ACWA Power (2082) Q4 2024 earnings summary

Executive summary

• Achieved significant portfolio growth in 2024, adding 14.3 GW of new capacity and 0.4 million m³/day of desalination, with 3.8 GW and 76,000 m³/day brought into commercial operation and a further 10 GW added in early 2025.

• Entered new markets, including China, and established a hydrogen bridge to Europe, with a strong pipeline of advanced projects.

• Formed strategic partnerships with Japanese, Korean, Kuwaiti, Qatari, Italian, Egyptian, and Turkish entities.

• Quadrupled investment in people development, expanded internal succession, and reduced attrition rates by over 46%.

• Maintained world benchmark levels in power and water fleet availability, despite operational issues in Morocco and the Emirates.

Financial highlights

• Net income increased by nearly 6% year-over-year, with a compounded annual growth rate of 32% since 2021; net profit for 2024 was SAR 1,757M, up 5.7%.

• Adjusted net income for 2024 was SAR 1.3 billion, reflecting several non-recurring items and a 17% year-over-year decline.

• Operating cash flow remained strong at SAR 2.8 billion, with total cash inflows of SAR 4 billion and a closing cash balance of SAR 2.5 billion.

• Net debt to EBITDA improved to 6.3x, with parent net debt at SAR 18,072M and net debt to POCF ratio at 6.36x.

• Capital recycling initiatives, including three divestments, contributed SAR 400 million in additional impact compared to 2023.

Outlook and guidance

• Confident in achieving SAR 250 billion AUM by 2030, with 80% AUM growth in the past two years and a plan to triple by 2030.

• Targeting completion of a capital raise in Q2 2025, with rights issue application submitted.

• Short-term pipeline includes 4.1 GW power and 0.5 million m³/day water projects, with 12 GWh BESS, across 15 countries.

• Expecting continued growth in recurring fees and operating income as new assets come online.

• Ongoing cost optimization and financial optimization initiatives expected to improve margins over the next 12–18 months.