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 China, tripled business development activities, and advanced green hydrogen projects, including a hydrogen bridge to Europe and projects in Uzbekistan.

• 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 HSE and fleet availability, despite reporting three fatalities in 2024.

Financial highlights

• Net income increased by 5.7% year-over-year to SAR 1,757M, with a four-year CAGR of 32% since 2021.

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

• Parent operating cash flow rose 16% to SAR 2,842M; total cash at year-end SAR 2.5 billion.

• Operating income impacted by capital recycling (SAR 400 million gain), divestments, and cost initiatives.

• Capital raise via rights issue application submitted, transaction expected in Q2 2025.

Outlook and guidance

• Targeting SAR 250 billion in assets under management by 2030, with strong confidence in achieving this goal.

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

• Expect continued growth in recurring fees and capital recycling, with a shift from upfront to recurring revenue streams over the next three years.

• Ongoing cost optimization initiatives expected to improve margins within 12–18 months.

• Financial close for major projects in Egypt targeted for 2026, with green ammonia and hydrogen projects progressing.