Acwa Power · TADAWUL:2082
Acwa Power — FY2022 Earnings Presentation
19 slides from Acwa Power's earnings presentation, Mar 2, 2023
Slide 1: Earnings Call Presentation, fiscal year ended 31 December 2022
ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com ACWA Power Company March 2023 Earnings Call Presentation For the fiscal year ended 31 December 2022 2 March 2023
Slide 2: Disclaimer
Disclaimer This document and the information contained therein (the "Information") has been prepared by ACWA POWER Company (the "Company“ or “ACWA Power”) for background purposes only and does not purport to be full, accurate or complete. No reliance may be placed for any purpose on the Information
Slide 3: 2022 in the rear-view mirror
2022 in the rear-view mirror Robust financial • Operating profit1, SAR2.61B, +14% results • Adjusted net profit2, SAR1.58B, +32% • Reported net profit3, SAR1.54B and EPS4, SAR2.11/share, +103% ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com Added record high • 5 PPAs, +5,440MW,
Slide 4: Very productive year for financial optimization
Very productive year for financial optimization New debt raised • 2nd tranche of Sukuk, raised SAR1.8B (Feb’23) • 2.24x oversubscribed • Very competitive pricing ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com Capital recycling • Partial divestment of Sirdarya CCGT and DEWA V PV
Slide 5: Not a proud one for workspace safety and reliability of supply
Not a proud one for workspace safety and reliability of supply Workplace safety • 80 million manhours; LTIR of 0.021 (2021: 0.011), maintaining very low levels • Unfortunate accidents despite all the emphasis on a zero- harm environment ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapowe
Slide 6: NEOM Green Hydrogen Project ("NGHP")
NEOM Green Hydrogen Project (“NGHP”) NEOM Green Hydrogen Company (“NGHC”) is the project company, equally owned by ACWA Power, Air Products and NEOM Company, to develop, operate and maintain a green hydrogen and green ammonia facility in NEOM City, Saudi Arabia. • 30-year green ammonia offtake contr
Slide 7: Looking ahead into 2023
Looking ahead into 2023 • Safety first: Zero-harm environment • Reliability of supply… keep the plants running ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com (and generating income and cash) • Complete the lined-up FCs and achieve ICOD/PCODs • Add new capacity by winning bids a
Slide 8: Financial Results
ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com Financial Results
Slide 9: Robust financial results
Robust financial results Financial closes and projects Higher op. inc. and divestment, Higher inflows due to refinancing brought online optimization and divestment Plant outages Higher finance charges Operating income before Adjusted net profit attributable to equity Parent operating cash flow (POCF
Slide 10: Projects brought online
Projects brought online In 2022, incremental 1.8GW of power and 1.1 million m3/day of desalinated water capacity came online. ICOD/PCODs Project Time Incremental Total online Remaining to capacity capacity bring online1 ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com Shuaa Energ
Slide 11: Financial closes achieved
Financial closes achieved In 2022, three projects achieved financial close. In February 2023, NEOM Green Hydrogen Company announced dry financial close of USD6.3 billion non-recourse project financing. ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com Financial closes Project Time
Slide 12: Operating income before impairment loss and other expenses
Operating income before impairment loss and other expenses Operating income before impairment loss and other expenses for 2022 was SAR 2,614 million and 13.5%, or SAR 311 million, higher than SAR 2,303 million of 2021. Lower income from projects due to: - extended outages (Morocco and KSA) - episodi
Slide 13: Adjusted net profit
Adjusted net profit1 • Adjusted Net Profit for 2022 was SAR 1,575 million, and 32%, or SAR 381 million, higher than SAR 1,194 million of 2021. • As communicated at the time of the IPO, company’s adjustments to its reported consolidated net profit have reduced both in number and value significantly s
Slide 14: Consolidated net profit (Reported net profit)
Consolidated net profit (Reported net profit) Reported Net Profit for 2022 was SAR 1,540 million and 103%, or SAR 781 million, higher than SAR 759 million of 2021. Higher finance charges mainly due to Rabigh 3 coming online ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com Mainly
Slide 15: Adjusted net profit by building block
Adjusted net profit by building block FY FY SAR Millions (M) 2022 2021 Change Major drivers • Higher development fees on account of projects achieving FC Development and A • Additional service (project and construction management) fees, which construction 804 653 150 are recognized during the constr
Slide 16: Parent operating cash flow
Parent operating cash flow POCF for 2022 was SAR 4,162 million and 158%, or SAR 2,550 million, higher than SAR 1,612 million of 2021, mainly on account of higher cash inflows by SAR 2,510 million. Full year (12M) ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com SAR in millions Pa
Slide 17: Uses of cash
Uses of cash Net of the SAR 470 million collection of a Limited Notice to Proceed (LNTP) advance, the Company’s uses of cash during 2022 amounted to SAR 4,718 million (SAR 5,188 million gross uses of cash). ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com In UAE, Saudi Arabia, So
Slide 18: Leverage and parent net debt
Leverage and parent net debt Long–term financing and funding facilities Parent-Level Net Leverage As at 31 Dec 2022, SAR million (M) SAR million (M) Non-recourse debt Recourse debt EBLs, Equity LCs and guarantees, other equity commitments; symmetrical call and put options (4,297) entered in by the C
Slide 19: Q&A
ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com Q&A ACWA Power Company March 2023 Earnings Call Presentation For the fiscal year ended 31 December 2022 2 March 2023