ACWA Power, a Saudi-listed giant in the water desalination and energy sectors, reported a robust 16% rise in profit for the first nine months of 2024, with net profit attributable to equity holders reaching SAR 1.25 billion ($334 million).
The impressive growth, according to the company, stems from significant project expansions, strategic investments, and capital gains from project restructuring.
Operating income before impairment losses and other expenses climbed to SAR 2.36 billion, up 12.5% from the same period last year. The increase was largely fueled by capital recycling gains and a major project restructuring, according to ACWA Power’s latest financial report.
CEO Marco Arcelli highlighted the company’s expansion trajectory, noting that ACWA Power’s project portfolio has now grown to 26 projects under construction — the largest in the company’s two-decade history. “Our construction portfolio exemplifies both the rapid financial progress we’ve achieved and the substantial future cash flows that a diversified, young portfolio can generate,” Arcelli stated.
He affirmed ACWA Power’s commitment to addressing operational challenges while prioritizing reliable, cost-effective energy and water access.
In the past nine months, ACWA Power secured financial closure for seven major projects, totaling SAR 31 billion ($8.3 billion). These include projects in Saudi Arabia, such as the Taiba and Qassim Combined Cycle Gas Turbine (CCGT) projects, as well as international ventures like the Tashkent Solar PV project in Uzbekistan and the Hassyan Seawater Reverse Osmosis (SWRO) plant in the UAE.
A standout achievement in 2024 has been ACWA Power’s progress in renewable energy. The company secured a landmark 5 GW Power Purchase Agreement (PPA) for the Aral Wind project in Uzbekistan, further cementing its presence in Central Asia. Additionally, ACWA Power finalized 5.5 GW of solar capacity agreements under Saudi Arabia’s Public Investment Fund’s (PIF) fourth-round projects, underscoring its role in supporting the Kingdom’s ambitious renewable energy targets.
One of the year’s milestones was the rapid construction of the 700 MW Ar Rass Solar PV project, which achieved completion in just 18 months. ACWA Power’s ability to deliver such large-scale projects at an accelerated pace highlights its operational efficiency and commitment to meeting the growing demand for clean energy in the region.
The company’s power generation capabilities have expanded by 2.4 GW in 2024, with 2.2 GW of projects achieving partial or full commercial operations within the first nine months. This additional capacity aligns with Saudi Arabia’s push towards renewable energy and signals ACWA Power’s growing role as a global leader in sustainable infrastructure.
On the water front, ACWA Power signed a Water Purchase Agreement (WPA) for the Hamriyah Independent Water Project (IWP) in the UAE, set to deliver 410,000 cubic meters of desalinated water per day. This project contributes to the UAE’s strategy to ensure water security and reduce environmental impact.
Abdulhameed Al-Muhaidib, ACWA Power’s Chief Financial Officer, expressed confidence in the company’s long-term financial sustainability. “Our diversified asset base, resilient business model, and continuous operational excellence give us the confidence in achieving sustainable financial performance over the long term,” Al-Muhaidib said. He highlighted the significance of the SAR 31 billion in project financial closures and the operational start of several projects, which are already generating substantial returns.
ACWA Power’s strategic investments and expansion in renewable energy, along with its proactive approach to financial restructuring, reflect its commitment to maintaining growth while navigating the complexities of energy markets.
As the world’s largest private water desalination company and a pioneer in green hydrogen, ACWA Power aims to play a central role in global efforts to achieve net-zero emissions. With its expanding project portfolio and increasing capacity across energy and water sectors, the company is set to remain a key player in sustainable development in the Middle East and beyond.
ACWA Power’s latest interim financial statements, certified by KPMG Professional Services, are available on the company’s Investor Relations page.
