Further disclosures

Remuneration Policy

The Remuneration Policy has been prepared by the Board Nomination and Remuneration Committee, approved by the Board and ratified by the General Assembly. The purpose of the Remuneration Policy is to set out the rules and guidelines in relation to specifying the method of remunerating its Directors, Board Committee members and the Executive Management.

General Remuneration Framework

As a general rule, any Remuneration payable by the Company to a Director, Board Committee member or member of the Executive Management must be in line with Applicable Legislation.

Any Remuneration payable to the Company’s Directors, Board Committees members, and Executive Management shall be determined with the view of achieving the following objectives:

  • to achieve the long-term success and development of the Company in line with its approved strategy and objectives;
  • to be consistent with the size, nature and level of risks associated with the Company, and be within the boundaries of the Board’s approved risk appetite for the Company;
  • to meet the interests of the Company’s shareholders;
  • to ensure that the Remuneration is justifiable and is within the market benchmark of companies in similar sectors;
  • to ensure coordination within the NR Committee in respect of future appointments;
  • to ensure and maintain fairness and equality in terms of job level, duties and responsibilities, educational and professional qualifications, practical experience, skills and level of performance;
  • to reasonably incentivize and retain a talented workforce necessary for the Company to achieve its business goals.

The Company should also take into account the general criteria set out under the Corporate Governance Regulations and other Applicable Legislation relating to payment of Remuneration to Directors, which include:

  • The Remuneration must be fair and proportionate to the Director’s activities carried out and responsibilities assumed, in addition to the objectives set out by the Board to be achieved during the financial year;
  • The Remuneration must be based on the recommendation of the NR Committee, for the approval of the Board and the General Assembly;
  • The level and composition of Remuneration should be sufficient and reasonable to attract and retain talented individuals to fulfill their respective roles;
  • The Remuneration payable to Directors shall not be a percentage of the profits achieved by the Company nor be based on the profitability of the Company; and
  • The Remuneration plans, policies or programmes must not be excessive in terms of what is standard practice, or which does not comply with the standards and rules set by the Supervisory Authorities.

Remuneration of the Board Directors

  1. Each Board Member shall be paid a lump-sum amount of SAR 350,000 per year in consideration for his/her position as a Director and his/her contribution to the Board’s activities. The Board may propose, following a recommendation from the NR Committee, to amend this amount subject to obtaining the General Assembly’s approval.
  2. Each Board Member shall also be paid an amount of SAR 3,000 as an attendance fee per Board meeting, whether attended in person or through any remote channel. Directors using their proxy will not be entitled to receive this attendance fee.
  3. Save as mentioned under point # 5 below, the aggregate annual Remuneration payable to any Director shall not exceed the capped amount of SAR 500,000 per year as set by the Supervisory Authorities, and which may be amended from time to time.
  4. The Company will reimburse the actual reasonable expenses incurred by a Director for attending Board and/or Board Committee meetings, including travel and accommodation expenses, in accordance with the Company’s approved internal Travel and Expense Policy of the Members of the Board of Directors and Board Committees.
  5. A Director may receive additional Remuneration for his/her membership in the Board Audit Committee, any executive, technical, administrative or advisory work assigned to him/her independently by the Company.
  6. At any given time, Directors shall not participate in discussions pertaining to their own Remuneration.
  7. Board members may not vote on agenda item(s) relating to their Remuneration at the General Assembly meetings.

Remuneration of the members of the Board Committees

Without prejudice to Article 59(2) of the Corporate Governance Regulations which provides for the General Assembly to issue, upon a recommendation of the Board, a regulation which determines the remuneration of the Board Audit Committee members:

  1. Each Board Committee member will be paid an annual lump-sum amount as recommended by the NR Committee and approved by the Board for each Committee he/she is a member of. The specific lump-sum amounts to be paid to the Board Committee members is as follows:
    1. Board Audit Committee: SAR 175,000 per year
    2. Executive Committee: SAR 175,000 per year
    3. Risk Management Committee: SAR 150,000 per year
    4. Nomination & Remuneration Committee: SAR 150,000 per year
  2. Each Director who is also a member of any Board Committee shall receive a lump-sum amount in addition to the amounts he/she receives for his/her position as a Board Director or for any executive, technical, administrative or advisory work, assigned to him/her by the Company;
  3. Each Board Committee member shall also be paid an amount of SAR 3,000 as an attendance fee per Board Committee meeting, whether attended in person or through any remote channel. The same amount is payable to any Director, who is not a Board Committee member, but who has been requested to participate at a Committee meeting, in accordance with the Corporate Governance Regulations. Committee members using their proxy will not be entitled to receive this attendance fee.

