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ACWA Power completed, on March 17, the sale of its entire 32% stake in Shuqaiq Water and Electricity Co. (Shuqaiq IWPP), equity accounted investee of the company, for SAR 391.5 million in cash, according to a bourse filing today, March 20.
The deal included the sale of 32% partial shareholding in the operation & maintenance (O&M) contract, which was previously with the company’s wholly owned subsidiary, First National Operations and Maintenance Co. (NOMAC), to Al Jomaih Energy and Water Co. after fulfilling all the terms of the sale agreement signed on Sept. 7, 2021.
At the closing date, the asset book value was estimated at SAR 398.4 million. The proceeds will be used for ACWA Power’s general corporate purposes.
The transaction did not result in any material financial impact on the company. There are no related parties.
The sale is part of ACWA Power’s capital recycling strategy, taking the firm a step closer to its target of reducing carbon intensity by 50% by 2030, compared to 2020 levels, and achieving net-zero emission by 2050.
Shuqaiq IWPP is an oil-fired asset located in Saudi Arabia, with 850 MW power and 212,000 cubic meter per day (m3/day) water desalination capacity. The project commenced commercial operations in 2011 and has a 20-year power and water purchase agreement offtake agreement expiring in 2031.
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