- Profit: ACWA Power’s profit for 2Q was 630.6 million riyals, a 52% increase year-over-year, beating the estimated 454.5 million riyals.
- Revenue: Revenue reached 1.56 billion riyals, up by 11% year-over-year, but below the estimated 1.72 billion riyals.
- Operating Profit: Operating profit increased by 36% year-over-year to 990.2 million riyals.
- Reasons for Profit Increase:
- Higher operation and maintenance revenue.
- Increased revenues from development business and construction management services.
- Gains from divestment and higher share in net results of equity accounted investees.
- Higher finance income.
- Challenges:
- Higher project development costs.
- Increased general and administrative expenses.
- Higher finance charges.
- Higher tax charges.
- Analyst Recommendations: 0 buys, 1 hold, and 5 sells.
A look at ACWA Power Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts foresee a promising long-term trajectory for ACWA Power based on the Smartkarma Smart Scores. With a strong momentum score of 5, the company is gaining significant traction in the market, indicating a positive outlook for future growth and performance. Additionally, ACWA Power scored a solid 4 in growth, highlighting its potential for expansion and development in the coming years. These factors position ACWA Power favorably for sustainable success in the utility services sector.
Despite some areas for improvement in value, dividend, and resilience scores, ACWA Power remains well-positioned to capitalize on its strengths and drive value for its stakeholders. The company’s focus on seawater desalination and power generation projects has garnered attention globally, solidifying its reputation as a key player in the industry. ACWA Power’s consistent efforts to serve customers worldwide underscore its commitment to delivering reliable utility services while striving for continuous innovation and growth.
**Summary of ACWA Power:** International Company for Water and Power Projects provides utility services, specifically in seawater desalination and power generation projects. With a global customer base, ACWA Power is known for its commitment to delivering reliable services and its focus on innovation in the utility sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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