Remuneration of the Executive Management

  1. The Remuneration payable to members of the Executive Management shall be recommended by the NR Committee and approved by the Board in accordance with the relevant employment contracts and internal policies.
  2. The nature and classes of benefits applicable to the Executive Management, as well as the KPIs used to determine and recommend their Remuneration, shall be periodically reviewed by the NR Committee and approved by the Board.
  3. The Company may offer the Executive Management variable Remuneration that is market-informed and subject to the fulfilment of pre-defined performance goals, whether short-term or long-term.
  4. Such variable Remuneration plans shall be subject to the recommendation/endorsement of the NR Committee and the approval of the Board.

During the year, the remunerations paid to the Board of Directors, the Board Committee members and Executive Management as indicated in this report are in compliance with the remuneration policy stated above.



As of 31 December 2022, the Company had issued and paid-up share capital of SAR 7,310,997,290 consisting of 731,099,729 shares of SAR 10 par value per share. Below are the substantial shareholders of the Company as at 31 December 2021 with an ownership of 5% or more of the issued shares:

Shareholder Number of shares Ownership %
The Public Investment Fund 322,881,439 44.16%
Vision International Investment Company 166,320,184 22.75%
Al-Rajhi Holding Group Company 81,918,658 11.20%

Ownership of Board members and Senior Executives

As of 31 December 2022, the following Board members held shares in the Company:

Name of Director Number of shares Ownership %
Mr Mohammad Abunayyan 26,651,452 3.65%
Dr Ibrahim Al-Rajhi 239,707 0.03%
Mr Esmail Alsallom 1,000 <0.1%
HE Mr Ahmed Alhakbani 32 <0.1%

General Assembly Meetings

During the year 2022, the Company held 3 General Assembly meetings. All meetings were attended by the Chairman of the Board, Mr Mohammad Abunayyan and the members of the Board and previous Board of Directors, with absentees as noted in the table below.

Meeting Date Board Member Absentees
Extraordinary General AssemblyThe extraordinary General Assembly On 5 January 2022 was attended by the Previous Board of Directors. January 05, 2022 H.E. Mr. Mohammed Alnahas; and Mr Raid Ismail
Ordinary General Assembly February 17, 2022 Mr Omar Almidani
Ordinary General Assembly June 30, 2022 None

Dividend Policy

Pursuant to Article 9(c) of the CGR, each Shareholder acquires the rights attached to the Company’s Shares, including the right to receive a portion of the dividends declared. The declaration and payment of any dividends will be recommended by the Board before being approved by the shareholders at a General Assembly meeting. The Company is under no obligation to declare a dividend and any decision to do so will depend on, amongst other things, the Company’s historic and anticipated earnings and cash flow, financing and capital requirements, market and general economic conditions, the Company’s zakat position as well as legal and regulatory considerations. The distribution of dividends is subject to restrictions under financing agreements and any other project agreements to which the Company is a party from time to time (noting that as at 31 December 2022, there are no restrictions on the distribution of dividends according to the agreements entered by the Company), as well as certain limitations contained in the Bylaws (please refer to the company website for the Bylaws). If declared, dividends will be paid in Saudi Riyals.

According to Article 51 of the Bylaws, the Company’s annual net profits shall be allocated, after deducting all general expenses and other costs, and after setting aside the reserves necessary to cover the investment losses and obligations, as deemed necessary by the Board, as follows:

  • zakat amounts payable by the Shareholders will be calculated and paid by the Company to the relevant authorities;
  • following the zakat deductions, 10% will be set aside for the statutory reserve, provided that the General Assembly may stop such allocation once the statutory reserve reaches 30% of the Company’s paid up share capital;
  • the General Assembly may, upon the Board’s recommendation, set aside 1% of the net profits for the Company’s voluntary reserve(s) established for specific purposes;
  • the General Assembly may establish other reserves provided it is in the interest of the Company or it guarantees to the extent possible distribution of fixed dividends to the Shareholders. The General Assembly may also set aside certain amounts to establish or contribute to social union corporations for the Company’s employees;
  • following the above dividends will be distributed to the Shareholders in an amount not less than 1% of the Company’s paid up share capital. Also, the General Assembly may, upon the Board’s recommendation and as it sees fit, distribute further dividends; and
  • if the Company suffers losses, such losses may be carried forward to the following financial year and no profits shall be distributed until the losses are completely recovered.

