ACWA Power (2082) Q2 2024 earnings summary

Executive summary

• Reported strong financial and operational results for H1 2024, with significant portfolio growth, major contract signings, and progress on strategic initiatives including green hydrogen MOUs in Tunisia and Egypt.

• Operating and net income, as well as parent cash, increased compared to 6M2023, reflecting growth across all KPIs.

• Added over 10 GW to the portfolio, reaching SAR 37 billion in new projects, and signed major PV module supply agreements.

• Monetized minority stakes in two projects, raising SAR 844 million, and completed bonus share distribution and share buybacks.

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

Financial highlights

• Operating income for H1/6M 2024 was SAR 1,389 million, up 7.8% year-over-year; net profit was SAR 927 million, up 35.5%.

• Adjusted net profit for H1/6M2024 was SAR 723 million after excluding one-offs, up 5.6% year-over-year.

• Achieved SAR 18 billion in financial closes, down from SAR 34.7 billion last year due to a large one-off NEOM Green Hydrogen close in 2023.

• Parent operating cash flow reached SAR 544 million, a 24% increase year-over-year.

• Total period-end cash stood at SAR 4,294 million, up 6.3% from the prior year.

Outlook and guidance

• Targeting to triple assets under management by 2030, with a 19% CAGR expected from 2024-2030 and annual equity commitments projected at $2–2.5 billion.

• Rights issue/capital increase of SAR 7.1 billion ($1.9 billion) proposed to support growth, with EGM expected no earlier than November 2024.

• Dividend distributions to remain annual, not quarterly, due to capital deployment needs for growth.