(MENAFN - Gulf Times) Qatar Electricity and Water Company (QEWC) posted a QR1.15bn net profit in 2020, a statement announced Sunday.
Under the chairmanship of HE the Minister of State for Energy Affairs Saad bin Sherida al-Kaabi, the board of directors approved QEWC financial results for 2020.
The board recommended a dividend per share of QR0.63 to be approved at the annual shareholders general assembly on March 8. Total dividend payment will be QR693mn, which is 60% of the company's net profit.
QEWC reported revenue of QR2.58bn in 2020 over QR2.38bn during the same period in 2019. Operating profits amounted to QR782mn last year compared to QR879mn during the same period in 2019.
'This strong performance generated a net profit (attributable to the equity holders of the company) of QR1.15bn (EPS: QR1.05) compared to the QR1.41bn (EPS: QR1.29) during 2019.
'Cash flows from operations remain strong when compared to the same period in the previous year. QEWC recorded operational cash flows of QR1.16bn compared to operational cash flows of QR1.13bn during the same period in the previous year, the statement also said.
QEWC owns and operates seven power and/or water stations in Qatar and has partnered with international companies to own and operate another five power and/or water companies.
Despite the effects of the Covid-19 pandemic globally, QEWC's operations remained stable in 2020. 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 2020.
QEWC projects remain relatively unaffected and are making progress. During 2020, 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, made substantial progress and is nearing the completion of the first phase of the project.
Phase 1 of the project is expected to deliver a capacity of 30 MIGD by end of February 2021, with its second phase to deliver 31.45 MIGD by April 2021.
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 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 2023-2024. 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 is expected to own 55% share in the project. Further details of the project are expected to be finalised in the second quarter of 2021.
QEWC, along with its JVs, has a total capacity of 10,590 MW of electricity and 481.5 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.
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