The table below sets out a summary of the dividends declared by the company during the financial years ending 31 December 2021 and 2022 along with the ratio of dividends to the net profit attributable to the equity holders of parent:

SAR ‘000 2022 2021
Dividend declared 606,813 560,000
Net profit attributable to equity holders of parent 1,540,035 758,798
Distribution % 39% 74%

During 2021, the previous Board of Directors approved an annual dividend growth rate of 6–9% over the next 3 years.

In line with the above, on 26 January 2023, the Board of Directors approved a dividend payment of SAR 606.8 million (SAR 0.83 per share) for the year 2022, payable during 2023. The proposed dividends are subject to approval of the shareholders at the ordinary general assembly meeting.

The declared dividends of SAR 560 million for 2021 were approved by the shareholders at the ordinary general assembly of 30 June 2022 and paid on 21 July 2022.

Number of requests by the Company of the Shareholders records in 2021
No. Date of Request Purpose
1 05-Jan-22 Extraordinary general Assembly
2 02-Feb-22 Shareholder Analysis
3 17-Feb-22 Ordinary General Assembly
4 05-Mar-22 Shareholder Analysis
5 03-Apr-22 Shareholder Analysis
6 13-Apr-22 Shareholder Analysis
7 09-May-22 Shareholder Analysis
8 05-Jun-22 Shareholder Analysis
9 30-Jun-22 Ordinary General Assembly
10 18-Jul-22 Dividend entitlement
11 03-Aug-22 Shareholder Analysis
12 13-Sep-22 Shareholder Analysis
13 13-Nov-22 Shareholder Analysis

Declarations based on Corporate Governance Regulations (CGR)

Non-implemented provisions of the CGR

The Company has implemented all applicable mandatory provisions contained in the Corporate Governance Regulations issued by the CMA, except the provisions noted below. As at 31 December 2022, it is anticipated the Corporate Governance Regulations will be subject to further amendments as a result of the issuance of the new Companies Law which may impact the following provisions:

Article No. Provision of the Article Reason and remedial action
Guiding Article 51 Paragraph (c) The Chairman of the Audit Committee shall be an Independent Director. This is a guiding article. The Chairman of the Board Audit Committee is not a director yet he satisfies other independency criteria and possess relevant expertise and required knowledge for the role.
Article 67 RMC Chairman and majority of its members shall be non-Executive Directors This is a guiding article. Although the Chairman and majority of members are not directors, they are non-executives with relevant expertise and required knowledge
Article 84 The Ordinary General Assembly shall, upon the proposal of the Board of Directors, develop a policy to ensure having a balance between its objectives and the objectives the society aspires to achieve, with a view to develop the society’s social and economic conditions. This is a guiding article. However, the Company established a social responsibility policy that has been approved by the Board.
Article 85 (1)

The Board of Directors develops programmes and identifies the methods necessary to launch the Company’s initiatives in the social work field, including:

  1. Developing measurement indicators linking the Company’s performance to its social action initiatives, and comparing it with other companies exercising similar activity.
This is a guiding article. The Company continuously participates in various social activities and carries out social initiatives aimed at developing the social and economic conditions in the communities we operate in.

Declarations on the non-applicable provisions that must be mentioned under Article 87 of the CGR:

The Board of Directors of the Company declares the following:

  • Article 87 (9): there are no punishments, penalty, precautionary procedure or preventive measure imposed on the Company by the Authority or any other supervisory, regulatory or judiciary authority,
  • Article 87 (12): there are no recommendations of the Board Audit Committee, which is conflicted with the Board's decisions, or which the Board has refused to take on the appointment and removal of the Company's auditor, the determination of its fees, the evaluation of its performance or the appointment of the internal auditor, the reasons for those recommendations, and the reasons for not adopting them.
  • Article 87 (21): there are no inconsistency with the standards approved by the Saudi Organisation for Certified Public Accountants.
  • Article 87 (25): there is no interest in a class of voting shares held by persons (other than the Company’s directors, Senior Executives and their relatives) who have notified the company of their holdings pursuant to Article 67 of the Rules on the Offer of Securities and Continuing Obligations.
  • Article 87 (26): there are no interests, contractual securities or rights issue of the Board members, Senior Executives and their relatives on shares or debt instruments of the company or its affiliates.
  • Article 87 (28): there are no convertible debt instruments, contractual securities, preemptive right or similar rights issued or granted by the Company during the fiscal year 2021.
  • Article 87 (29): there are no conversion or subscription rights under any convertible debt instruments, contractually based securities, warrants or similar rights issued or granted by the Company.
  • Article 87 (30): there is no redemption, purchase or cancellation by the Company of any redeemable debt instruments.
  • Article 87 (35): there is no arrangement or agreement under which a director or a senior executive of the Company has waived any remuneration.
  • Article 87 (36): there is no arrangement or agreement under which a shareholder of the Company has waived any rights to dividends.
  • Article 87 (38): there are no investments made or any reserves set up for the benefit of the employees of the Company as at 31 December 2021.
  • Article 87 (40): the external auditor’s report for the year ended 31 December 2021, did not contain any reservations on the financial statements of the Company for the year then ended.
  • Article 87 (41): there was no recommendation to replace the external auditor before the end of its term.

