Alkhorayef Water and Power Technologies Company (AWPT) has secured a major contract valued at $58.6 million (220 million Saudi riyals) to expand and upgrade a tertiary treatment plant in Dammam.
The contract, awarded to Alkhorayef Water and Power Technologies by a government entity, entails increasing the plant’s capacity by 125,000 cubic meters per day and rehabilitating the existing facilities.
The financial impact of this contract is projected to be reflected in the company’s financial results by the first quarter of 2025.
This comes on the heels of a series of major contracts for Alkhorayef Water. In July, the company was awarded six blanket purchase agreements worth $51 million from the National Water Company (NWC) to install new water and wastewater connections.
Earlier in May, Saudi Arabia’s National Water Company awarded Alkhorayef Water and Power Technologies, along with a consortium consisting of Civil Works Company (CWC) and Alawael Company, three substantial long-term contracts totaling more than SAR 3.56 billion ($948 million).
These contracts involve the rehabilitation, operation, and maintenance of nine sewage treatment plants (STPs) across the Eastern Province of Saudi Arabia for a period of 15 years.
Under these agreements, Alkhorayef Water will focus on rehabilitating, operating, and maintaining STPs in Al Ahsa, while the CWC-Alawael consortium will manage plants in Dammam and Al Khobar.
The contracts are part of Saudi Arabia’s national water strategy, which aims to attract private sector investment to enhance the management and operation of the Kingdom’s critical water infrastructure, aligning with environmental sustainability goals.
The NWC contract for the Al Ahsa STPs is valued at SAR 1.72 billion ($460 million) with a levelized tariff of SAR 0.67 per cubic meter (about $0.18), while the contract for Dammam STPs stands at SAR 1.04 billion ($280 million) with a levelized tariff of SAR 0.57 per cubic meter.
The Khobar STP contract is worth SAR 791 million ($210 million) with a levelized tariff of SAR 0.56 per cubic meter ($0.15).
In addition to these contracts, Alkhorayef Water and Power Technologies recently signed a SAR 1.72 billion ($458 million) agreement with the NWC for the operation and maintenance of sewage treatment plants in Al Ahsa City.
The long-term agreement includes managing three existing plants and one new facility, with the rehabilitation process set to occur in two phases over 36 months.
Tassnief, a leading credit rating agency, has maintained a long-term rating of “A-” and a short-term rating of “T-3” for Alkhorayef Water and Power Technologies. The ratings reflect the company’s strong credit profile, supported by robust business fundamentals, a substantial order backlog, and a well-established market position in the water infrastructure sector.
The ratings also consider the company’s effective governance, experienced management team, and solid financial standing.
The company’s financial profile remains strong, characterised by growing profitability, manageable leverage, and robust financial flexibility. Despite some historical challenges with cash flow conversion, recent improvements indicate a positive trend.
The ratings also incorporate leading market position in critical segments of the water infrastructure industry, supported by strong revenue visibility and a robust order backlog, indicative of sustained revenue growth momentum.
Alkhorayef Water and Power Technologies, a publicly listed Saudi joint stock company based in Riyadh, specialises in the implementation and operation of water and wastewater infrastructure.
With a workforce of 7,500 employees and a Saudisation ratio of 18%, the company is well-positioned to continue contributing to Saudi Arabia’s water management and infrastructure development.
The company is engaged in the contracting, operation, and maintenance of water and wastewater infrastructure, offering integrated solutions for stormwater management, city water management, and support services.
The company’s financial statements for 2023 and the first half of 2024 have been audited by KPMG Professional Services with an unqualified opinion.
