By: Utilities Middle East

Saudi-listed Acwa reported continued portfolio expansion and resilient operational performance during the first half of 2026, while net profit declined amid the timing of development, divestment and financial close activities.

Net profit reached SAR653 million for the first half, compared with SAR909 million during the same period in 2025.

Operating income before impairment losses and other expenses stood at SAR1.444 billion, down from SAR2.207 billion a year earlier.

Acwa said the first-half financial performance was influenced by the timing of several development, divestment and financial close activities, a number of which are now expected to progress during the second half.

Despite the weaker earnings, the company said its underlying operating portfolio remained resilient, supported by recurring income and strong cash generation from operational projects, including recently commissioned and acquired assets.

At the end of June, Acwa managed 111 assets across operations, construction and advanced development.

Its portfolio comprised 98.2GW of power generation capacity and 9.7 million cubic metres per day of water desalination capacity across 16 countries.

During the first half, the company added 5.2GW of power generation capacity and 0.6 million cubic metres per day of desalination capacity to its development pipeline.

Assets under management also increased by approximately SAR30 billion to around SAR475 billion.

“The first half of 2026 tested the pace of the market, and our response was to hold our direction and our discipline,” said Dr. Samir J Serhan, CEO of Acwa.

“We are not pursuing growth for its own sake; we are pursuing disciplined growth, with greater selectivity, execution excellence, and stronger lifecycle management as Acwa continues to scale.”

Serhan said the resilience of the operating portfolio and the strength of the development pipeline positioned the company well for the second half of 2026 and beyond.

He added that Acwa’s transformation agenda continued to progress during the second quarter, including its High-Performance Organization programme.

The initiative is intended to strengthen accountability, execution discipline and governance while defining the company’s optimal organisational structure and size.

Construction pipeline remains significant
Operationally, Acwa maintained high availability across its portfolio during the first half.

Power asset availability exceeded 92%, while water asset availability remained above 98%.

The company recorded 81.7 million man-hours across operations and construction during the period, with a lost-time injury rate of 0.02.

Construction activity remained substantial, with 32 projects under development representing approximately 47GW of power capacity and 2 million cubic metres per day of desalination capacity.

Acwa also achieved three commercial operation milestones during the first half.

These added 0.8GWh of battery energy storage system capacity and 0.9 million cubic metres per day of desalination capacity to its operating portfolio.

Key development milestones included the signing of the Water and Power Purchase Agreement for Az-Zour North Phase 2 & 3 in Kuwait.

The company also executed the Power Purchase Agreement for the Rabigh 2 IPP Expansion Project in Saudi Arabia.

In Mauritania, Acwa signed agreements for the 230MW N’Diago Combined Cycle Gas Turbine project, marking its entry into the country.

Abdulhameed Al Muhaidib, CFO of Acwa, said the company’s underlying fundamentals remained strong despite the timing pressures affecting financial performance.

“Our operating assets continue to generate recurring income and strong cash flows, with contributions increasing from newly operational and acquired assets,” he said.

“We remain disciplined in our capital allocation while maintaining a strong balance sheet and liquidity position to support our long-term growth ambitions.”

Al Muhaidib said several development-related milestones, including financial closes and project agreement signings, were now expected to be delayed by between six and 12 months.

He said the timing adjustments reflected the normal progression of project development and did not change the company’s view of the opportunities in its pipeline or their expected long-term value.

In July, Acwa announced its proposed 2025 cash dividend and introduced a dividend programme covering the 2026 to 2030 period.

The company said the programme was intended to support sustainable shareholder returns, greater predictability and disciplined capital allocation.

For the second half of 2026, Acwa will focus on delivering key development milestones, accelerating planned transactions and restoring financial momentum.

It also plans to maintain disciplined cost and cash management while continuing to expand across power, water and sustainable infrastructure markets.