ACWA Power reported a 1Q profit of 296.2 million riyals, showing a rise of +9.8% than the previous year.
The estimated profit was missed, which was around 548 million riyals.
Revenue decreased by -6% from the prior year, amounting to 1.25 billion riyals, against an estimate of 2.17 billion riyals.
The operating profit stood at 401.2 million riyals, marking a decrease of -28% on a year over year basis.
EPS (Earnings Per Share) increased slightly, from 0.37 riyals in the last year to 0.41 riyals this year.
Lower development and construction management fees were cited as factors contributing to earnings, primarily due to fewer projects.
A notable decline in finance lease income was attributed to a forced outage at one of the plants in Morocco.
No acquisitions of the company’s shares were observed, but 2 holds and 4 sells were recorded.
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
ACWA Power, an international company specializing in water and power projects, displays a strong long-term outlook based on its Smartkarma Smart Scores. With a high Momentum score of 5, the company is showing significant strength in terms of market performance and investor interest. This indicates a positive trend in the company’s stock price that is likely to continue in the future. Moreover, with a Growth score of 4, ACWA Power is positioned for expansion and development, highlighting its potential for sustained growth in the coming years.
Despite receiving relatively lower scores in Value, Dividend, and Resilience, ACWA Power’s overall outlook remains promising due to its robust performance in key areas such as growth and momentum. As an industry player that provides utility services globally, the company’s strategic focus on seawater desalination and power generation projects positions it well for continued success and market relevance in the long run.
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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