Qatar Electricity and Water Company Q.P.S.C. (QEWC) announced yesterday net profit of QR372m in the first quarter (Q1) of 2021, compared to QR320m in the first quarter of 2020, showing a growth of 16%.
Under the chairmanship of Minister of State for Energy Affairs, H E Saad bin Sherida Al Kaabi, the Board of Directors (BOD) of QEWC approved yesterday the financial results for the first quarter ended March 31, 2021.
QEWC reported revenue of QR601m compared to QR599m during the same period in 2020. Operating profits amounted to QR277m compared to QR273m during the same period in 2020.
The Earnings Per Share amounted to QR0.34 during the first quarter of 2021. Cash flows from operations remain strong when compared to the same period in the previous year. QEWC recorded operational cash flows of QR297m compared to operational cash flows of QR238m during the same period in the previous year.
With an existing market share of capacity in Qatar, 59% and 73% in electricity and water, respectively, QEWC remains the second largest utilities company in the field of power generation and water desalination in the Middle East and North Africa region.
QEWC owns and operates seven power and/or water stations in Qatar and has partnered with international companies to own and operate another 5 power and/or water companies. Despite the effects of the COVID-19 pandemic globally, QEWC’s operations remained stable in Q1 2021. QEWC has secured long-term Power and Water Purchase Agreements (“PWPAs”) with Kahramaa in addition to long-term fuel supply agreements with Qatar Petroleum (“QP”), limiting its exposure to the pandemic.
As a result, QEWC was able to maintain a strong credit rating of ‘A1’ with stable outlook from Moody’s during Q1, 2021. QEWC projects remain relatively unaffected and are making progress.
During Q1 2021, Umm Al Houl Power Company Expansion Project, which is 60% owned by QEWC, 30% by K1 Energy, and 5% by each of QP and Qatar Foundation, completed the commissioning activities and achieved full commercial operation with a total 61.45 MIGD of additional water capacity.
The Siraj-1 Solar Power Plant Project, QEWC’s latest project, reached its financial closure in July 2020 and will become the first of its kind to produce electricity using photovoltaic technology in Qatar.
Located in Al Kharsaah area, the plant will be able to produce 800 MW at full capacity and is expected to account for one tenth of the current peak electricity demand in Qatar.
The project will be executed via a Special Purpose Vehicle (“SPV”), 60% owned by Siraj Energy (a joint venture (“JV”) owned 49% by QEWC and 51% by QP) and 40% owned by a joint consortium of Marubeni Corp (Japan) and Total Solar International (France).
The project will be completed under the Build, Own, Operate, Transfer model after which the plant will be transferred to Kahramaa following a concession period of 25 years.
In January 2020, Kahramaa entered into a long-term agreement with the SPV to buy electricity from the plant during the 25-year concession period. Kahramaa intends to develop a new power and water plant (Facility E) by 2024-2025.
The facility is expected to have 2,600 MW power capacity and 100 MIGD water capacity and will be located in Ras Abu Fontas. QEWC will own 55% share in the project. Further details of the project are expected to be finalized in the Second half of 2021. QEWC, along with its JVs, has a total capacity of 10,590 MW of electricity and 543 MIGD of water.
In addition, its foreign investment arm, Nebras Power, which is 60%, owned by QEWC holds more than 2,000 MW of electricity capacity through a mixture of natural gas, coal, and solar power outside Qatar, on equity-adjusted basis.
