Saudi Arabia’s ACWA Power, partly owned by the sovereign Public Investment Fund (PIF), posted a 78% year-on-year (YoY) surge in Q1 2023 net profit to 270 million riyals ($72 million) on higher other income and lower zakat.

However, the effort vastly undershot analysts’ mean forecast of SAR 533 million, according to data provider Refinitiv.

On a sequential quarter basis too, the latest earnings came in 59% lower.

Earnings per share came in at SAR0.37 versus SAR0.21 in the year-earlier period, the utility provider said in a regulatory filing to Riyadh’s Tadawul exchange on Wednesday.

The utility was credit overall by SAR 26 million on Zakat and tax charge mainly due to recognition of a deferred tax credit during the period on account of foreign currency fluctuations in Morocco.

Other income rose by SAR 21 million due mainly to higher income earned on deposits and gain on change in fair value of derivatives.

These increases were partially offset by higher finance charges due to higher market interest rates together with increased finance costs from additional debt mainly pertaining to the second tranche of sukuk issued in February 2023, the statement sa




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