The Board of Directors of the Company hereby declares that:

  • the accounting records were properly prepared;
  • the system of internal control is sound in design and has been effectively implemented; and
  • there are no doubts on the Company’s ability to continue business.

Related Party transaction including transaction in which a director of the Company, a senior executive or any person related to any of them is or was interested

The Company enters into a number of related party transactions to support its ordinary course of business as it pertains to its field and industry. All related party contracts are on arm’s length basis and contain no preferential terms and conditions. In order to maintain full transparency with respect to such transactions, the Company is listing key related party transactions as set out below:

Agreements and transactions with Public Investment Fund (PIF)

  • The business and contracts concluded between the Company and the Public Investment Fund, in which both legal entities are affiliated. This pertains to the memorandum of understanding (“MoU”) that supports and promotes an exchange market for Carbon Credits supply and trade. The MoU has a one year and 9 months term and there is no underlying value for the Company to enter into the MoU if it wishes not to participate in Carbon Credits trading.

Agreements and transactions with Saudi National Bank

  • The business and contracts concluded between the Company and Saudi National Bank (SNB), in which the Board member (Mr Abdullah AlRowais) has an indirect interest. This is for the provision of Equity Bridge Loans (EBL) in the value of (USD 200,000,000), which represents part of the company commitment in the NEOM Green Hydrogen Project. NEOM EBL facility tenor is 4.5 years.
  • The business and contracts concluded between the Company and Saudi National Bank (SNB), in which the Board member (Mr Abdullah AlRowais) has an indirect interest. This is for the issuance of bid bonds of an amount of (USD 2,400,000) for participation in round 6 of the Renewable Energy Programme in South Africa. The bonds were originally issued for one (1) year but were subsequently cancelled.

Agreements and transactions with NEOM

  • The business and contracts concluded between the Company and (NEOM) in which the President & CEO (Mr Suntharesan Padmanathan and the Board members Mr Fahad Alsaif, Mr Abdullah AlRowais, and Mr Omar AlMadhi) have an indirect interest. This is the coordinated deed to provide parent company guarantee associated with the engineering, procurement and construction contract limited notice to proceed for the NEOM Green Hydrogen Project. The deed has a one-year term and an amount of (USD 300,000,000).

Agreements and transactions with Water and Environment Technologies Company (“WETIC”)

  • The business and contracts concluded between the Company and (Water and Environment Technologies Company) (“WETIC”), in which Board member Mr Mohammad Abunayyan has an indirect interest. This pertains to signing a term sheet related to a potential agreement to build Seawater Reverse Osmosis Projects that may be entered into by an affiliated company. The term sheet has no underlying value because of its non-binding nature.

Agreements and transactions with Water & Electricity Holding Company (“Badeel”)

  • The business and contracts concluded and to be concluded between the Company and Water & Electricity Holding Company (Badeel) which is an affiliate of PIF. This is an agreement to regulate the partnership in bidding, consortiums, execution, and operation for the development of Al Shuaiba 1 & 2 PV project. The agreement is for a 35-year term and there is no financial value for this agreement.

Agreements and transactions with Aseel Resort

  • The business and contracts concluded between the Company and Aseel United Company, in which the Board member (Dr Ibrahim Al-Rajhi) has an indirect interest. This is a real estate lease for a term of two days to host a Company event for an amount of (SAR 100,000).

Agreements and transactions with HSBC Saudi Arabia

  • The business and contracts concluded or that will be concluded between the Company and (HSBC Saudi Arabia), in which ACWA Power Chief Financial Officer (Abdulhameed Al Muhaidib) has an indirect interest. These businesses and contracts are assigning HSBC Saudi Arabia as a Joint Lead Manager and Bookrunner role for ACWA Power SAR sukuk issuance and in the amount of (SAR 2,150,000).

Agreements and Transactions with The Saudi British Bank (SABB)

  • The business and contracts concluded between the Company and (The Saudi British Bank (SABB)), in which ACWA Power Chief Financial Officer (Abdulhameed Al Muhaidib) has an indirect interest. These businesses and contracts are issuance of bid bonds of (SAR 29,000,000). For Taiba & Qassim CCGT projects in Saudi Arabia. The bonds were originally issued for ten (10) months. However, the bonds were subsequently cancelled.

