Q2 2026 Acwa Power Co Earnings Call

August 6, 2026

Speaker #1: Welcome, everyone, to the Aqua Financial Results Conference call for the six-month period ending June 30, 2026. My name is Lucy, and I'll be your coordinator today.

Operator: Welcome everyone to the Acwa Financial Results Conference Call for the six-month period ending 30 June 2026. My name is Lucy, I'll be your coordinator today. If you wish to ask a question during the webinar, please use the raise hand button if you've joined the call via Zoom. If you've joined us on the phone, please press star followed by one on your telephone keypad. Alternatively, you can use the Q&A chat box to submit a text question. It is now my pleasure to hand over to Mr. Ozgur Serin, VP, Investor Relations and Corporate Strategy to begin. Please go ahead.

Operator: Welcome everyone to the Acwa Financial Results Conference Call for the six month period ending 30 June 2026. My name is Lucy, I'll be your coordinator today. If you wish to ask a question during the webinar, please use the raise hand button if you've joined the call via Zoom. If you've joined us on the phone, please press star followed by one on your telephone keypad. Alternatively, you can use the Q&A chat box to submit a text question. It is now my pleasure to hand over to Mr. Ozgur Serin, VP, Investor Relations and Corporate Strategy to begin. Please go ahead.

Speaker #1: If you wish to ask a question during the webinar, please use the raise-hands button if you've joined the call via Zoom. If you've joined us on the phone, please press Star followed by 1 on your telephone keypad.

Speaker #1: Alternatively, you can use the Q&A chat box to submit a text question. It is now my pleasure to hand over to Mr. Ozge Surin, VP Investor Relations, and Corporate Strategy to begin.

Speaker #1: Please go ahead.

Speaker #2: Thank you, Lucy. Good morning, good afternoon, and good evening, everyone, depending on where you're joining. From today, thank you for being with us in another quarterly earnings call of Aqua.

Ozgur Serin: Thank you, Lucy. Good morning, good afternoon, and good evening, everyone, depending on where you're joining from today. Thank you for being with us in another quarterly earnings call of Acwa. Today, as usual, we will share with you our results as of and for the period ending 30 June 2026. We will be three hosts today, we are joining from three different locations, that's why we are not sitting together around one table in this call. Dr. Samir Serhan, who is our CEO, he's joining from Jakarta, Indonesia. Mr. Abdulhameed Al Muhaidib, our CFO, he's in Riyadh, he's joining from Riyadh. I, Ozgur Serin, as Lucy mentioned, head of Investor Relations and Corporate Strategy. Today, I'm in Dubai, the United Arab Emirates. As usual, we will start with our prepared remarks.

Speaker #2: Today, as usual, we will share with you our results. As of and for the period ending 30 June 2026, we will be three hosts today, and we are joining from three different locations and that's why we are not sitting together around one table in this call.

Speaker #2: Dr. Samir Serhan, who is our CEO, he is joining from Jakarta, Indonesia. And Mr. Abdulhamid Almuhaydib, our CFO, he's in Riyadh and he's joining from Riyadh.

Speaker #2: And I, Ozge Surin, as Lucy mentioned, Head of Investor Relations and Corporate Strategy, today I'm in Dubai, the United Arab Emirates. As usual, we will start with our prepared remarks.

Speaker #2: Dr. Samir will cover our overall business and strategic performance. While Abdulhamid will take us through the financial performance. Once these remarks are over, we will open the forum.

Ozgur Serin: Dr. Samir will cover our overall business and strategic performance, while Abdulhameed will take us through the financial performance. Once these remarks are over, we will open the forum to Q&A. During these remarks and subsequently in the Q&A session, we may be using some forward-looking statements. These must be taken within the framework of our disclaimer that is included in the presentation material. With this, over to you, Dr. Samir.

Speaker #2: We'll Q&A. During these remarks and subsequently, in the Q&A session, we may be using some forward-looking statements; these must be taken within the framework of our disclaimer that is included in the presentation material.

Speaker #2: With this, over to you, Dr. Samir.

Speaker #3: Right. Thank you, Ozge. Thank you for joining us today. I would like to begin by providing an update on the business before I pass it on to Abdulhamid to present the financial results.

Samir J. Serhan: Thank you, Asghar. Thank you for joining us today. I would like to begin by providing an update on the business before I pass it on to Abdulhameed to present the financial results. While our financial performance this quarter was impacted by timing shifts in project development milestones and a more dynamic geopolitical environment, the underlying fundamentals of the business remain strong. We continue to execute against one of the industry largest project development pipeline. We maintain high operational performance across our portfolio, we continue to make strategic decisions that strengthen our long-term sustainable profitable growth trajectory. This slide summarize the story of the last six months. There has been significant strategic momentum across the business that reinforces our long-term growth outlook. From a business development perspective, we achieved certain important milestones.

Samir Serhan: Thank you, Ozgur. Thank you for joining us today. I would like to begin by providing an update on the business before I pass it on to Abdulhameed to present the financial results. While our financial performance this quarter was impacted by timing shifts in project development milestones and a more dynamic geopolitical environment, the underlying fundamentals of the business remain strong. We continue to execute against one of the industry largest project development pipeline. We maintain high operational performance across our portfolio, we continue to make strategic decisions that strengthen our long-term sustainable profitable growth trajectory. This slide summarize the story of the last six months. There has been significant strategic momentum across the business that reinforces our long-term growth outlook. From a business development perspective, we achieved certain important milestones.

Speaker #3: While our financial performance this quarter was impacted by timing shifts, and project development milestones, and a more dynamic geopolitical environment, the underlying fundamentals of the business remain strong.

Speaker #3: We continue to execute against one of the industry's largest project development pipelines, we maintain high operational performance across our portfolio, and we continue to make strategic decisions that strengthen our long-term sustainable profitable growth trajectory.

Speaker #3: This slide summarizes the story of the last six months. There has been significant strategic momentum across the business that reinforces our long-term growth outlook.

Speaker #3: From a business development perspective, we achieved certain important milestones. We were granted by the Saudi government the Clean Energy Export Mandate, with exclusivity for green fuels export, which includes green hydrogen, and its derivatives such as green ammonia, green methanol, and green fuels.

Samir J. Serhan: We were granted by the Saudi government the Clean Energy Export Mandate with exclusivity for green fuels export, which includes green hydrogen and its derivatives, such as green ammonia, green methanol, and green fuels. This reinforces our long-term strategic role in supporting the Kingdom's clean energy ambitions. I will cover this in a bit more detail in the following slides. We also identified the United States as a growth market, which represents an important step in diversifying our portfolio into one of the world's largest and most attractive infrastructure markets. We have signed power purchase agreements totaling 5.2 gigawatts, water purchase agreements covering 600 cubic meters per day. We achieved financial close for a project representing SAR 3.7 billion in total investment cost. We also brought three new plants into commercial operation, adding 0.8 gigawatt hours of battery storage and 900,000 cubic meters per day of desalination capacity.

Samir Serhan: We were granted by the Saudi government the Clean Energy Export Mandate with exclusivity for green fuels export, which includes green hydrogen and its derivatives, such as green ammonia, green methanol, and green fuels. This reinforces our long-term strategic role in supporting the Kingdom's clean energy ambitions. I will cover this in a bit more detail in the following slides. We also identified the United States as a growth market, which represents an important step in diversifying our portfolio into one of the world's largest and most attractive infrastructure markets. We have signed power purchase agreements totaling 5.2 gigawatts, water purchase agreements covering 600 cubic meters per day. We achieved financial close for a project representing SAR 3.7 billion in total investment cost. We also brought three new plants into commercial operation, adding 0.8 gigawatt hours of battery storage and 900,000 cubic meters per day of desalination capacity.

Speaker #3: This reinforces our long-term strategic role in supporting the Kingdom's clean energy ambitions. I will cover this in a bit more detail in the following slides.

Speaker #3: We also identified the United States as a growth market, which represents an important step in diversifying our portfolio. And to one of the world's largest and most attractive infrastructure markets.

Speaker #3: We have signed power purchase agreements totaling 5.2 gigawatts, water purchase agreements covering 600 cubic meters per day. We achieved financial growth for a project representing 3.7 billion Saudi riyal, in total investment cost.

Speaker #3: We also brought three new plants into commercial operation. Adding 0.8 gigawatt-hours of battery storage, and 900,000 cubic meters per day of desalination capacity. Operational performance across the portfolio remained very strong.

Samir J. Serhan: Operational performance across the portfolio remained very strong. Overall, plant availability remained robust, with overall power availability exceeding 92%, while renewable power availability reached more than 98%. Water availability remained above 98%. Safety remains our highest operational priority and the foundation of everything we do. During the first six months of the year, our team safely delivered more than 38 million hours across our global portfolio while maintaining a lost time injury rate of 0.018. We also recorded 80 potential fatality and permanent impairment, or what we call PFPI incidents. We view this as a positive indicator of a stronger reporting culture and improved hazard identification across the organization. It demonstrates our people are proactively identifying and reporting potential risks before they result in serious incidents, reinforcing our commitment to continuous improvement and ensuring that everyone returns home safely at the end of each day. Turning to the financial performance.

