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Gulf energy earnings have mixed feelingsMENA

Gulf energy earnings have mixed feelings

Saudi’s ACWA Power and the Abu Dhabi National Energy Company (Taqa) seem to have different feelings about earnings season.

ACWA just released its figures on Tuesday and recorded a net loss of $5.8m for Q3 2021, compared to a $144m net profit a year ago. The company mentioned lower revenues from its development and construction management services as the main driver for the drop and tax changes in Saudi Arabia that affected profit calculations.

On the other hand, the electricity-provider Taqa enjoyed an upswing in profits as its Q3 net income grew by three-fold on a year-on-year basis, reaching $382m. Revenues for the company also grew, seeing a YoY rise of 11% and reaching $3.3b. The CEO plans to use the funds to increase the company’s power generation capacity to 15 gigawatts by 2030. 

why it matters

Taqa’s shares were up by 0.8% yesterday at market close whereas ACWA was down by 1.4%.