Competing business with the Company or any of its activities that member of the Board is/was engaging in

The following competing interests were disclosed and authorised by the Company’s General Assembly on 30 June 2022. Those interests are deemed competing because of their potentials to be in a business activity that is the same as the Company's activities or any part of them:

  • Mr Suntharesan Padmanathan is a Board member and founding shareholder of X-links UK Limited, a company that engages in developing, owning and operating long distance electricity interconnectors.
  • Mr Suntharesan Padmanathan is a board member and founding shareholder of Zhero Inc., a company that engages in building, developing and operating green energy infrastructure.

Description of the main scope of business of the Company and its affiliates. If there are two or more, a statement showing each activity and how it affects the Company businesses and results shall be attached.

ACWA POWER Company (the “Company” or “ACWA POWER” or the “Group”) is a Saudi joint stock company established pursuant to a ministerial resolution numbered 215 dated 2 Rajab 1429H (corresponding to 5 July 2008) and is registered in Riyadh, Kingdom of Saudi Arabia, under commercial registration number 1010253392 dated 10 Rajab 1429H (corresponding to 13 July 2008). The Company’s Head Office is located at Exit 8, Eastern Ring Road, Qurtubah District, P.O. Box 22616, Riyadh 11416, Kingdom of Saudi Arabia.

The Company’s formal name changed from International Company for Water and Power Projects to ACWA POWER Company after obtaining the approval of the Extraordinary General Assembly held on 5 January 2022 and fulfilling all relevant regulatory requirements.

On 11 October 2021, following a landmark Initial Public Offering (“IPO”), the Company successfully listed on the Saudi Stock Exchange (“Tadawul”).

The Company’s main activities are the development, investment, operation and maintenance of power generation, water desalination and green hydrogen production plants and bulk sale of electricity, desalinated water, green hydrogen and/or green ammonia to address the needs of state utilities and industries in long-term, off-taker contracts under utility services outsourcing and Public-Private-Partnership models in the Kingdom of Saudi Arabia and internationally.

Description of the Company’s significant plans and decisions (including changes to the structure, expanding the Company’s operations or halting them) and the future expectation

The Company operates in accordance with its business model of develop – invest – operate – optimise within the framework of its strategy to reliably and responsibly deliver affordable power and water in Saudi Arabia and other international markets in which the Company chooses to operate. Adding new projects or partial or full disposal of its existing businesses is ordinary course of business for the Company. The Company does not expect material changes in its business model and the structure of its business for foreseeable future.

Contributing to our communities

ACWA Power contributes to the communities in which it operates notably through supporting local content and driving community impact.

Supporting local content

ACWA Power supports local content by encouraging and developing local service providers, suppliers, and the workforce in the markets where we operate. This aims to stimulate national talent to help develop solutions that contribute to the energy transition.

Amplifying the Kingdom’s next generation

HIWPT- Summer Training Programme

The main objective of this programme is to contribute to the development of skills and employability of the Saudi youth, male and female.

In 2022, HIWPT provided a summer training programme service to high school students sponsored by ACWA Power, to continue support the immense potential of Saudi youth development.

The programme aims to empower youth in the Kingdom to create, ideate and innovate. The programme shall cover the following initiatives:

  • Introduction to renewables as future power resources
  • Environmental and climate change
  • Selected behavioural change topic
  • Selected online safety & health training
  • Selected online soft skills & self-development training
  • Basic computer literacy skills
  • Special online English language training

The programme is inspired by ACWA Power commitment in playing a role in the fulfilment of Vision 2030.

Driving community impact

As a company, we have always considered ourselves to be an integral member of the communities in which we operate. We prioritise community engagement and address the most pressing issues our communities face with relevant CSR programmes. We are fully committed towards community development, social responsibility, and sustainable livelihoods.

In 2022, our total CSR contribution amounted to SAR 18.4 million, and supported a range of initiatives:

We channel resources towards CSR initiatives in all of our regions of operations, whether mandated by the terms of our agreements with local off-takers or not and encourages all our business units operating in diverse geographies to include CSR considerations into its operations. In carrying out its CSR initiatives, due consideration is given to the diversity of cultures, values, customs, and societal norms of the region it operates. In 2022, most of our CSR support was allocated to supporting various social and environmental initiatives in the Kingdom of Saudi Arabia as well as to projects in our Africa region, namely in Morocco and South Africa.

