RIYADH: Saudi water desalination company Acwa saw a 28 percent year-on-year drop in its profits in the first half of 2026, with its CEO citing the “pace of the market” as a factor.
Over a period which saw major upheaval across the Middle East thanks to the ongoing US-led war with Iran, the firm posted a net profit of SR653 million ($173.90 million) compared with SR909 million for the same period in 2025.
The profit drop was balanced by Acwa strengthening its asset base over the six-month period, increasing assets under management by approximately SR30 billion to around SR475 billion, according to a press release.
The announcement comes amid a wave of earnings reports from leading Saudi companies, with energy giant Aramco posting a second-quarter adjusted net income of $33.4 billion, up 33 percent year on year, as the firm weathered unprecedented disruption through the Strait of Hormuz while maintaining production and exports to global markets.
Commenting on his company’s results, Acwa CEO Samir Serhan, said: “The first half of 2026 tested the pace of the market, and our response was to hold our direction and our discipline.
“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.
“The resilience of our operating portfolio and the strength of our development pipeline position us well for the second half of the year and beyond.”
Acwa showing resilience
The release said that the company’s financial performance during the first half of 2026 was influenced by the timing of certain developments, divestment, and financial close activities, “several of which are expected to progress during the second half.”
It added the company’s underlying operating portfolio “continued to demonstrate resilience, supported by recurring income and strong cash generation from operating projects, including recently commissioned and acquired assets.”
Key business development milestones included the signing of the Water and Power Purchase Agreement for Az-Zour North Phase 2 & 3 in Kuwait, execution of the Power Purchase Agreement for the Rabigh 2 IPP Expansion Project in Saudi Arabia, and the signing of agreements for the 230 MW N’Diago Combined Cycle Gas Turbine project in Mauritania, which marks Acwa’s entry into the African country.
Strong fundamentals
Acwa’s Chief Financial Officer Abdulhameed Al-Muhaidib, said the company’s fundamentals “remain strong,” supported by a resilient contracted portfolio, and ongoing expansion.
“Our operating assets continue to generate recurring income and strong cash flows, with contributions increasing from newly operational and acquired assets,” he added.
Al-Muhaidib also confirmed that several development-related milestones, “including financial closes and project agreement signings,” are now expected to be delayed by six to 12 months.
“This timing adjustment reflects the natural progression of project development and does not change our assessment of the opportunities in the pipeline or the long-term value they are expected to create,” he added.