Samir Serhan: Operational performance across the portfolio remained very strong. Overall, plant availability remained robust, with overall power availability exceeding 92%, while renewable power availability reached more than 98%. Water availability remained above 98%. Safety remains our highest operational priority and the foundation of everything we do. During the first six months of the year, our team safely delivered more than 38 million hours across our global portfolio while maintaining a lost time injury rate of 0.018. We also recorded 80 potential fatality and permanent impairment, or what we call PFPI incidents. We view this as a positive indicator of a stronger reporting culture and improved hazard identification across the organization. It demonstrates our people are proactively identifying and reporting potential risks before they result in serious incidents, reinforcing our commitment to continuous improvement and ensuring that everyone returns home safely at the end of each day. Turning to the financial performance.

Speaker #3: Overall, plant availability remained robust, with overall power availability exceeding 92%. While renewable power availability reached more than 98%. Water availability remained above 98%. Safety remains our highest operational priority.

Speaker #3: And the foundation of everything we do. During the first six months of the year, our team safely delivered more than 38 million hours across our global portfolio.

Speaker #3: While maintaining a lost-time injury rate of 0.018, we also recorded 80 potential fatality and permanent impairment, or what we call BFPI, incidents. We view this as a positive indicator of a stronger reporting culture.

Speaker #3: And improved hazard identification across the organization. A demonstrate our people are proactively identifying and reporting potential risks. Before their result in serious incidents. Reinforcing our commitment to continuous improvement.

Speaker #3: And ensuring that everyone returns home safely at the end of each day. Turning into the financial performance, as we move our project from construction to operation, the distributions from our growing operational portfolio continue to strengthen operating cash generation.

Samir J. Serhan: As we move our project from construction to operation, the distributions from our growing operational portfolio continue to strengthen operating cash generation. In the meantime, our leverage ratio has shown an increase versus the latest reported period as we continue investing in our committed growth pipeline. Following the geopolitical volatility that has impacted our operations and still affects the region and beyond, there is continued push of positive cautiousness in our business ecosystem. Accordingly, we experienced timing shifts into H2 of the year in several project development milestones that had otherwise been expected during the past six months. We also remain focused on the likelihood that some milestones and recognition of associated financial impact may be delayed until next year.

Samir Serhan: As we move our project from construction to operation, the distributions from our growing operational portfolio continue to strengthen operating cash generation. In the meantime, our leverage ratio has shown an increase versus the latest reported period as we continue investing in our committed growth pipeline. Following the geopolitical volatility that has impacted our operations and still affects the region and beyond, there is continued push of positive cautiousness in our business ecosystem. Accordingly, we experienced timing shifts into H2 of the year in several project development milestones that had otherwise been expected during the past six months. We also remain focused on the likelihood that some milestones and recognition of associated financial impact may be delayed until next year.

Speaker #3: In the meantime, our leverage ratio has shown an increase versus the latest reported period. As we continue investing in our committed growth pipeline. Following the geopolitical volatility that has impacted our operations, and still affect the region and beyond, there is continued push of positive cautiousness in our business ecosystem.

Speaker #3: Accordingly, we experience timing shifts into the second half of the year in several project development milestones, that had otherwise been expected during the past six months.

Speaker #3: We also remain focused about the likelihood that some milestones and recognition of associated financial impact may be delayed until next year. At the same time, we launch our high-performance organization program.

Samir J. Serhan: At the same time, we launched our High Performance Organization Program. This is a company-wide transformation initiative designed to improve organizational efficiency and normalize our expense base while supporting sustainable short- and long-term growth. I will also dive a little deeper into this subject in the following slides. Looking beyond the quarter, we remain reasonably confident in the strength of our long-term growth trajectory and the value we are creating. Since our announced Growth Strategy 2.0 2023, our power portfolio has almost doubled from just over 50 gigawatts to more than 98 gigawatts today. Water desalination has grown from 6,800,000 cubic meters per day to 9,700,000 cubic meters per day. Assets under management have increased from $78 million to approximately $127 billion. These numbers demonstrate that we continue to scale rapidly while maintaining disciplined capital allocation.

Samir Serhan: At the same time, we launched our High Performance Organization Program. This is a company-wide transformation initiative designed to improve organizational efficiency and normalize our expense base while supporting sustainable short- and long-term growth. I will also dive a little deeper into this subject in the following slides. Looking beyond the quarter, we remain reasonably confident in the strength of our long-term growth trajectory and the value we are creating. Since our announced Growth Strategy 2.0 2023, our power portfolio has almost doubled from just over 50 gigawatts to more than 98 gigawatts today. Water desalination has grown from 6,800,000 cubic meters per day to 9,700,000 cubic meters per day. Assets under management have increased from $78 million to approximately $127 billion. These numbers demonstrate that we continue to scale rapidly while maintaining disciplined capital allocation.

Speaker #3: This is accompany-wide a transformation initiative designed to improve organizational efficiency, and normalize our expense space. While supporting sustainable short and long-term growth. I will also dive a little deeper into this subject in the following slides.

Speaker #3: Looking beyond the quarter, we remain reasonably confident in the strength of our long-term growth trajectory. And the value we are Since our announced growth strategy 2.0, 2023, our power portfolio has almost doubled from just over 50 gigawatts to more than 98 gigawatts today.

Speaker #3: Water desalination has grown from 6 million 800,000 cubic meters per day to 9 million 700,000 cubic meters per day. Acid under management have increased from 78 million dollars to approximately 127 billion US dollars.

Speaker #3: These numbers demonstrate that we continue to scale rapidly, while maintaining disciplined capital allocation. Today we have 44 gigawatts already in operation. More than 46 gigawatts under construction.

Samir J. Serhan: Today, we have 44 GW already in operation, more than 46 GW under construction, and almost 8 GW in advanced development. In water, more than 70% of our portfolio capacity is in operation as of today. This balanced portfolio creates multiple avenues for growth while providing visibility on a future recurring earnings profile. Our confidence in the long-term outlook is supported by one of the industry's strongest project pipeline, as I mentioned earlier. Within the immediate pipeline, we have the projects that have already been awarded, where we are the preferred bidder and are currently awaiting contract signing. This category includes 2.9 GW of power, 9.2 GWh of power storage, battery storage, and 600,000 cubic meters per day of water. Additionally, we have the projects where we have submitted our bids or tenders and are awaiting results.

Samir Serhan: Today, we have 44 GW already in operation, more than 46 GW under construction, and almost 8 GW in advanced development. In water, more than 70% of our portfolio capacity is in operation as of today. This balanced portfolio creates multiple avenues for growth while providing visibility on a future recurring earnings profile. Our confidence in the long-term outlook is supported by one of the industry's strongest project pipeline, as I mentioned earlier. Within the immediate pipeline, we have the projects that have already been awarded, where we are the preferred bidder and are currently awaiting contract signing. This category includes 2.9 GW of power, 9.2 GWh of power storage, battery storage, and 600,000 cubic meters per day of water. Additionally, we have the projects where we have submitted our bids or tenders and are awaiting results.

Speaker #3: And almost 8 gigawatts in advanced development. In water, more than 70% of our portfolio capacity is in operation as of today. This balanced portfolio creates multiple avenues for growth.

Speaker #3: While providing visibility on our future recurring earnings profile, our confidence in the long-term outlook is supported by one of the industry's strongest project pipelines, as I mentioned earlier.

Speaker #3: Within the immediate pipeline, we have a projects that have already been awarded where we are the preferred bidder and are currently awaiting contract signing.

Speaker #3: This category include 2.9 gigawatt of power, 9.2 gigawatt-hour of power storage, a battery storage, and 600,000 cubic meters per day of water. Additionally, we have a projects where we have submitted our bids or tenders and are awaiting results.

Speaker #3: This category includes 4.2 gigawatt of power, and 1,200,000 cubic meters per day of water. What's really even more impressive, beyond this imminent pipeline sits a much larger 18-month visible pipeline.

Samir J. Serhan: This category includes 4.2 GW of power and 1,200,000 cubic meters per day of water. What's really even more impressive, beyond this imminent pipeline, sits a much larger 18-month visible pipeline consisting of 120 GW of power opportunities, more than 995 GWh of battery storage, and 3 million cubic meters per day of water opportunities. Definitely very impressive project pipeline. We're also progressing the financial close of a portfolio of contracted and awarded project that's made of 13.4 GW of power, 6.0 GWh of battery storage, and around 3 million cubic meters per day of water capacity over the next 18 months. I want to assure you again that our objective is not simply to win projects. Our objective is to build a portfolio that creates sustainable long-term shareholder value. Let me move to a subject that I mentioned earlier.

Samir Serhan: This category includes 4.2 GW of power and 1,200,000 cubic meters per day of water. What's really even more impressive, beyond this imminent pipeline, sits a much larger 18-month visible pipeline consisting of 120 GW of power opportunities, more than 995 GWh of battery storage, and 3 million cubic meters per day of water opportunities. Definitely very impressive project pipeline. We're also progressing the financial close of a portfolio of contracted and awarded project that's made of 13.4 GW of power, 6.0 GWh of battery storage, and around 3 million cubic meters per day of water capacity over the next 18 months. I want to assure you again that our objective is not simply to win projects. Our objective is to build a portfolio that creates sustainable long-term shareholder value. Let me move to a subject that I mentioned earlier.

Speaker #3: Consisting of 120 gigawatts of power opportunities. More than 95 gigawatt-hours of battery storage. And a 3 million cubic meters per day of water opportunities.

Speaker #3: Definitely very impressive project pipeline. We're also progressing the financial close of a portfolio of contracted and awarded project, that's made of 13.4 gigawatt of power, 6.0 gigawatt-hour of battery storage, and around 3 million cubic meters per day of water capacity over the next 10, 18 months.