Types of initiatives, % of total CSR spending in 2022
Our regions of operation, % of total CSR spending in 2022

In 2022, we continued to support various CSR initiatives, including longstanding ones, through the allocation of various resources. By striving to ensure that we have a positive impact on people and the planet, ACWA Power works towards fostering shared value.

Some of our key CSR initiatives in 2022 include:

Supporting Al-Jouf Association
Kingdom of Saudi Arabia, SAKAKA-Gulf

Supporting Al-Jouf Renewable Association, to enhance the culture of moving to environmental protection and renewable energy at Al -Jouf region. In addition, supporting Al-Jouf oil festival which supports local communities and local farmers to boost their production and sale.

Tree Planting Initiative
Kingdom of Saudi Arabia, SWEC – SEPCO-Red Sea

Tashjeer Initiative, SWEC and SEPCO aim to plant 333,333 seeds per-year for five years, as part of the Saudi Green Initiative and Vision 2030. The trees will be planted in housing camp and football playground areas with a total project cost of SAR 1,614,900. Type of trees to be planted, Tamarix Aphylla, Moringa Peregrinea, Ziziphus Spina etc.

Moreover, apart from tree planting initiative SWEC & SEPCO supports youth development in various training programs such as:

  • Misc Training (62 students)
  • Co-op Student Training (15 students)
  • Tamheer (10 trainees)
  • First Aid Training Programme (سفير الحياة ) (100 students)

Supporting local development
Morocco, Ouarzazate

Educational programme for women in Ghassate. The course aim to teach women in need literacy and alphabet, to boost their knowledge and enhance their education. Learning alphabet could bring confidence in themselves and fulfil their dreams.

The programme runs over a two-year period, where the first year focuses on providing basic knowledge and tools and the second year on using the tools they have learned.

As of today, 480 women from different villages in Ghassate have benefited from this programme since 2020.

Supporting local development through the improvement of infrastructure
Egypt, Benban

As a continuation from last year (2021) project of renovating Local Marketplaces in Benban and Mansorya. The market renovation project, which helps to improve living standards of the community. By increasing the number of awnings, improve bathroom facility, planning and beautification and provide water coolers.

Moreover, education development by renovating school facilities in Benban and health development by improving Asan specialised hospital as per their need. Lastly, mobility and river transportation by helping to repair motorboats that operate at night to ease their journey and enhance safety.

All of the above CSR initiatives/ actions have shown to be successful in creating local businesses opportunities, improving living standards, short-term labor opportunities, and finally improving sales to vendors.

Supporting environmental and social initiatives
UAE, Hassyan

Marine Conservation Initiative with the Emirates Marine Environmental Group (EMEG) Summary: On a yearly basis this project aims at improving marine coastline protection and monitoring, as well as increasing environmental awareness. At a local and project level, Hassyan Clean Coal has implemented a partnership with the Emirates Marine Environmental Group (EMEG) and conducted the following environmental awareness activities:

  • Monitoring of fauna
  • Coral reef rehabilitation
  • Turtle nesting season and turtle release event for students and members of the community
  • Mangrove tree planting
  • Beach cleaning
  • Supporting leisure and cultural activities in the local community

The Board has established the control environment, approved the risk appetite statement, risk management policy, and delegated oversight responsibilities under the Enterprise Risk Management (ERM) framework to the Board’s Risk Management Committee.

ACWA POWER together with its subsidiaries, joint ventures and affiliates (the “Group”) adopted comprehensive, state-of-the-art approach to risk management that follows the principles and methodology of the ISO 31000 guidance standard. Most of the Group’s managed risks are related to the different phases of its business model of developing, investing in, operating, and optimising the power generation, water desalination and green hydrogen production assets, encompassing a full life cycle of such assets

The Group promotes a strong culture of risk management, combined with an approved risk framework that effectively supports appropriate risk awareness, behaviours and risk-based decision making. In accordance with the Group’s risk management framework, we have developed specific responsibilities, tools and guidance, and systematically assess, mitigate, monitor risks at corporate level and during development, construction, and operation phase of projects to manage all relevant identifiable risks effectively.

Business development

All business development projects go through a gated approval process by the Management Investment Committee and the Board Executive Committee. Project-related market, technical, legal and financial risks are reviewed to guarantee the required risk adjusted return. An additional step has been introduced in the approval process for peer risk review, where the risk management team independently assesses and evaluates the risks. Residual risks are summarised in the form of a risk matrix with potential mitigations. Sensitivities are analysed for critical bid assumptions and related risks. All key risks are quantified, where feasible, in terms of rate of returns, and graphically presented, including potential upsides as well. This provides reasonable assurance on the project’s risk profile and ensures informed decision-making by management, the Board Risk Management Committee and the Board. This process is applied for all investments (greenfield, brownfield and acquisitions), divestments and changes in offtake agreements, if and when applicable.

