Shareholders of Saudi energy firm ACWA Power have given their stamp of approval for the buyback of 2 million shares during an extraordinary general meeting held on June 22. The company plans to utilize these repurchased shares in its employee stock incentive program, as revealed in the disclosure made to the Saudi Stock Exchange. ACWA Power further disclosed that the buyback will be funded from the firm’s own resources. The board of directors has set a target to complete the share repurchase within 12 months from the date of the EGM.
In accordance with the approval, the repurchased shares will be held for a duration of seven years from the date of the EGM until they are allocated to eligible employees. After this period, ACWA Power will adhere to the necessary controls and conditions outlined in the relevant regulatory standards and procedures.
In addition to the buyback decision, the shareholders also gave their nod to the board of directors’ recommendation to distribute an 8.3% cash dividend, equivalent to SR0.83 ($0.22) per share, for the year 2022. This dividend distribution reflects the company’s commitment to providing attractive returns to its shareholders. Going forward, ACWA Power’s board will determine the record and payment dates for interim dividends in 2023 based on the company’s financial position, cash flows, and investment and expansion plans. The board intends to distribute the interim dividends on a semiannual or quarterly basis.
ACWA Power has been actively engaged in expanding its operations and recently secured a significant agreement worth $1.5 billion with the Ministry of Energy of Kazakhstan and Samruk-Kazyna, Kazakhstan’s sovereign wealth fund. The agreement paves the way for the implementation and management of a wind energy and battery storage project, boasting a total capacity of 1 gigawatt. This project underscores ACWA Power’s commitment to renewable energy and its role in fostering sustainable development globally.
The approval of the share buyback and dividend distribution demonstrates the confidence shareholders have in ACWA Power’s long-term growth prospects. These strategic moves not only aim to benefit the company’s employees but also aim to enhance shareholder value by optimizing the capital structure and rewarding investors with attractive dividends.
ACWA Power, a leading player in the energy sector, continues to prioritize innovation and sustainability in its operations. Through its diverse portfolio of power generation projects, the company has established a strong presence in the global energy market. By leveraging its expertise and strategic partnerships, ACWA Power is well-positioned to drive the transition towards clean and efficient energy sources, contributing to a greener and more sustainable future.
In conclusion, ACWA Power’s shareholders have given their resounding support for the buyback of 2 million shares and the distribution of an 8.3% dividend for the year 2022. These decisions reflect the company’s commitment to maximizing shareholder value while also nurturing its workforce. With the recent agreement for a large-scale wind energy and battery storage project in Kazakhstan, ACWA Power is further cementing its position as a global leader in sustainable energy solutions.
