CEO Rami Moussilli
Alkhorayef Water and Power Technologies Co.'s (AWPT) capital increase aims to boost its growth and expansion strategy in the Kingdom, particularly in the water and wastewater sector. The move also affirms the company’s solvency by strengthening its capital base, CEO Rami Moussilli told Argaam.
On July 23, AWPT’s board of directors recommended increasing capital by 40% to SAR 350 million (35 million shares) from SAR 250 million (25 million shares) by distributing one bonus share for every 2.5 shares held.
The capital hike will be financed by capitalizing SAR 100 million from retained earnings.
AWPT is currently executing more than 80 contracts worth about SAR 6.2 billion in the water and wastewater sector, with revenues from the project backlog totaling SAR 4.5 billion, a 28% increase over the same period last year, Moussilli noted.
The company was awarded in the last quarter a 15-year long-term operation and maintenance contract for the sewage treatment plants in Riyadh's Manfouha district, where it will carry out renovations, improve efficiency, as well as operate and maintain three stations with a total capacity of 700 cubic meters per day, he added.
The growth in the Saudi water and wastewater sector is in line with the Saudi National Water Strategy 2030, which includes a number of programs such as expanding access to water and sewage services, reducing losses in the network, and reusing treated wastewater.
AWPT targets a large number of contracts for future projects, which will contribute to realizing this strategy with various parties, such as the National Water Co., the Water Transportation and Technologies Co., and the Saudi Water Partnerships Co., through construction contracts or long-term privatization contracts.
The company is one of the most qualified local players to execute these projects, given its long experience and leading role in the sector, the CEO added.
Moreover, the company continues to target periodic contracts for operation and maintenance projects, in which it owns the largest market share in the Kingdom. It also targets long-term operation and maintenance contracts for periods of up to 15 years for NWC's sewage treatment plants in various regions across the Kingdom, Moussilli added.
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