Speaker #3: I want to assure you again that our objective is not simply to win projects. Our objective is to build a portfolio that creates sustainable long-term shareholder value.

Speaker #3: Let me move to a subject that I mentioned earlier, one of the most significant strategic development during the period was that the Saudi government mandate supporting Aquarole in developing future clean energy exports.

Samir J. Serhan: One of the most significant strategic development during the period was that the Saudi government mandate supporting Acwa Power in developing future clean energy exports. This represents an important extension of our existing developer, owner, and operator business model. It doesn't replace our existing strategy. It builds on it. The mandate grants Acwa the exclusive right to export Saudi produced green hydrogen and its derivative, green ammonia, green methanol, green fuels, to international markets. This mandate also assigns us responsibility for developing renewable electricity export opportunities, including generation and transmission. In green fuels, our focus remains on developing commercial export opportunities from projects within Saudi Arabia. In renewable electricity export, our near-term focus is on the GCC and Middle East, with Bahrain identified as the first export route. It's important to emphasize that our 2030 targets remain unchanged at this point.

Samir Serhan: One of the most significant strategic development during the period was that the Saudi government mandate supporting Acwa Power in developing future clean energy exports. This represents an important extension of our existing developer, owner, and operator business model. It doesn't replace our existing strategy. It builds on it. The mandate grants Acwa the exclusive right to export Saudi produced green hydrogen and its derivative, green ammonia, green methanol, green fuels, to international markets. This mandate also assigns us responsibility for developing renewable electricity export opportunities, including generation and transmission. In green fuels, our focus remains on developing commercial export opportunities from projects within Saudi Arabia. In renewable electricity export, our near-term focus is on the GCC and Middle East, with Bahrain identified as the first export route. It's important to emphasize that our 2030 targets remain unchanged at this point.

Speaker #3: This represents an important extension of our existing developer owner and operator business model. It doesn't replace our existing strategy. It builds on it. The mandate grants Aqua the exclusive right to export Saudi-produced green hydrogen and its derivative, green ammonia, green methanol, green fuels, to international market.

Speaker #3: This mandate also assigns us responsibility for developing renewable electricity export opportunities. Including generation and transmission. In green fuels, our focus remains on developing commercial export opportunities from projects within Saudi Arabia.

Speaker #3: In renewable electricity export, our near-term focus is on the GCC and Middle East, with Bahrain identified as the first export route. It's important to emphasize that our 2030 targets remain unchanged at this point.

Speaker #3: While a future operation arising from this mandate will be assessed carefully, and disclosed as they mature. With this, I'm announcement demonstrate is the confidence blade placed in Aqua by the kingdom, reflecting our track record in developing financial, construction, and operating larger scale energy structure.

Samir J. Serhan: While the future opportunity arising from this mandate will be assessed carefully and disclosed as they mature. What this announcement demonstrates is the confidence placed in Acwa by the kingdom, reflecting our track record in developing financial, construction, and operating large-scale energy structure. We're of course, thankful for that offer. Alongside portfolio growth, we're equally focused on strengthening how we operate as an organization. The High Performance Organization Program is our enterprise-wide transformation agenda. Its objective is straightforward: to build a leaner, more integrated, more agile organization capable of supporting next phase of Acwa growth. The program is built around six interconnected transformation work streams that improve governance, strengthen performance management, enhance digital capabilities, simplify decision-making, and improve organization effectiveness. Ultimately, this is about increasing accountability, ownership, improving execution discipline, and creating sustainable long-term value.

Samir Serhan: While the future opportunity arising from this mandate will be assessed carefully and disclosed as they mature. What this announcement demonstrates is the confidence placed in Acwa by the kingdom, reflecting our track record in developing financial, construction, and operating large-scale energy structure. We're of course, thankful for that offer. Alongside portfolio growth, we're equally focused on strengthening how we operate as an organization. The High Performance Organization Program is our enterprise-wide transformation agenda. Its objective is straightforward: to build a leaner, more integrated, more agile organization capable of supporting next phase of Acwa growth. The program is built around six interconnected transformation work streams that improve governance, strengthen performance management, enhance digital capabilities, simplify decision-making, and improve organization effectiveness. Ultimately, this is about increasing accountability, ownership, improving execution discipline, and creating sustainable long-term value.

Speaker #3: And we're of course thankful for that offer. Alongside portfolio growth, we're equally focused on strengthening how we operate as an organization. The high performance organization program is our enterprise-wide transformation agenda.

Speaker #3: It's objective is straightforward. To build a leaner, more integrated, more agile organization capable of supporting next phase of Aqua growth. The program is built around six interconnected transformation work streams.

Speaker #3: That improve governance, strengthen performance management, enhance digital capabilities, simplify decision making, and improve organization effectiveness. Ultimately this about increasing accountability, ownership, improving execution discipline, and creating sustainable long-term value.

Speaker #3: Overall, while the near-term financial performance has been affected by timing shift, geopolitical volatility, we're still very focused on our momentum moving forward and our grid strategy.

Samir J. Serhan: Overall, while the near-term financial performance has been affected by timing shifts, geopolitical volatility, we're still very focused on our momentum moving forward and our growth strategy. Our operating platform continue to perform well. Our development pipeline remain robust. We have secured important strategic opportunity that will shape the company future. We have launched a transformation program that will improve efficiency and profitability over the long term. With that, I'll pass it on to Abdel Hamid to go over the financial results. Abdel Hamid?

Samir Serhan: Overall, while the near-term financial performance has been affected by timing shifts, geopolitical volatility, we're still very focused on our momentum moving forward and our growth strategy. Our operating platform continue to perform well. Our development pipeline remain robust. We have secured important strategic opportunity that will shape the company future. We have launched a transformation program that will improve efficiency and profitability over the long term. With that, I'll pass it on to Abdulhameed to go over the financial results. Abdulhameed?

Speaker #3: Our operating platform continue to perform well. Our development pipeline remain robust. We have secured important strategic opportunity that will shape the company future. And we have launched a transformation program that will improve efficiency, and profitability over the long term.

Speaker #3: With that, I will pass it on to Abdel Hamid to go over the financial results. Abdel Hamid?

Speaker #2: Thank you, Dr. Samir. And good evening. Thank you very much for joining us. This evening and I would like really to take you on the next eight slides to a bit of details.

Abdulhameed Al Muhaidib: Thank you, Dr. Samir. Salam alaikum everyone, good evening. Thank you very much for joining us this evening, I would like really to take you on the next eight slides into a bit of details. There has been multiple announcements as highlighted by Dr. Samir during H1 of the year. We'll start with a quick outlook of the financial performance. We have seen and witnessed a very strong distribution from the operating companies, that has resulted really in a 7% increase in the total current operating cash flow compared to the same period of last year.

Speaker #2: There has been multiple announcements as highlighted by Dr. Samir during that the second half of sorry, the first half of the year. And we'll start with a quick outlook of the financial performance.

Speaker #2: So we have seen and witnessed a very strong distribution from the operating companies and that has resulted really in a 7% increase in the total current operating cash flow compared to the same period of last year.

Speaker #2: This comes despite the fact that we had a very tough development period and during that development period we have lost quite a bit of our usual weight when it comes to the development fees and some of the services fees that usually comes into play after the project achieving financial closes.

Abdulhameed Al Muhaidib: This comes despite the fact that we had a very tough development period, during that development period, we have lost quite a bit of our usual weight when it comes to the development fees and some of the services fees that usually comes into play after the project achievement financially closes. For that specific category, we do believe that most of the impact is timing, that timing will range between six to 12 months, depending really on how the geopolitical escalation gets impacted or foreseeing the impact with for the next upcoming period. We have also witnessed at the same period unfortunate outages, some of them related to CSP and others related to CCGTs, that we believe is an unplanned outages, this has impacted us for H1 of 2026.

Speaker #2: So for that specific category, we do believe that most of the impact is timing and that timing will range between 6 to 12 months depending really on how the geopolitical escalation gets impacted or foreseeing the impact of it for the next upcoming period.

Speaker #2: We have also witnessed at the same period unfortunate outages. Some of them related to CSP and others related to CCDTs. That we believe it's an unrepairing outages and this has impacted us for the first half of 2026.

Speaker #2: Taking both impacts into combined together, there is a lower operating income and net income have been witnessed for this specific period. And I will take you through the details at a later stage.

Abdulhameed Al Muhaidib: Taking both impacts combined together, there is a lower operating income and net income have been witnessed for this specific period, I will take you through the details at a later stage. We continue to execute our milestone and pipeline when it comes to development and projects under construction. Out of the full SAR 126 billion of assets under management, only 50% is full in operation. That give you a bit of perspective that there is another 50% that are actually in the pipeline, either partial operation, under construction or in advanced development. We announced in July 2026 the board recommendation for the cash dividends for around SAR 46 per share. Also, we had announced the dividend distribution program for the next five years, which we'll take you through it in the upcoming slides. Let's start first with the operating income.

Speaker #2: We continue to execute our milestone and pipeline when it comes to development and construction. Out of the full 126 billion dollar of assets under management, only 50% is full in operation.

Speaker #2: So that give you a bit of perspective that there is another 50% that are actually in the pipeline either partial operation, under construction, or in advance development.

