ACWA Power (2082) Q2 2024 earnings summary

Executive summary

• Reported strong financial and operational results for 6M2024, with significant portfolio and project pipeline growth, including major contract signings and expansion in green hydrogen.

• Achieved over 10 GW added to the portfolio, totaling SAR 37 billion, and signed a 5GW wind + BESS PPA in Uzbekistan and three large-scale PV solar PPAs in Saudi Arabia, increasing the PIF pipeline to 13.7GW.

• Monetized minority stakes in two projects, raising SAR 844 million from RAWEC and reducing shareholding in two Uzbekistan wind projects; divestment of Bash & Dzhankeldy assets contributed SAR 400 million to operating income.

• Emphasized safety improvements, though noted a fatality in July at a remote Uzbekistan site, prompting enhanced safety measures.

• Signed MOUs in Tunisia and Egypt for green hydrogen and secured major PV module supply agreements.

Financial highlights

• Operating income for 6M2024 was SAR 1,389 million, up 7.8% year-over-year; net profit attributable to equity holders was SAR 927 million, a 35.5% increase from 6M2023.

• Adjusted net profit for 6M2024 was SAR 723 million, up 5.6% year-over-year, excluding one-off provisions and hedge terminations.

• Parent operating cash flow for 6M2024 reached SAR 544 million, a 24% increase year-over-year; closing cash balance at SAR 4,294 million.

• Achieved three financial closes totaling SAR 18 billion, compared to SAR 34.7 billion in the same period last year.

• Dividend of SAR 329 million paid for 2023; bonus shares issued and rights issue of SAR 7,125 million proposed.

Outlook and guidance

• Plans to triple assets under management by 2030, with a 19% CAGR expected from 2024–2030 and annual equity commitments projected at SAR 3.8–4.9 billion.

• Capital increase of $1.9 billion (SAR 7.1 billion) proposed and approved by the board, with EGM expected no earlier than November.

• No plans for quarterly dividends; annual distribution to be announced post-capital raise.