Saudi Arabian utility developer ACWA Power has posted a net profit of 151.9 million riyals ($40.5 million) after zakat and tax for Q1 2022, a 9 percent increase from the year-ago period.

The effort missed most expectations. Financial data provider Refinitiv had calculated a mean analysts’ estimate of 413 million riyals.

The growth was mostly driven by higher share of net results of equity accounted investees, primarily from Jazan’s start of operations and partially offset by mainly lower operating income on account of lower production in the plants in Morocco because of extended outages, the Tadawul-listed company said in a bourse filing.

Revenue came in at 1.17 billion riyals, down 5 percent versus the year-ago period.

On a sequential quarter basis, the profit for Q1 dropped 55 percent. The decrease was mainly driven by lower development and construction management services income; lower finance lease income due to outages of certain projects in Morocco and an increase in zakat and tax charge.

Paddy Padmanathan, CEO and Vice Chairman, said the ongoing situation in Ukraine is impacting global supply chain logistics, the cost of commodities and components, as well as causing delays. "However, we are continuously evaluating market conditions, assessing the risks, and developing mitigation plans jointly with our partners to find solutions that effectively address the ensuing impact,” he said.

Looking ahead to 2022, Kashif Rana, CFO, said the company has access to diverse funding options to finance its pipeline of power, water and green hydrogen projects. 

(Reporting by Brinda Darasha; editing by Daniel Luiz)