Qatar- QEWC net profit jumps 16% to QR372mn in Q1

(MENAFN- Gulf Times) Qatar Electricity and Water Company (QEWC) posted a first-quarter net profit of QR372mn, up 16% on the same period last year. QEWC recorded revenue of QR601mn in Q1, 2021 compared to QR599mn in the first quarter of last year, the company said after a meeting of its board of directors chaired by HE Saad bin Sherida al-Kaabi, Minister of State for Energy Affairs.
Cash flows from operations remained strong when compared to the same period in the previous year. QEWC recorded operational cash flows of QR297mn in Q1 compared to operational cash flows of QR238mn during the same period in the previous year.
During the Quarter, QEWC's market share in Qatar with regard to the supply of electricity was 68% and desalinated water 73%.
QEWC said it would continue to focus on the renewable energy domain this year through Siraj Energy, and aim expansion into international markets through its joint venture company Nebras Power.
The company was established to develop, own and operate plants to produce electricity and desalinated water to supply them to the state-owned Qatar General Electricity and Water Corporation (Kahramaa).
With an existing market share of capacity in Qatar, 59% and 73% in electricity and water, respectively, it 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 five power and/or water companies.
Despite the impact of the Covid-19 pandemic globally, QEWC said its 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, 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.
The company's projects remain relatively unaffected and are making progress. During Q1, 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 61.45MIGD 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 800MW 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, 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 2024-2025. The facility is expected to have 2,600MW power capacity and 100MIGD 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 finalised in the second half (Q2) of 2021, QEWC said on Wednesday night.
QEWC, along with its JVs, has a total capacity of 10,590MW of electricity and 543MIGD of water.
In addition, its foreign investment arm, Nebras Power, which is 60%, owned by QEWC holds more than 2,000MW of electricity capacity through a mixture of natural gas, coal, and solar power outside Qatar, on equity-adjusted basis.    

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