ACWA Power signs agreements for extending licence

ACWA Power Barka has signed three agreements with government entities to extend its licence until December 2021, the company said. These amendment agreements are for power and water purchase agreement, water purchase agreement for the second phase and natural gas supply agreement, which have been finalised with revised terms and conditions after negotiations with Oman Power and Water Procurement (OPWP) Company, ACWA Power Barka said in a disclosure statement posted on the Muscat Securities Market website.

Earlier, ACWA Power stated that the company’s total revenue for the first nine months of 2017 increased to OMR54.04 million, from OMR49.64 million for the same period last year. The growth was primarily attributable to higher power dispatch, higher capacity revenue from the existing plant, incremental revenue from the second-phase expansion project and the recognition of receivable from OPWP on account of a government risk event/material adverse change due to the change in tax laws.

However, the company’s net profit declined to OMR6.15 million for the first nine months of 2017, from OMR8.37 million for the same period last year. The fall in the net profit was mainly driven by one off impact of additional deferred tax liability, partially offset by higher power capacity revenue as explained above.


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