Speaker #2: We announced in July 2026 the board recommendation for the cash dividends. We're around 46 salaries per share. And also we had announced the dividend distribution program for the next five years, which will take you through it in the upcoming slides.

Speaker #2: Let's start first with the operating income. So this is a waterfall bridge that can take you from a similar period of last year between the 2.2 billion.

Abdulhameed Al Muhaidib: This is a waterfall page that can take you from a similar period of last year between SAR 2.2 billion to SAR 1.4 billion. We take you through the components one by one. You can see the first positive component is the contribution from the existing assets as well as the new project came into operation during the same period of H1. That has contributed around SAR 250 million into our operating income. We announced earlier that we will continue to look at brownfield opportunities, and we have successfully closed two acquisitions last year. One is the Shuaibah IWPP additional shares, and the other one, the portfolio specifically in Bahrain and Kuwait for one of our competitors. This has contributed around SAR 184 million for the same period of last year.

Speaker #2: The real to 1.4 billion Saudi real. And we'll take you through the components one by one. So you can see the first positive component is the contribution from the existing assets as well as the new project came into operation.

Speaker #2: During the same period of first half of the year. So that has contributed around 250 million Saudi real into our operating income. We announced earlier that we will continue to look at Brownfield opportunities.

Speaker #2: We have successfully closed two acquisitions last year. One is the Shaiba IWPP additional shares, and the other was a portfolio specifically in Bahrain and Kuwait from one of our competitors.

Speaker #2: This has contributed around 184 million Saudi real for the same period of last year. When it comes to the 444 million drop, you can see it's purely on the development, procurement, and construction services that has been impacted us.

Abdulhameed Al Muhaidib: When it comes to the SAR 444 million drop, you can see it is purely on the development, procurement, and construction services that has impacted us. I will say in this one, there are two really specific items here. One is that 2025 was exceptionally high for that specific fees. The second, that this year was also unexpectedly low when it comes to the development, procurement, and construction services fees. We do believe that part of that SAR 444 million impact is timing. For the clarity of the presentation, we show you the full impact in the operating income. You will see that there is a SAR 563 million lower or a negative impact or negative variance for the same period of last year.

Speaker #2: I will say in this one there is a two really specific items here. One is that 2025 was exceptionally high for that specific fees.

Speaker #2: And the second that this year was also unexpectedly low when it comes to the development and procurement and construction services fees. We do believe that part of that 444 impact is timing.

Speaker #2: But for the clarity of the presentation, we show you the full impact in the operating income. Then you will see that there is a 563 million lower or negative impact or negative variance for the same period of last year.

Speaker #2: And this is mainly related to a big settlement that we had in those three last year. As well as some of the impact related to the CCGT assets.

Abdulhameed Al Muhaidib: This is mainly related to a big settlement that we had in Q3 last year, as well as some of the impacts related to the CCGT assets. Finally, there is also SAR 155 million impact related to the same period of G&A expenses related to additional investment in the digital activities and other activities as well. Moving to the net income slide, you will see that there is a big variance impact from SAR 900 million to SAR 653 million for the same period of 2026. Item 4 is mainly what we have explained in detail just now, which is the operating income. You will see that there is a lower impairment that has been impacted us in this year.

Abdulhameed Al Muhaidib: This is mainly related to a big settlement that we had in Q3 last year, as well as some of the impacts related to the CCGT assets. Finally, there is also SAR 155 million impact related to the same period of G&A expenses related to additional investment in the digital activities and other activities as well. Moving to the net income slide, you will see that there is a big variance impact from SAR 900 million to SAR 653 million for the same period of 2026. Item four is mainly what we have explained in detail just now, which is the operating income. You will see that there is a lower impairment that has been impacted us in this year.

Speaker #2: Finally, there is also 155 million impact related to the same period of GNA expenses related to additional investment in the digital activities and other activities as well.

Speaker #2: Moving to the net income, slide you will see that there is a big variance impact from the 900 million Saudi real to 653 million Saudi real for the same period of 2026.

Speaker #2: Item four is mainly what we have explained in detail just now, which is the operating income. And then you will see that there is a lower impairment that has been impacted us in this year.

Speaker #2: If you recall, last year we did a big assessment, and then we recorded an impairment loss of close to SAR 250 million.

Abdulhameed Al Muhaidib: If you recall, last year we did a big assessment. We had recorded an impairment loss of close to SAR 250 million, and that is now shown in item 1. You will see also there is SAR 130 million impact that is mainly related to one of the derivatives that we have terminated last year and had a negative impact on us. Here you can see it is a positive variance due to the impact of last year. The third item is mainly related to an NCI difference between this period and the same period of last year. That's also a positive variance of SAR 125 million. Together with all these positive variances, there is what we have explained just now, the SAR 763 million total negative variance for the operating income.

Speaker #2: And that is now showing in item number one. You will see also there is a 130 million Saudi real impact that is mainly related to one of the derivatives that we have terminated last year and had a negative impact on us.

Speaker #2: So here you can see it is a positive variance. Due to the impact of last year. And the third item is mainly related to an NCI different between this period and the same period of last year.

Speaker #2: So that's also a positive variance of 125 million. Together with all these positive variances, there is a what we have explained just now, the 763 million total negative variance for the operating income.

Speaker #2: This is one of the slides that we refer always to put it in the half years to give you a perspective. Of the different building blocks of Aqua operating business model.

Abdulhameed Al Muhaidib: This is one of the slides that we prefer always to put it in the H1 to give you a perspective of the different building blocks of Acwa operating business model. You will witness immediately that the development and construction services agreement has dropped significantly, almost 50%, and that has contributed only SAR 350 million to basically our net income. The positive impact, you will see it combined between Acwa operation and the net income that came from the assets under operation. You will see almost in line 20% increase in the other operating income, mainly related to better cash management for the same period of 2026 compared to 2025. The overall impact on expenses, which is item number F, is almost the same.

Speaker #2: So you will witness immediately that the development and construction services agreements has dropped significantly almost 50%. And that has contributed only 350 million Saudi real to basically our net income.

Speaker #2: The positive impact—you will see it combined between Aqua operation and the net income that came from the assets under operation. Then you will see almost in line a 20% increase in the other operating income, mainly related to better cash management for the same period of 2026 compared to 2025.

Speaker #2: And the overall impact or expenses, which is item number F, it's almost the same. The only impact is 8% related to the same derivative that we just talked about and that has a loss impact in 2025.

Abdulhameed Al Muhaidib: The only impact is 8% related to the same derivative that we just talked about, and that has a loss impact in 2025. Moving from the net income to the cash. We start with the Parent Operating Cash Flow. You will see the distribution from the projects has improved almost 50% to SAR 838 million, whereas the contribution from the development and construction service agreements has dropped to SAR 982 million. That's around 11% lower compared to the same period of last year. Finally, you will see that there is almost a use of SAR 935 million for all the expenses and G&A, the CAD and CapEx investment for that period, which give us an end POCF or Parent Operating Cash Flow of SAR 885 million.

Speaker #2: Moving from the net income to the cash. So we start with the current operating cash flow. You will see the distribution from the projects has improved almost 50% to 100 to 838 million.

Speaker #2: Whereas the contribution from the development and construction service agreements has dropped to 982. So that's around 11% lower compared to the same period of last year.

Speaker #2: And finally, you will see that there is almost a use of 935 expenses and GNA, the CAT and CAPEX investment for that period, which give us an end POCF or current operating cash flow of 885 million Saudi real.

Speaker #2: When it comes to the sources and uses of cash for this period, we start from where we ended on the last slide, which is the 885, plus the opening cash balance of SAR 6.1 billion.

Abdulhameed Al Muhaidib: When it comes to the sources and uses of the cash for this period, we start from where we ended last slide, which is the SAR 885 million plus the opening cash balance of SAR 6.1 billion. You will see that there has been a total use of SAR 1.1 billion. Main use was for the actual investment. You see 72% of the cash has been used for actual investments, whereas 17% of the cash was used for the financial charges on Sukuk and other instruments. 11% was used for the share buyback, which was a continuation of the program announced almost one and a half year ago.

Speaker #2: You will see that there has been a total use of 1.1 billion Saudi real, mainly mainly done main uses was for the actually actual investment.

Speaker #2: So you will see 72% of the cash has been used for actual investments. Whereas 17% of the cash was used for the financial charges on Sukuk and other instruments.

Speaker #2: And 11% was used for the share buyback, which was a continuation of the program announced almost one and a half year ago. When it comes to the net debt to leverage ratio or net debt to current operating cash flow ratio, I would really like to start from billion Saudi real, which is the total unbalance sheet et financial basically financing and funding facilities.

Abdulhameed Al Muhaidib: When it comes to the net debt to leverage ratio or net debt to Parent Operating Cash Flow ratio, I would really like to start from the SAR 32.3 billion, which is the total on-balance sheet basically financing and funding facilities. Out of that, the dark blue, which is the SAR 9.8 billion, is the recourse debt, while the rest of that debt is non-recourse. If you pick up the SAR 9.8 billion, which is the recourse debt on the balance sheet, and add the SAR 17.7 billion, which is the off-balance sheet but still recourse to Acwa Power, which is all the EBNs and the equity LCs and so on, you will land at around SAR 27 billion. If you take out the cash, which is around SAR 5.8 million, your net leverage will be around SAR 21 billion.

