recoveries during 2023. 

The company recently announced its growth ambition to triple its assets under management by 2030. With 4 financial closes in the fourth quarter, ACWA Power has achieved a record total of 12 financial closes with a total funds raise of around SAR 60 billion in a single year, which includes the landmark Neom Green Hydrogen Project.

In the same period, the company has achieved another record by signing a total of 16 Offtake Agreements, including 13 Power Purchase Agreements with a total capacity of 10.7GW where over 66% of the new capacity is renewable. With this, ACWA Power’s total aggregate power capacity of the operational, under construction and in advanced development projects around 55GW, with over 24GW, or 44.5% of the total, in renewables. 2 Water Purchase Agreements were also signed, which added 1.4 million m3/day to the portfolio and bringing the total water desalination capacity to 7.6 million m3/day of desalinated water making ACWA Power the largest private water desalination company in the world.

The company broke ground for its second green hydrogen project in Uzbekistan in its drive to scale-up its first mover advantage in green fuels. 

The period also witnessed an increase in ACWA Power’s operating portfolio with 11 projects achieving partial or full commercial operations bringing around 5GW of power and 979,000 m3/day of desalinated water online.

ACWA Power’s consolidated financial statements for the full year ended 31 Dec 2023 issued by KPMG Professional Services (the company’s Certified Public Accountants), along with the Investor Report including a management’s discussion and analysis on the financial results, are available on the company’s Investor Relations page at http://acwapower.com/en/investor-relations/ 

The company will host a conference call discussing the financial results and business updates on Thursday 29 February 2024 at 16:00 KSA / 13:00 GMT.

-ends-