Prime Highlights
- ACWA Power Revenue Jumps to SAR4.03 Billion in First Half
- Net profit fell 28% to SAR653.2 million due to lower other operating income and higher expenses.
Key Facts
- ACWA Power is a Saudi utility company focused on power generation, water desalination and related infrastructure.
- Shareholders’ equity rose 39.9% to SAR30.04 billion by the end of June 2026.
Background
Saudi power utilities company ACWA Power posted an inconsistent first-half result with an increase in revenue, although net profit was down because of lower gains from its investments.
Revenue for the six months ended June 2026 rose to SAR4.03 billion, supported by higher energy sales, stronger operation and maintenance services revenue and income from the sale of shared facilities.
However, net profit fell 28% to SAR653.2 million from SAR909 million a year earlier. The company said lower contributions from equity-accounted investees reduced other operating income and offset the improvement in revenue.
Gross profit increased 3.7% to SAR1.9 billion, while operating profit declined 34.6% to SAR1.44 billion. The company said the results were also affected by the absence of higher performance-related liquidated damages and insurance income recorded in the previous year.
Lower finance costs and higher finance income partly reduced the impact on earnings. Shareholders’ equity attributable to owners increased 39.9% to SAR30.04 billion at the end of June from SAR21.47 billion a year earlier.
In the second quarter, revenue rose 15.1% year-on-year to SAR2.01 billion, while net profit attributable to shareholders fell 36% to SAR308.4 million.
Quarterly profit also declined 10.5% from the previous quarter, while revenue was broadly stable, falling 0.5%. ACWA Power attributed the decline to weaker contributions from equity-accounted investees, lower other operating income and higher general and administrative costs.
The company also faced lower engineering, procurement and construction services revenue, operational outages at power assets and higher impairment charges during the quarter.