Speaker #2: Out of that, the dark blue which is the 9.8 is the recourse debt, where the rest of that debt is non-recourse. So if you pick up the 9.8 billion, which is the recourse debt on the balance sheet and add the 17.7 billion, which is the off balance sheet but still recourse to Aqua Power, which is all the EBLs and equity and the equity LCs and so on, it you will land at around 27 billion Saudi real.

Speaker #2: And if you take out the cash, which is around SAR 5.8 million, your net leverage will be around SAR 21 billion. And taking the POCF that we explained earlier, the net debt to POCF will land at a 6.6 multiple.

Abdulhameed Al Muhaidib: Taking the UCF that we explained earlier, the net debt-to-POCF will land at 6.6x multiple. This is in line with the guidance that we have given earlier, where most of the impact of that increase in leverage is related to additional investments into our pipeline. In this slide, we are trying to explain what we have announced earlier when it comes to the dividends. The 2025 proposed dividend is a bit straightforward. We are talking about SAR 353 million, equivalent to SAR 0.46 per share, and this is a 19% payout ratio for the year, subject to the general assembly this month. It will be subject for shareholder approval. We will be able to distribute that amount.

Speaker #2: And this is in line with the guidance that we have given earlier, where most of the impact of that increase in leverage is related to additional investment into our pipeline.

Speaker #2: In this slide, we are trying to explain what we have announced earlier when it comes to the dividends. So the 2025 proposed dividends is a bit straightforward.

Speaker #2: We are talking about 353 million Saudi real, equivalent to 46 halalas per share. And this is a 19% payout ratio for the year, subject to the general assembly by this month.

Speaker #2: It will be basically subject for their shareholder approval. We will be able to distribute that amount. When it comes to the what comes after that, really we tried to work extensively between the management and the board on what will be the best framework that we can continue the journey of Aqua for the next five years.

Abdulhameed Al Muhaidib: When it comes to what comes after that really, we try to work extensively between the management and the board on what will be the best framework that we can continue the journey of Acwa for the next five years. There is definitely a big emphasis on the growth factor. We continue to remain focused to invest between SAR 2 billion to SAR 2.5 billion of cash into the growth, while at the same time give a bit of guidance to the investors and the shareholders on what will be the distribution framework for the period at the same time. We have landed with a proposed 30% payout ratio, and that payout ratio will start to kick in 2027 for the audited financials of 2026.

Speaker #2: There is definitely a big emphasis on the growth factor. And we continue to remain focused to invest between two to 2.5 billion dollar power cash into the growth, while at the same time give a bit of guidance to the investors and the shareholders on what will be the distribution framework for the period at the same time.

Speaker #2: So we have landed with a proposed 30% basically payout ratio. And that payout ratio will start to kick in in 2027 for the period of for the audited financials of 2026.

Speaker #2: At the same time, we try to maintain or give priority for our cash to be used in investments. So that's where we have proposed a hybrid solution between cash and non-cash, basically a dividend framework, to maintain the priority for growth definitely, but also to give a minimum 50% of the whole payout ratio to be distributed in cash.

Abdulhameed Al Muhaidib: At the same time, we try to maintain or give a priority for our cash to be used in the investments. That's where we have proposed a hybrid solution between cash and non-cash dividends framework, to maintain the priority for the growth, definitely, but also to give a minimum 50% of the whole payout ratio to be distributed in cash. I will pause here, and we'll hand it over to Oscar to get into the Q&A section. Thank you.

Speaker #2: I will pause here and we'll hand it over to Ozgur to get into the Q&A section. Thank you.

Speaker #1: Thank you. Thank you, Abdulhamid. Thank you, Dr. Samir and Lucy. I think we can open the forum for the P&A now.

Ozgur Serin: Thank you. Thank you, Abdulhameed. Thank you, Samir. Lucy, I think we can open the forum for the Q&A now.

Speaker #3: Thank you. If you would like to ask a question, please press the raise hand icon now if you've joined us on Zoom. If you've joined on the telephone lines, please press star followed by one on your telephone keypad.

Operator: Thank you. If you would like to ask a question, please press the raise hand icon now if you've joined us on Zoom. If you've joined on the telephone lines, please press star followed by one on your telephone keypad. Alternatively, you can use the Q&A text box on Zoom. The first question today goes to Ricardo Rezende. Please go ahead.

Speaker #3: Alternatively, you can use the Q&A text box on Zoom. The first question today goes to Ricardo Resendi. Please go ahead.

Speaker #4: Hello, good afternoon. Thanks for taking my question. If I make a couple of questions. First one, on the interest on the US market, how do you see the competition there and what would be the plan?

Ricardo Rezende: Hello. Good afternoon. Thanks for taking my question. If I may, a couple questions. First one, on the interest on the US market, how do you see the competition there, and what would be the plan? Would you have any specific geographies within the US that would rather focus on any specific technologies as well? The second question is on this announcement on the exclusivity on exporting the green fuels from Saudi Arabia. Would you be possible to provide us a bit more information on how would that work in practice? Would you take a fixed fee per unit of molecule exported? Would that be a percentage? How would that work? Thank you.

Speaker #4: Would you have any specific geographies within the US that would rather focus on any specific technologies as well? And then the second question is on this announcement on the exclusivity on exporting the green fuels from Saudi Arabia.

Speaker #4: Would you be possible to provide us a bit more information on how that work in practice? Would you take a fixed fee per unit of molecule exported?

Speaker #4: Would that be a percentage? How would that work? Thank you.

Speaker #2: Let me start by talking about the market and entering into the US. I mean, the US is the largest electricity market in the world. And definitely, it is going through tremendous growth as we speak right now because of electrification, and also because of the data center boom that's happening in the United States.

Samir J. Serhan: Let me start about the market entry into the US. The US is the second-largest electricity market in the world, and definitely going through tremendous growth as we speak right now because of the electrification and also because of the data centers boom that's happening in the United States. It's a very good fit for us. It's really that potential is really across all of our verticals. That means it's renewable, wind, solar storage. It's basically gas to power, and it's also water desalination. We really see opportunities across all of these verticals that we're planning to pursue. When it comes to the mandate of the government, basically for a green hydrogen export, appreciate the question, but I think it's a little bit too early right now.

Samir Serhan: Let me start about the market entry into the US. The US is the second-largest electricity market in the world, and definitely going through tremendous growth as we speak right now because of the electrification and also because of the data centers boom that's happening in the United States. It's a very good fit for us. It's really that potential is really across all of our verticals. That means it's renewable, wind, solar storage. It's basically gas to power, and it's also water desalination. We really see opportunities across all of these verticals that we're planning to pursue. When it comes to the mandate of the government, basically for a green hydrogen export, appreciate the question, but I think it's a little bit too early right now.

Speaker #2: It's a very good fit for us. And it's really that potential is really across all of our verticals. So that means it's renewable wind, solar storage, it's basically gas to power, and it's also water desalination.

Speaker #2: And we really see opportunities across all of these verticals that we're planning to pursue. When it comes to the mandate of the government basically for a green hydrogen export, appreciate the question.

Speaker #2: But I think it's a little bit too early right now. I mean, as you know, we are doing the feed for the Yanbu project, which is a twice the size of the NEOM project.

Samir J. Serhan: As you know, we are doing the FEED for the Yanbu project, which is twice the size of the NEOM project. NEOM is 1.2 million ton of green ammonia, and we are currently finishing the FEED for Yanbu, which is twice the size, which is going to be done in phases. That really would be, when it goes into execution, will be a huge market for us to capitalize on this mandate to export green hydrogen or its derivatives to the rest of the world.

Samir Serhan: As you know, we are doing the FEED for the Yanbu project, which is twice the size of the NEOM project. NEOM is 1.2 million ton of green ammonia, and we are currently finishing the FEED for Yanbu, which is twice the size, which is going to be done in phases. That really would be, when it goes into execution, will be a huge market for us to capitalize on this mandate to export green hydrogen or its derivatives to the rest of the world.

Speaker #2: NEOM is 1.2 million ton of green ammonia. And we are currently finishing the feed for Yanbu, which is a twice the size, which is going to be done in phases.

Speaker #2: And that really would be when it goes into execution, will be a huge market for us to capitalize on this mandate to export a green hydrogen or its derivative to the rest of the world.

Speaker #4: Yeah. And maybe if you allow me, Dr. Samir, I would like to add in this specific second question in reality, what we have witnessed in the green fuels in general, that the development cost is extremely high.

Abdulhameed Al Muhaidib: Yeah. Maybe if you allow me, Dr. Samir, I would like to add on this specific second question. In reality, what we have witnessed in the green fuels in general is that the development cost is extremely high. Definitely as part of the Vision 2030 target, there is a lot of emphasis on green showing. Here, when it comes to the exclusivity being mandated to Acwa, really is to give Acwa the time and value to spend that development cost that is significant in value to allow us to build these large-scale projects as mentioned by Dr. Samir when it comes to the next in line is Yanbu.

Speaker #4: And definitely as part of the vision 2030 targets, there is a lot of emphasis of green shoring. And here when it comes to the exclusivity being mandated to Aqua, really is to give Aqua the time and value to spend that development cost that is significant in value, to allow us to build these large scale projects as mission by Dr. Samir when it comes to the next in line is the Yanbu and for us to allow to be allowed as a company to continue investing heavily on the development of these projects this exclusivity give us a real comfort and real reward for all the spending that will end up before the period started.