Portfolio management

The Group focuses on developing scalable investment platforms and maintaining a portfolio with a technologically and geographically diversified asset base. As our portfolio risk landscape continues to evolve, the risk management function is involved to ensure identifying, assessing and constantly monitoring potential threats and opportunities that we could face to remain resilient on projects under construction as well as assets under operation. For our projects under construction, we remain actively engaged with our EPC contractors and encourage them to assess risks financially (by quantifying the potential risk), through schedule, quality, health and safety, and reputation. This gives more insight to the portfolio team to understand and act accordingly.

Operations & maintenance

The Group uses centralised expertise via NOMAC, a 100% owned O&M subsidiary of ACWA Power, to optimise the operation and maintenance of our fleet of assets diversified in technology and geography and ensure effective management and mitigation of risks associated with operational safety and reliability of supply.

Contractual risks are managed through an effective contract compliance and tracking mechanism; operational risks through robust operational and maintenance procedures including digitised condition monitoring and prediction; and supply and price risk is managed by a comprehensive and efficient Global supply chain management. In addition, the Group also plays a direct role in selecting its partners, contractors and technology for its projects to ensure an optimal solution for the project while reducing the overall exposure (directly or indirectly) to identified risks.

Material differences in the operational results compared to the preceding year’s results, along with any expectations announced by the Company

The operating income before impairment loss and other expenses for the year 2022 was
SAR  2,614 million
and 13.5% or SAR 311 million higher than SAR 2,303 million in 2021.
Net profit attributable to equity holders of the parent for 2022 was
SAR  1,540 million
and 103%, or SAR 781 million, higher than SAR 759 million of 2021.

Financial Information

Summarised consolidated statement of financial position
As at 31 December
All amounts in thousands SAR 2022 2021 2020 2019 2018
Total assets 49,301,376 45,708,698 36,260,987 37,721,283 36,167,162
Total liabilities 29,272,982 31,388,553 28,860,832 27,115,906 25,093,005
Net assets (total equity) 20,028,394 14,320,145 7,400,155 10,605,377 11,074,157
Summarised consolidated statement of cash flows
As at 31 December
All amounts in thousands SAR 2022 2021 2020 2019 2018
Net cash generated from operating activities 2,911,367 3,201,179 1,875,411 1,595,616 1,877,934
Net cash used in investing activities (2,361,616) (5,923,870) (1,349,576) (2,867,275) (3,483,487)
Net cash from / (used in) financing activities 425,554 7,061,204 (2,491,482) (1,428,291) 3,864,589
Summarised consolidated statement of income
Year ended 31 December
All amounts in thousands SAR 2022 2021 2020 2019 2018
Revenue 5,275,930 5,235,393 4,829,111 4,114,999 3,227,833
Operating costs (2,410,582) (2,383,677) (2,301,362) (2,028,804) (1,965,965)
Gross profit 2,865,348 2,851,716 2,527,749 2,086,195 1,261,868
Operating income before impairment loss and other expenses 2,613,633 2,302,718 1,948,990 1,842,097 1,818,347
Profit before zakat and income tax 1,491,428 888,344 831,639 399,746 680,316
Zakat and tax credit / (charge) (232,874) (80,110) 50,950 (74,008) (39,942)
Profit / (loss) from discontinued operations, including loss recognised on assets held for sale 217,856 (64,326) 19,798 554,345 (1,539,288)
Profit / (loss) for the year 1,476,410 743,908 902,387 880,083 (898,914)
Profit / (loss) attributable to equity holders of the parent 1,540,035 758,798 882,568 1,173,865 (773,842)
Information on ACWA Power’s total indebtedness as at 31 December 2022, is as follows:
All amounts in thousands SAR
Financing type Amount at the beginning of the year Financing period Net drawdown / (repayment) 31 December 2022 Maturity date
Financing facilities in relation to projects 17,406,149 2 to 22 years 1,048,552 18,454,701 2023–2044
Revolving corporate Murabaha facility 1,130 7 years - 1,130 2028
Corporate bond 2,789,269 7 years 1,722 2,790,991 2028
APMI One bond 3,004,460 18 years (1,477,210) 1,527,250 2039
APCM bond 614,221 22 years (15,711) 598,510 2044
23,815,229 23,372,582
Classification of Funding
Classification 2022 (SAR ‘000) 2021 (SAR ‘000)
Recourse debt 5,733,461 5,269,705
Non-recourse debt 17,639,121 18,545,524
Short term financing facilities 275,100 186,400
Total 23,647,682 24,001,629

Geographic analysis of the Group’s revenue from continuing operations

Kindly refer to note 35 of the year-end 2022 consolidated audited financial statements of the Company. All amounts are in SAR’000.

