BAKU, Azerbaijan, May 9. Saudi Arabia-based ACWA Power company reported a net profit of SAR 427 million for the first quarter of 2025, marking a 44% increase—or SAR 131 million—compared to SAR 296 million in the same period last year, Trend reports via the company.
The strong performance was primarily driven by a significant rise in operating income before impairment loss and other expenses, which reached SAR 870 million in Q1 2025—an increase of 116.9%, or SAR 469 million, from SAR 401 million in Q1 2024. The boost stemmed mainly from higher income from development and construction management services, notably procurement margin and services income from ongoing projects (SAR 502 million). This was partially offset by a SAR 12 million provision/write-off for development costs.
Additionally, impairment losses were significantly lower year-on-year. The company recorded just SAR 7.4 million in impairment losses for Noor 3 CSP IPP in Morocco during Q1 2025, down from SAR 146 million a year earlier.
However, gains were partially offset by several headwinds:
A decline in other income due to the absence of a one-off gain recognized in Q1 2024 from the discontinuation of hedging instruments;
A mark-to-market loss of SAR 92 million on hedging instruments related to a project in Africa;
Higher financial charges (SAR 37 million) and an increase in share of profit to non-controlling shareholders (SAR 61 million), largely due to the RAWEC divestment and lower impairment charges;
These were slightly mitigated by lower Zakat and tax charges (SAR 67 million).
While operational projects posted higher income in aggregate, this was tempered by increased decommissioning costs tied to an oil-fired asset and elevated maintenance expenses.