Abdulhameed Al Muhaidib: For us to be allowed as a company to continue investing heavily on the development of this project. This exclusivity gives us a real comfort and real reward for all the spending that will end up before the period started. When it comes to your question about any specific fees or basically payments to Acwa, definitely this is not on the table. There is no specific fees that will be collected by Acwa for that. The real mandate is for Acwa to lead that specific development on the future, but not specifically to get any fees for others. Sorry, Dr. Samir, go ahead.

Speaker #4: When it comes to your question about any like specific fees or basically payments to Aqua, definitely this is not on the table. So there is no specific basically fees that will be collected by Aqua for that.

Speaker #4: The real mandate is for ACWA to leave that specific development in the future, but not specifically to get any fees from others.

Speaker #1: And sorry, Dr. Samir, go ahead.

Speaker #2: Yeah. And I really just — I really want to emphasize this again. I mentioned it earlier. This really represents a strong vote of confidence in Acwa's execution capability and our role in supporting Saudi Arabia's long-term energy ambitions.

Samir J. Serhan: Yeah. I really want to emphasize this again, I mentioned it earlier. This really represents a strong vote of confidence in Acwa execution capability and our role in supporting Saudi Arabia long-term energy ambitions. Honestly, when you're into this business of green power export or green hydrogen export, competitiveness is a key. The kingdom really offers that by significant margin when it comes to wind, solar, storage, when it comes to really hydrogen, ammonia, generation, shipping routes. We do believe that we have a very competitive solution that we really can capitalize on around the world. Asghar?

Samir Serhan: Yeah. I really want to emphasize this again, I mentioned it earlier. This really represents a strong vote of confidence in Acwa execution capability and our role in supporting Saudi Arabia long-term energy ambitions. Honestly, when you're into this business of green power export or green hydrogen export, competitiveness is a key. The kingdom really offers that by significant margin when it comes to wind, solar, storage, when it comes to really hydrogen, ammonia, generation, shipping routes. We do believe that we have a very competitive solution that we really can capitalize on around the world. Ozgur?

Speaker #2: And honestly, when you're into this business of green power export or a green hydrogen export, competitiveness is a key. And the kingdom really offer that by significant margin when it comes to wind, solar, storage, when it comes really hydrogen ammonia generation, shipping, routes, so we do believe that we have a very competitive solution that we really can capitalize on around the world.

Speaker #1: Yeah. Dr. Samir, I was just going to respond to Rick's question in the US about specific locations. But Rick, it is it's at early stage as Dr. Samir has mentioned that we are in our exploratory stage for US, obviously it's too early to talk about it specific locations as we have material progress.

Ozgur Serin: Yeah. Dr. Samir, I was just going to respond to Rick's question in the US about specific locations. Rick, it's at early stage, as Dr. Samir has mentioned, that we are in our exploratory stage with the US. Obviously, it's too early to talk about any specific locations. As we have material progress, of course, we're going to come to the market about our intentions going forward.

Speaker #1: Of course, we're going to come to the market about our intentions going forward.

Speaker #4: And if I may just follow up two things in the US. How would you compare the expected returns there versus your other geographies? And as there will be a new market entry, would you follow sort of a similar strategy than you had in China with some acquisitions or are you looking for something organically in a new project?

Ricardo Rezende: If I may just follow up, two things in US. How would you compare the expected returns there versus your other geographies? As this will be a new market entry, would you follow sort of a similar strategy that you had in China with some acquisitions, or are you looking for something organically in the new projects?

Speaker #2: We definitely see the US market offering us same returns that we do for other projects around the world and even better. So we definitely confident that this is going to be positive.

Samir J. Serhan: We definitely see the US market offering us same returns that we do for other projects around the world, and even better. We're definitely confident that this is going to be positive. This is not about volume, it's not about the quantity, it's really about the quality. We do see that this is going to really lead into more sustainable, profitable growth for Acwa. As Asghar mentioned, it's really too early to start speculating, but our preference would be really is to go for acquisition, basically for a platform, instead of building a greenfield at the beginning. That would be easier approach to really tackle.

Samir Serhan: We definitely see the US market offering us same returns that we do for other projects around the world, and even better. We're definitely confident that this is going to be positive. This is not about volume, it's not about the quantity, it's really about the quality. We do see that this is going to really lead into more sustainable, profitable growth for Acwa. As Ozgur mentioned, it's really too early to start speculating, but our preference would be really is to go for acquisition, basically for a platform, instead of building a greenfield at the beginning. That would be easier approach to really tackle.

Speaker #2: This is not about volume. It's not about quantity. It's really about equality. So we do see that this is going to really lead to more sustainable, profitable growth for Acwa.

Speaker #2: It's as Gar mentioned, it's really too early to start speculating but our preference would be really is to go for acquisition basically for a platform I mean instead of building a green field at the beginning.

Speaker #2: That would be easier approach to really tackle so.

Speaker #4: Okay. Thank you very much.

Ricardo Rezende: Okay. Thank you very much.

Speaker #2: Thank you.

Samir J. Serhan: Thank you.

Samir Serhan: Thank you.

Speaker #3: Thank you. The next question comes from Anna Antonova of JPMorgan. Your line is now open. Please go ahead.

Operator: Thank you. The next question comes from Anna Antonova of JP Morgan. Your line is now open. Please go ahead.

Operator: Thank you. The next question comes from Anna Antonova of JPMorgan. Your line is now open. Please go ahead.

Speaker #5: Yes. Good afternoon. Thank you for the presentation. Just a couple of follow-up questions from our side. Just on the last one of market opportunities, I wonder how do you view the US versus China market opportunities, for example, and does this announcement of you looking kind of currently you commented early stages in the US into the US imply that you are maybe shifting your geographical priorities in terms of kind of project development pipeline?

Anna Antonova: Yes. Good afternoon. Thank you for the presentation. Just a couple of follow-up questions from our side. Just on the last one of the US market opportunities. I wonder, how do you view the US versus China market opportunities, for example? Does this announcement of you looking, currently you commented early stages, into the US imply that you are maybe shifting your geographical priorities in terms of project development pipeline? That is the first question.

Speaker #5: That's the first question.

Speaker #2: Okay. Thanks, Anna. I guess let me respond to this we currently have five regions where we operate. As you know, it's KSA, Middle East is one, Africa, Central Asia, China, and Southeast Asia.

Samir J. Serhan: Okay. Thanks, Anna. I guess let me respond to this. We currently have five regions where we operate. As you know, it is KSA, Middle East is one, Africa, Central Asia, China, and Southeast Asia. The US would be number six. We really do not look at it one versus the other. We bring one, take one out. It really gives us more opportunity, more pipeline where we can be more selective, and really deliver where we can have a lower risk profile, better returns, where we can add more value. It is really these regions will be competing for this selectivity, and it is not one versus the other.

Samir Serhan: Okay. Thanks, Anna. I guess let me respond to this. We currently have five regions where we operate. As you know, it is KSA, Middle East is one, Africa, Central Asia, China, and Southeast Asia. The US would be number six. We really do not look at it one versus the other. We bring one, take one out. It really gives us more opportunity, more pipeline where we can be more selective, and really deliver where we can have a lower risk profile, better returns, where we can add more value. It is really these regions will be competing for this selectivity, and it is not one versus the other.

Speaker #2: I mean, and the US would be number six. We're really don't look at it one versus the other. We bring one, take one out.

Speaker #2: It's really gives us more opportunity more pipeline where we can be more selective. I mean, and really deliver where we can have a lower risk profile, better returns where we can add more value.

Speaker #2: So it's really these regions will be competing for these selectivity. And it's not. One versus the other.

Speaker #5: That's very clear. Thank you. Our second question is following up on the green fuels topic. Could you please maybe comment on the current status of the neon green hydrogen project?

Anna Antonova: That is very clear. Thank you. Our second question is following up on the green fuels topic. Could you please maybe comment on the current status of the NEOM green hydrogen project? Do you see any delays there? When can we expect it to start commercial operations?

Speaker #5: Kind of do you see any delays there and when can we expect it to start commercial operations?

Speaker #2: The plan is basically commercial operation will be next year. I don't want to be to be more specific, but that is really top target.

Samir J. Serhan: The plan is basically commercial operation will be next year. I don't want to be more specific, but that is really the target. We currently have the consortium, basically the joint venture there. We have 9,500 people at the job site. It's basically construction is finished. It's really more now into commissioning and the target to go into commercial operation next year. It's really, we would love to invite you all to visit the site because it's really a very, very impressive facility. I've been around the plants all over the world. This is really very unique and we'll definitely would love to invite you to come and to see this marvel.

Samir Serhan: The plan is basically commercial operation will be next year. I don't want to be more specific, but that is really the target. We currently have the consortium, basically the joint venture there. We have 9,500 people at the job site. It's basically construction is finished. It's really more now into commissioning and the target to go into commercial operation next year. It's really, we would love to invite you all to visit the site because it's really a very, very impressive facility. I've been around the plants all over the world. This is really very unique and we'll definitely would love to invite you to come and to see this marvel.

Speaker #2: We currently have the consortium basically the joint venture there. We have like 9,500 people at the job site. It's basically a construction is finished.

Speaker #2: It's really more now into commissioning. And the target to go into commercial operation next year. And it's really we would love to invite you all to visit the site because it's really a very, very impressive facility.

Speaker #2: I've been around the plants all over the world. This is really very unique. And we'll definitely would love to invite you to come and to see this marvel.

Speaker #5: We would love to actually.

Speaker #2: Your question, Anna.