Revenue from continuing operations
2022 2021
Kingdom of Saudi Arabia 2,476,181 2,223,971
Middle East and Asia 2,496,592 2,477,011
Africa 303,157 534,411
5,275,930 5,235,393

Debt Instruments issued by the Company and Company’s subsidiaries

On 14 June 2021, the Group issued an Islamic bond (Sukuk) amounting to SAR 2,800.0 million at par (sak) value of SAR 1 million each, without discount or premium. The Sukuk issuance bears a return based on Saudi Arabia Interbank Offered Rate (SIBOR) plus a pre-determined margin payable semi-annually in arrears. The Sukuk will be redeemed at par on its date of maturity on 14 June 2028.

In May 2017, the Group (through one of its subsidiaries, APMI One) issued bonds with an aggregate principal of USD 814.0 million. The bonds carry a fixed rate of interest at 5.95% per annum due for settlement on a semi-annual basis. The bonds’ principal is due to be repaid in semi-annual instalments commencing from June 2021, with the final instalment due in December 2039. The bonds are collateralised by cash flows from certain equity accounted investees and subsidiaries of the Group. During the year, ACWA Power has partially bought back bonds amounting to USD 400.7 million (equivalent to SAR 1,502.7 million) at a discount. The Group has recognised a gain of SAR 74.8 million on the buyback which is net of the proportionate share in the unamortised transaction cost in relation to the bond’s issuance.

During the year 2021, the Group (through a subsidiary, APCM) issued Notes with an aggregate principal of USD 166.2 million. The Notes carry an interest at 3.7% per annum and the principal repayments in semi-annual instalments from 31 May 2021, with final instalment due on 27 May 2044. The Notes were issued to refinance an existing long-term facility of one of the Group’s wholly owned subsidiaries, Shuaibah Two Water Development Project (“Shuaibah II”).

Borrowings by project companies are primarily secured against underlying assets of the respective project companies, except borrowings that are with recourse to the Group amounting to SAR 2,941.3 million as of 31 December 2022 (31 Dec 2021: SR 2,479.3 million).

During the year ended 31 December 2022, RAWEC concluded phase 2 of debt refinancing. A new facility amounting to SAR 2,231.2 million was drawn down. The new facility was obtained in 2 Tranches as follows:

  • Commercial Loan Part 1 - USD 125.0 million equivalent to SAR 468.7 million, repayable on a semi-annual basis from June 2022 with the final instalment to be paid in June 2034. The fixed rate on the loan is 4%; and
  • Commercial Loan Part 2 - USD 470 million equivalent to SAR 1,762.5 million, repayable on a semi-annual basis from June 2022 with the final instalment to be paid in June 2034. The fixed rate on the loan is 4%.

Phase 1 of debt refinancing with a combined facility amount of SAR 3,000.0 million was completed on 30 December 2021.

Upon successful completion of refinancing, RAWEC paid a one-off fee of SAR 236.25 million to the off-taker/customer, who is also a minority shareholder, in accordance with the terms of the PWPA. The payment has been classified as other asset (note 9) and is amortised over remaining term of the PWPA.

During the year ended 31 December 2022, Barka concluded restructuring of its senior debt amounting to OMR 24.1 million equivalent to SAR 236.2 million. As per the revised terms, the loan will be repaid in semi-annual instalments effective from 30 June 2022 with a final instalment due on 31 December 2024 along with a balloon payment of OMR 10.6 million equivalent to SAR 103.9 million upon maturity. The loan carries an annual effective interest rate of 5.5%.

Statutory Amounts Paid and Payable

Statutory amounts paidStatutory amounts paid and payable are in respect of the Group
All amounts in thousands SAR unless otherwise stated Reasons for amounts paid Year ended 31 December 2022 Year ended 31 December 2021
Income taxes and zakat Income taxes and zakat calculated in accordance with Tax Regulations in the various jurisdictions in which the Group operates. See Note 20 of the consolidated financial statements. 101,080 192,946
Statutory amounts payableStatutory amounts paid and payable are in respect of the Group
All amounts in thousands SAR unless otherwise stated Reasons for amounts payable As at 31 December 2022 As at 31 December 2021
Income taxes and zakat Government obligation, payable on an annual basis 236,786 215,502