ACWA Power, one of the leading developers of power generation and desalinated water plants worldwide, has announced its results for the third quarter 2021
Operating income before impairment loss and other expenses was US$44 million for the first nine months of 2021, flat versus the same period in 2020, mainly supported by g operations and maintenance (O&M) business that generated higher operating income thanks to projects starting operations or operating their first full year in 2021, such as Al Dur IWPP and Hassyan IPP.
Three projects, namely, Sudair, Sirdarya and Redstone, which completed their respective financial closes during the period, contributed into higher operating income, which was offset by recognition of employee long-term incentive plan expense and lower share in net results of equity accounted investees, net of tax, mainly because of accelerated depreciation on two oil fired assets.
Net profit attributable to equity holders of the parent for the first nine months of 2021 was US$111mn and lower by 51% than the same period of 2020. The decrease was mainly driven by flat operating income reduced by the one-time charge of US$74mn in the third quarter pertaining to the grant and recognition of IPO incentive plan comprising shares and cash benefits for eligible employees, in line with the company?s plans announced at the time of IPO and additional impairment charges.
ACWA Power?s commitment to net-zero emissions by 2050 was exemplified by the entry into a sale agreement of one of the four oil-fired assets in its portfolio. This transaction is also a testament to the company?s commitment to remain at the forefront of energy transition both at home in Saudi Arabia and beyond.
Paddy Padmanathan, CEO, ACWA Power, said, ?Our results for the third quarter demonstrate that we are on track towards achieving our business and financial targets as set forth in our Prospectus for the fiscal year 2021. This also provides us with a solid basis for growth, which is our top priority following ACWA Power?s landmark listing on the Saudi Stock Exchange, which was oversubscribed by an overall factor of 250 times.?
As of 30 September 2021, ACWA Power?s portfolio comprised 65 power and/or desalinated water projects in 13 countries, with an estimated project cost of US$67bn.