ACWA Power Shares: Comprehensive Analysis and Market Performance

ACWA Power was established in the mid-2000s as one of the leading players in the energy and water desalination sector in Saudi Arabia. The company specializes in developing and operating electricity and water projects under public-private partnership models, actively contributing to achieving the goals of the Kingdom's Vision 2030 by enhancing renewable energy sources. ACWA Power owns and operates a massive portfolio of projects that includes conventional power plants, renewable energy (solar and wind), and desalination plants, with a production capacity of up to 93 gigawatts of electricity and 9.3 million cubic meters of desalinated water per day, according to the company's official data. The listing of the company's shares on Tadawul under the symbol 2082 has allowed individual and institutional investors to participate in this vital sector, enhancing the company's position as a key component in the Saudi market index TASI. ACWA Power plays a pivotal role in meeting the growing demand for energy and water, not only within the Kingdom but also in regional and global markets, making it one of the cornerstones of sustainable development in the region.

Recent financial results for ACWA Power during 2024 and 2025 showed significant growth in profits and operational stability. In 2024, the company recorded an annual net profit of 1.75 billion Saudi Riyals, an increase of 6% over 2023 profits. This positive performance continued into 2025, with profits for the first nine months reaching 1.28 billion Riyals, achieving 427.2 million Riyals in the first quarter alone (a 44% increase over the same period last year) and 909 million Riyals in the first half. Continuous growth reflects the company's success in managing its projects effectively, especially with its reliance on long-term purchase contracts that ensure stable cash flows and fixed contractual prices. These contracts, often made with government entities or national utility companies, provide the company with a competitive advantage and relatively protect it from fluctuations in global energy prices. In light of these results, ACWA Power stands out as a company with strong financial performance and high operational flexibility, capable of efficiently facing market challenges.

During 2024 and 2025, the price of ACWA Power shares ranged between 200 and 220 Saudi Riyals, recording a value of approximately 219.00 Riyals in August 2025. The company's market value reached tens of billions of Riyals, placing it among the largest utility companies in the Saudi market. The price-to-earnings (P/E) ratio is moderate compared to the energy sector, due to the growth in net profits and stable revenues, although it varies depending on the reference periods used in financial analysis. Regarding dividends, ACWA Power adopts a moderate distribution policy, typically ranging between 15% and 25% of annual net profit, with a greater focus on reinvesting profits in new projects to enhance future growth. These indicators reflect a balance between maximizing shareholder value and investing in expansion, and despite the stock's attractiveness to sector followers, it is essential to monitor periodic announcements and official reports to obtain the latest figures on profits and distributions.

ACWA Power operates within the utilities sector, which is undergoing strategic transformations in Saudi Arabia, with the state focusing on diversifying energy sources and increasing the renewable share of national electricity and water production. Competition in this sector is largely integrative, as ACWA Power collaborates with companies such as Saudi Electricity Company and National Water Company through long-term partnership contracts, rather than competing directly in the daily market. Locally, there are competing companies such as Al-Thuraya and some investment funds, but ACWA Power's experience and the scale of its projects give it a clear competitive advantage. Regionally and globally, the company faces competition from major firms such as French Engie, Egyptian Orascom, and Emirati Masdar, especially in renewable energy and water desalination projects outside Saudi Arabia. ACWA Power's ability to win these contracts is attributed to its excellent execution record, government support, and extensive technical expertise, enhancing its position as a preferred choice for major projects in the region.

ACWA Power's portfolio includes massive and diverse projects both inside and outside the Kingdom. Locally, projects such as Rabigh 3 and Jubail 3 desalination and power generation plants stand out as some of the largest facilities of their kind in the Middle East. These projects contribute to enhancing the security of water and energy supplies in Saudi Arabia and support the state's trends towards sustainable energy. Internationally, the company has expanded into renewable energy projects in Morocco, the UAE, Jordan, Uzbekistan, and Pakistan, in addition to new projects in China and Africa. Among the latest developments is the signing of contracts to develop wind power plants in China and the acquisition of a major stake in the Al-Zour North plant in Kuwait. Most of these projects rely on long-term purchase contracts that ensure revenue stability and reduce operational risks, enabling the company to achieve sustainable growth in local and international markets.

ACWA Power witnessed a series of positive developments in 2024 and 2025 that enhanced its position in the financial market. Among the most notable news: achieving record profits and an annual growth rate of 6% in 2024, and continued strong financial performance in 2025 with profits exceeding one billion Riyals during nine months. In terms of expansions, the company made deals to develop wind power plants in China, reflecting its direction towards diversifying income sources and enhancing its international presence. It also completed a significant acquisition of a stake in Engie's Al-Zour plant in Kuwait, supporting the company's fleet in the regional energy sector. Additionally, ACWA Power focused on implementing innovative operational technologies, such as smart storage solutions and improving the efficiency of solar power plants, contributing to operational performance improvement and cost reduction. These developments, along with continued government support and regulatory incentives, favor the company's ability to achieve strong results in the upcoming periods.