Anna Antonova: We would love to actually-

Ozgur Serin: Your question, Anna?

Speaker #5: Scale. Yes, thank you. Final question from our side is on the operating trends of your assets and the portfolio. If you could comment on the power and water availability trends going into the second half of this year, maybe in comparison to H1.

Anna Antonova: represented scale. Yes. Thank you. Final question from our side is on the operating trends of your assets and the portfolio. If you could comment on the power and water availability trends going into H2 of this year, maybe in comparison to H1. I understand that Q1 and especially Q2 was a quite challenging quarter. Do you see any normalization in Q3 or it will be a bit more of the same? How should we think about it? Thank you.

Speaker #5: I understand that Q1 and especially Q2 was a quite challenging quarter. Do you see any normalization in Q3 or it will be a bit more of the same?

Speaker #5: So how should we think about it? Thank you.

Speaker #2: I think for the first half, our numbers for availability, I believe they were better than the comparable half for last year. And we do expect it's going to be the same or even better for the second half, Anna.

Ozgur Serin: I think for H1, our numbers for availability, I believe they were better than the comparable half for last year, and we do expect it's going to be the same or even better for H2, Anna.

Speaker #5: Thank you.

Anna Antonova: Thank you.

Speaker #3: Thank you. The next question comes from Prateek Bhatnagar of Jefferies. Your line is now open. Please go ahead.

Operator: Thank you. The next question comes from Prateek Bhatnagar of Jefferies. Your line is now open. Please go ahead.

Speaker #1: Yeah. Thanks for taking my question. I have to. The first is on the timing shift you talked about in the project development milestones. Could you quantify it a bit so that it's easier for us to kind of forecast what the development and construction revenues might be and how much they have shifted from the first half into the second half and maybe into 2026, 2027?

Prateek Bhatnagar: Yeah. Hi, thanks for taking my question. I have two. The first is on the timing shift you talked about in the project development milestones. Could you quantify it a bit so that it's easier for us to forecast what the development and construction revenues might be and how much they have shifted from H1 into H2 or maybe into 2026, 2027? That's number one. The second question is on the outages you talked about in the CSP and CCGT. Could you give some color on that? What are they? How long they may last? Thanks.

Speaker #1: That's number one. The second question is on the outages you talked about in the CSP and CCGT. Could you give some color on that?

Speaker #1: What are they? How long they may last?

Abdulhameed Al Muhaidib: Yeah. Should I go ahead? This is for the first question, I think when it comes to the development. If you look at basically some of the projects that we have submitted the bids for it during the H1, most of it have not been moving to the stage 2 of development, which means announcing the preferred bidder. Except for one, there has been none of them that has been moved to that phase. Similarly, also, if you look at the project that has been awarded and we have signed the PPA, we have not yet signed all these financial closes. It's a very minimum, less than SAR 4 billion of financial closes that we have achieved during the H1. I think given multiple reasons for that. We do believe that during this upcoming 6 months, we will be able to achieve some of these milestones.

Speaker #6: So should I go ahead? This is for the first question. I think when it comes to the development, if you look at basically some of the project that we have submitted the bid for it during the first half, most of it have not been moving to the second stage of development, which means announcing the preferred bidder and except for one, there has been none of them that has been moved to that phase.

Speaker #6: Similarly, also if you look at the project that has been awarded and we have signed the PPA, we have not yet signed or reached financial closes.

Speaker #6: And it's a very minimum, less than 4 billion real of financial closes that we have achieved during the first half. I think given multiple reasons for that, we do believe that during this upcoming six months, we will be able to achieve some of these milestones.

Speaker #6: I can see in the pipeline there is at least two financial closes we are clearly targeting to achieve in the next two to three months.

Abdulhameed Al Muhaidib: I can see in the pipeline there is at least 2 financial closes we are clearly targeting to achieve in the next 2 to 3 months. Similarly, also on the refinancing of specific projects. In overall, the trend is really moving positively towards closing several of these milestones before the end of the year. This is the current status quo. What we have seen unique this year, unfortunately, is that geopolitical escalations continue to go on a vulnerable basically timing. You see it up and down. With that, really, the prediction for the remaining of the year become extremely difficult. When I say or when we said 6 to 12 months, really this is based on what we have seen and what we have expect based on the current basically standing of the tension.

Speaker #6: Similarly, also on the refinancing of specific projects. So in overall, the trend is really moving positively toward closing several of these milestones before the end of the year.

Speaker #6: This is the current status quo. But what we have not we have seen unique this year, unfortunately, is the geopolitical escalations continue to go on a vulnerable basically timing.

Speaker #6: So you see it up and down. And with that really the prediction for the remaining of the year become extremely extremely difficult. When I say or when we said 6 to 12 months, really this is based on what we have seen and what we have expect based on the current basically standing of the tension.

Speaker #6: But of course, this will be reviewed, and we will update you in the next quarter in case there is any further development.

Abdulhameed Al Muhaidib: Of course, this will be reviewed, and we will update you on the next quarter in case if there is any basically other further developments. That's on the development side. You have specifically asked a question 2.

Speaker #6: That's on the development side. And then you have specifically asked the second question.

Speaker #1: Until I get the question was about the outages, the CSP and CCGT.

Ozgur Serin: Yeah. Abdulhameed, the question was about the outages, the CSP and CCGT.

Speaker #6: Yes. So yeah.

Abdulhameed Al Muhaidib: Yeah.

Ozgur Serin: May you answer? Yeah, go ahead, please.

Speaker #1: Go ahead, please.

Speaker #6: Yes. So we I don't want to go to the specific assets details, but let me give you a general perspective. For example, there is two of our assets.

Abdulhameed Al Muhaidib: Yes. I don't want to go to the specific assets details, but let me give you a general perspective. For example, there is two of our assets, one is CSP and one is CCGT, that they had a unique outage or long force outage that we have built and invested additional CapEx to bring them back to operation. One of them in October. It will be, Inshallah, full in operation, and we have built a redundancy into the new kind of operation model for that specific asset. The same thing on another asset that we have where we have done an additional investment based on which we believe that this should solve the issue with a longer term. The rest of the assets, I think Mr. Samir has already highlighted.

Speaker #6: One is CSP and one is CCGT. They had a unique outage or a long forced outage, and we have built and invested additional capex to bring them back to operation.

Speaker #6: One of them in October it will be inshallah full in operation. And we have built a redundancy into the new kind of operation model for that specific asset.

Speaker #6: The same thing on another asset that we have, where we have made an additional investment, based on which we believe that this should solve the issue in the longer term.

Speaker #6: The rest of the assets, I think Dr. Samir has already highlighted. If you look at the numbers, overall availability is 92 compared to 91 last year.

Abdulhameed Al Muhaidib: If you look at the numbers, our availability is 92% compared to 91% last year, that's definitely better, and we are committed to deliver the same. Renewable is 98.1% compared to 96% of the same period of last year. Water is also 98.4% compared to 98.3%. Overall, the trend is definitely positive compared to the same period of last year.

Speaker #6: So that's definitely better. And we are committed to deliver the same renewables 98% 0.1 compared to 96% of the same period of last year.

Speaker #6: Water is also 98.4 compared to 98.3. So overall, the trend is definitely positive compared to the same period of last year.

Speaker #1: Thanks a lot. If I may just follow up, the curtailment in the Saudi two projects which was announced earlier this year—what's the update on that?

Prateek Bhatnagar: Thanks a lot. If I just may follow up. The curtailment in the Saudi two projects, which was announced earlier this year, what's the update on that?

Speaker #6: Yeah. So if you recall, we announced the curtailment at that time and the availability of the power was around 10% for each for each of the two assets.

Abdulhameed Al Muhaidib: Yeah. If you recall, we announced the curtailment at that time, and the availability of the power was around 10% for each of the two assets. There is a progress. I will not say it's a fast-track progress, but it is moving in the right direction. Today, one of the assets is around 50% back into operation. The other one is 45%. It is moving step by step into that, and hopefully we are continuously working with the larger stakeholders to Inshallah bring these assets back into full operation. That's one part, which is the part of how we look at it going forward.

Speaker #6: There is the progress. I will not say it's a fast track progress, but it is moving in the right direction. Today, one of the assets are around 80% back into operation.

Speaker #6: The other one is 45%. So it is moving. Step by step into that and hopefully we are continuously working with the larger stakeholders to inshallah bring these assets back into full operation.

Speaker #6: So that's one part which is the part of how we look at it going forward. But definitely there is the other part which was all the basically curtailed energy that being still under discussion with the off taker on the basically on the outcome of that basically revenue that has been generated where we believe that it is definitely part of our off take rights and this is still a journey that we have to take with the competent basically with the off taker in this case.

Abdulhameed Al Muhaidib: Definitely there is the other part which was all the basically curtailed energy that being still under discussion with the off-taker on the outcome of that basically revenue that has been generated, where we believe that it is definitely part of our offtake rights, and this is still a journey that we have to take basically with the off-taker in this case. Thanks a lot.

Speaker #1: Oh, thanks a lot.

Speaker #2: Thank you. The next question comes from Ildar Kaziev of HSBC. Your line is now open. Please go ahead.

Operator: Thank you. The next question comes from Ildar Khaziev of HSBC. Your line is now open. Please go ahead.

Speaker #7: Thank you so much. Hello. I have a question—another question about the exclusive rights to export greenfields. Is this arrangement affecting the existing offtake arrangement at NEOM, where I think Linda, I think, was an offtaker?

