RIYADH: Saudi energy company, ACWA Power, reported a SR21.8 million ($5.8 million) loss in its first quarterly earnings results after it went public.
The Riyadh-based company said that the loss in the third quarter was mainly due to IPO-related issues and payments as well as the depreciation of two of their oil-fired assets in Saudi Arabia.
The company, in which the Public Investment Fund owns a sizable stake of 44 percent, made a profit of SR541 million in the same quarter a year ago, it said in a filing today.
The net profit of the first nine months of this year also went down by half to SR434 million.ACWA Power's shares went down by 2.8 percent this morning following the announcement.
ACWA Power CEO Paddy Padmanathan comments on the results
“Our results for the third quarter demonstrate that we are on track towards achieving our business and financial targets as set forth in our Prospectus for the fiscal year 2021. This also provides us with a solid basis for growth, which is our top priority following ACWA Power’s landmark listing on the Saudi Stock Exchange, which was oversubscribed by an overall factor of 250 times. As a Saudi flagbearer and a national champion, the trust of our shareholders in our ability to be a force for greater good for people not just here in the Kingdom but around the world is our greatest motivation and inspiration. We will live up to this trust through continued ingenuity and excellence in everything we do as we fulfil our mission to deliver power and water reliably and responsibly, at low cost to communities worldwide.”
“The earning announcement may give different indications, speculators can exploit it, and this is normal due to the different goals to traders, but as an investor in the stock, you should read the details of the announcement to understand the earnings results better and make the picture clear to you” Mohammed Al Suwayed, CEO of Razeen Capital.
“The process of investing in the Saudi stock market is becoming more sophisticated and investors should seek proper advise to make better investment decisions” he added.