ACWA Power focuses on achieving a balance between distributing profits to shareholders and reinvesting a significant portion of them in future expansion projects. Typically, the distribution ratio ranges between 15% and 25% of net profit, which is a moderate rate compared to some other utility companies that focus on immediate distributions. This policy aims to support the company's future growth by financing new projects in renewable energy and water desalination, enhancing long-term market value. However, the company remains keen on maintaining a profitable distribution record for shareholders, considering financial conditions and future project requirements. Shareholders are advised to follow the general assembly reports and the company's official statements to know the details of annual distributions, as these ratios may change based on performance results and market conditions.

ACWA Power directly benefits from Saudi government policies supporting the renewable energy and water desalination sector, as part of achieving the goals of the Kingdom's Vision 2030. The government has launched major initiatives to increase the share of clean energy and provide incentives for leading companies like ACWA Power, including facilitation in tendering processes and providing a supportive regulatory environment. The government is also committed to enhancing transparency and disclosure in the financial market, which has helped build investor confidence in sector companies. On the other hand, new environmental regulations impose additional challenges, but they also provide opportunities for investment in sustainable energy solutions and smart storage technologies, areas where ACWA Power excels. State support, along with a strong presence in partnership projects, positions the company strategically to benefit from the ongoing economic and developmental transformations in the Kingdom.

Despite strong performance and continuous expansion, ACWA Power shares face several challenges and potential risks, the most significant of which is the volatility of global energy prices, which may affect project costs and future returns. Regulatory changes, such as the imposition of environmental fees or tightening conditions on projects, could increase operational expenses and pressure profit margins. Increasing international competition from major energy companies, especially in regional and international bidding projects, represents an additional challenge in maintaining market share. Additionally, rising interest rates or declining liquidity in global markets could impact the stock's valuation and the company's ability to finance new expansions. Therefore, it is essential for investors to continuously monitor these factors and analyze their impact on the company's performance, while committing to obtaining information from official and reliable sources.

The price of ACWA Power shares can be monitored daily through the official website of the Saudi financial market (Tadawul) or through electronic trading platforms approved by banks and investment companies. The stock symbol is 2082, allowing investors to view real-time prices, trading data, and the company's news and official announcements. It is advisable to review the company's quarterly and annual reports to understand financial performance developments and new projects. Financial websites such as Argaam provide regular analyses of stock movements, P/E ratios, dividends, and changes in market value. Monitoring these sources helps investors objectively evaluate stock performance and make data-driven decisions, while adhering to the principle of not relying on unlicensed advice or unofficial predictions.

The financial indicators for ACWA Power shares reflect the company's strong position in the Saudi market. In 2025, the share price was approximately 219 Saudi Riyals, with a market value estimated in the tens of billions of Riyals. The price-to-earnings (P/E) ratio remained at moderate levels due to the continuous growth in profits. The company's cash distributions ranged between 15% and 25% of annual net profit, with a clear policy of reinvesting part of the profits in new projects. Annual revenue growth exceeded 6% in 2024, and this growth continued in 2025 with high operating profits achieved in each quarter. These figures reflect the company's financial stability and its ability to achieve strong results despite market challenges, which enhances investor confidence in the stock and positions it among the preferred options in the energy and utilities sector.

As Saudi Arabia moves towards enhancing the share of renewable energy in its national energy mix, ACWA Power emerges as a strategic player in achieving these goals. The company is increasingly investing in solar, wind, and sustainable desalination projects, benefiting from long-term government contracts that ensure ongoing returns. International expansions into promising markets such as China and Kuwait enhance income diversification and reduce risks associated solely with local markets. The company is expected to continue achieving stable growth in profits and revenues as it implements major projects and adopts modern technologies, supporting the sustainability of its operations in the long term. However, closely monitoring government policies, legislative changes, and global market trends remains essential to assess future opportunities and challenges for the stock.

To purchase ACWA Power shares in the Saudi financial market, one must first open a trading account with one of the companies or banks licensed by the Capital Market Authority. After activating the account and linking it to the electronic trading platform, one can search for ACWA Power shares using the symbol 2082 or the full name of the company. The required quantity is determined, and a purchase order is placed during the official trading session. It is advisable to review financial reports, company announcements, and distribution policies before making a decision, while considering risk distribution and diversifying the investment portfolio. It is essential to comply with the laws and regulations governing trading and investment in the local market, and not to rely on unlicensed recommendations or rumors circulating on some unofficial platforms.