Saudi-based International Company for Power and Water Projects (Acwa Power) has reported a net profit of SR744 million ( ($198 million) for FY 2021, down 17% compared to SR902.4 million ($240.2 million) the previous year.

Acwa Power, which is 44 per cent owned by Saudi Public Investment Fund, is a leading developer, investor and operator of power generation and desalinated water plants worldwide.

Announcing the results for the year ended December 31, 2021, Acwa Power said its revenue surged 11% to SR5.36 billion during the 12-month period from SR4.82 billion, while its gross profit rose 14.7% to SR2.9 billion from the previous year's figures of SR2.5 billion.

The company's operational profit too rose, posting a 12.5% growth in 2021 hitting SR2.19 billion from SR1.94 billion the previous year, stated Acwa Power in its filing to Saudi bourse Tadawul.

On the 17% drop in net profit, Saudi group said it was mainly driven by the recognition of share-based payments expense related to the public issue which was disclosed in the company’s IPO prospectus; recognition of the long-term incentive plan expense and an increase in zakat and tax charge, it stated.

Also a net reduction in share in net results of the equity accounted investees largely on account of accelerated depreciation in two oil-fired assets in Saudi Arabia and an impairment loss, partly offset by positive results from new projects which started operating in 2021, it added.

Acwa Power said however, the impact of all these factors was partly offset by higher development and construction management services revenue following several projects achieving financial close and higher operation and maintenance income on account of projects achieving their initial or project commercial operation dates.