Ildar Khaziev: Thank you so much. Hello. I have another question about the exclusive rights to export green fuels. Is this arrangement affecting the existing offtake arrangement at NEOM, where Linde, I think, was an off-taker?

Speaker #3: No, the agreement between the project company and air products, the off taker basically there is no impact to that. That 1.2 million ton of green ammonia a year that basically no change to that.

Samir J. Serhan: No, the agreement between the project company and Air Products, the offtaker, basically, there is no impact to that. That 1.2 million ton of green ammonia a year, basically no change to that.

Samir Serhan: No, the agreement between the project company and Air Products, the offtaker, basically, there is no impact to that. That 1.2 million ton of green ammonia a year, basically no change to that.

Speaker #7: So, it's still an off-taker. So, it's Air Products. It's still an off-taker, but the export rights for that output will still be with ACWA.

Ildar Khaziev: Air Products is still an offtaker, the export rights for that output will still be with Acwa at the same time?

Speaker #7: At the same time.

Speaker #3: I'm not really sure if I understand. I mean, Air Products is the 100% off-taker for this 1.2 million tons of green ammonia.

Samir J. Serhan: I'm not really sure if I understand. Air Products is the 100% offtaker for this 1.2 million ton of green ammonia.

Samir Serhan: I'm not really sure if I understand. Air Products is the 100% offtaker for this 1.2 million ton of green ammonia.

Speaker #7: And would that be the party which will also export the green ammonia, or was it going to be ACWA?

Ildar Khaziev: Would that be the party which will also export the green ammonia, or it was going to be Acwa?

Speaker #3: I mean, again, there is a joint venture between NEOM, ACWA, and Air Products to produce the product. That's the generation joint venture. They are going to be producing that ammonia.

Samir J. Serhan: There is a joint venture between NEOM, Acwa, and Air Products to produce the product. That's the generation joint venture. They're going to be producing that ammonia and basically put it in a tank, and the offtaker basically will take the product from Saudi Arabia and ship it around the world where it's going to be used. That's the offtaker basically taking the product.

Samir Serhan: There is a joint venture between NEOM, Acwa, and Air Products to produce the product. That's the generation joint venture. They're going to be producing that ammonia and basically put it in a tank, and the offtaker basically will take the product from Saudi Arabia and ship it around the world where it's going to be used. That's the offtaker basically taking the product.

Speaker #3: And basically put it in the tank and the off taker basically will have the basically take the product from Saudi Arabia and ship it around the world where it's going to be used.

Speaker #3: So that's the off taker basically taking the product.

Speaker #7: I see. Thank you. And just coming back to the outages at CCGTs, are these new units or are they the old ones?

Ildar Khaziev: I see. Thank you. Just coming back to the outages at CCGTs. Are these new units or are the old ones?

Speaker #3: I mean, really, when it comes to it, you do have planned outages for these plants because you really need to do regular maintenance.

Samir J. Serhan: Really, you do have plant outages for these plants because you really need to do regular maintenance. At the same time, you do have sometimes these forced outages that basically take you because an instrument or a device or rotating equipment. You have these things, please understand, what I mentioned before, our availability is 92% for all our power portfolio, 98% even for our renewables. This is pretty high, standard-wise. Also the same thing on the water, is 98%. Really, we're proud of Acwa operation team, basically that do the O&M for these facilities. Operating these machines, heavy rotating equipment, you do have sometimes trips here and there.

Samir Serhan: Really, you do have plant outages for these plants because you really need to do regular maintenance. At the same time, you do have sometimes these forced outages that basically take you because an instrument or a device or rotating equipment. You have these things, please understand, what I mentioned before, our availability is 92% for all our power portfolio, 98% even for our renewables. This is pretty high, standard-wise. Also the same thing on the water, is 98%. Really, we're proud of Acwa operation team, basically that do the O&M for these facilities. Operating these machines, heavy rotating equipment, you do have sometimes trips here and there.

Speaker #3: But at the same time, you do have sometimes these forced outages. That basically take you because an instrument or a device or rotating equipment.

Speaker #3: So you have these things. But it please understand in what I mentioned before, our availability is 92% for all our power portfolio. 98% even for our renewable.

Speaker #3: So this is pretty high. I mean, standard wise and also the same thing on the water is 98%. So really we're proud of Aqua operation team basically that do the O&M for these facilities.

Speaker #3: But operating these machines—heavy rotating equipment—you do have, sometimes, it trips here and there.

Speaker #7: This is very clean. Thank you so much.

Ildar Khaziev: This is very clear. Thank you so much.

Speaker #3: Thank you.

Samir J. Serhan: Thank you.

Samir Serhan: Thank you.

Speaker #2: Thank you. The next question is a text question from Amberine Giovani of Ajij Capital. He says, thank you. Is there any update on the solar power projects that were facing dispatch issues?

Operator: Thank you. The next question is a text question from Ambareen Ijawneh of Arqaam Capital, who says, thank you. Is there any update on the solar power projects that were facing dispatch issues? How do you manage interest payments in such situations?

Speaker #2: How do you manage interest payments in such situations?

Speaker #6: Yeah. I think we already covered this question because it was the same question as earlier. I think when it comes to specifically on the interest so far, these two projects had cash position that have already allowed them to pay their interest.

Abdulhameed Al Muhaidib: Yeah, I think we already covered this question because it was the same question as earlier. I think when it comes to specifically on the interest, so far, these two projects had cash positions that have already allowed them to pay their interest. There is no issues when it comes to that in the past, and of course, as I have highlighted, there is a gradual increase on their dispatch ability. We will continue to assess on a quarterly basis their ability to maintain their payments of the interest and of course, the principal.

Speaker #6: So there are no issues when it comes to that in the past. And, of course, as I have highlighted, there is a gradual increase in their dispatchability.

Speaker #6: And we will continue to assess in a quarterly basis. Their ability to maintain their payments of the interest and of course the principal.

Speaker #2: Thank you. The next question is from Hamad El Babi of STC who asks, is there a plan to adjust the dividend rules?

Operator: Thank you. The next question is from Hamad Al-Baiti of stc, who asks: Is there a plan to adjust the dividend rules?

Speaker #6: Can we get a bit of more explanation? What do you mean by adjust the dividends rules?

Abdulhameed Al Muhaidib: Can we get a bit of more explanation? What do you mean by adjust the dividends rules?

Operator: While we wait for that, as a reminder to ask a question, please press the raise hand icon now if you've joined us on Zoom. If you've joined us on the telephone lines, please press star followed by one on your telephone keypad. Alternatively, you can submit a text question via the Q&A box on the bottom of your screen.

Speaker #2: Whilst we wait for that, as a reminder, to ask a question, please press the 'Raise Hand' icon now if you've joined us on Zoom.

Speaker #2: If you've joined us on the telephone lines, please press star followed by one on your telephone keypad. Alternatively, you can submit a text question via the Q&A box on the bottom of your screen.

Speaker #6: Yeah. So maybe, if you can add an explanation to the question, I can explain generally that the dividends for 2025 are subject to shareholder approval.

Abdulhameed Al Muhaidib: Yeah. While maybe if he can add an explanation to the question, I can explain generally that the dividends for 2025 is subject to the shareholder approval. That's definitely up to the shareholders. They will approve it during this month. The dividends framework for the upcoming five years, as a framework, it has been already approved by the board. Of course, we will continue to view it based on the financial position of the company, the direction of the growth, and so on. It's just a framework where ultimately for each single year, the dividend distribution itself will be subject to the shareholders to approve it.

Speaker #6: So that's definitely up to the shareholders. They will approve it during this month. The dividends framework for the upcoming five years as a framework, it has been already approved by the board.

Speaker #6: Of course, we will continue to view it based on the financial position of the company, the direction of the growth, and so on. It's just a framework where, ultimately, for each single year, the dividend distribution itself will be subject to the shareholders to be approved.

Speaker #2: Thank you. As a final reminder to ask a question, please press the raise hand icon now. Press star followed by one on your telephone keypad.

Operator: Thank you. As a final reminder to ask a question, please press the raise hand icon now, press star followed by one on your telephone keypad, or you can submit a text question via the Q&A button on your browser. We have no further questions at this time, I'd like to hand back to Mr. Ozgur Serin for closing remarks.

Speaker #2: Or you can submit a text question via the Q&A button on your browser. We have no further questions at this time. So I'd like to hand back to Mr. Ozga Serin for closing remarks.

Speaker #5: Thank you very much Lucy and thank you very much all participants as well as the speakers at the company side. As you very well know, if you have any follow-up questions or new questions, you know where to reach us at.

Ozgur Serin: Thank you very much, Lucy, and thank you very much all participants as well as the speakers at the company side. As you very well know, if you have any follow-up questions or new questions, you know where to reach us at. Please do not hesitate, as usual, we will get back to you. With that, I would really like to thank everyone, including the operator, and wish you a good evening or a good day in front of you. Thank you.

Speaker #5: And please do not hesitate and as usual we will get back to you. With that, I would really like to thank everyone including the operator and wish you a good evening or a good day in front of you.

Speaker #5: Thank you.

Speaker #3: Thank you. Thank you.

Samir J. Serhan: Thank you.

Samir Serhan: Thank you.

Abdulhameed Al Muhaidib: Thank you.

Operator: This concludes today's call. Thank you all for joining. You may now disconnect your lines.

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Q2 2026 Acwa Power Co Earnings Call

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