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‎Alkhorayef Water ups capital to boost growth, expansions: CEO

July 24, 2023
in Business
‎Alkhorayef Water ups capital to boost growth, expansions: CEO
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Alkhorayef Water executes SAR 6.2 bln projects; capital top-up to boost growth, expansions: CEO

CEO Rami Moussilli

Alkhorayef Water and Power Technologies Co.’s (AWPT) capital increase aims to boost its growth and expansion strategy in the Kingdom, particularly in the water and wastewater sector. The move also reiterates AWPT’s financial solvency by strengthening its capital base, said CEO Rami Moussilli. 

The company’s board of directors recommended, on July 23, increasing capital by 40% from SAR 250 million (25 million shares) to SAR 350 million (35 million shares) via a 1-for-2.5 bonus-share distribution. The capital hike will be financed by capitalization of SAR 100 million from retained earnings.

In an interview with Argaam, Moussilli confirmed that the company is currently executing more than 80 contracts in the water and wastewater sector, at a value of about SAR 6.2 billion, indicating that the value of revenues from projects backlog amounted to SAR 4.5 billion, a growth of 28% compared to the same period a year ago.

In April, the company was awarded a long-term, 15-year contract by the National Water Company to operate and maintain sewage treatment plants in Manfouha, Riyadh. The company will perform design, rehabilitation works, testing and commissioning, full operation and maintenance, and, handover of three sewage treatment plants whose treatment capacity amounts to 700,000 cubic meters per day, according to the top official.

He said that the Kingdom is witnessing growth in the water and wastewater sector, in line with the National Water Strategy, which includes a number of programs, such as increasing the coverage of water and sewage services, reducing the percentage of losses in networks, and reusing treated wastewater.

AWPT is targeting a large number of contracts for future projects, which will contribute to the realization of this strategy with various parties, such as the National Water Co., the Water Transportation and Technologies Co., and the Saudi Water Partnerships Co. through construction contracts or long-term privatization contracts. The company is one of the most qualified local players to execute these projects given its long experience and leading role in the sector, said Moussilli.

Moreover, the company continues to target periodic contracts for operation and maintenance projects, in which the company owns the largest market share in the Kingdom, as well as long-term operation and maintenance contracts for periods of up to 15 years for NWC’s sewage treatment plants in various regions across the Kingdom, he added.

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Copyright for syndicated content belongs to the linked Source : Argaam EN – https://www.argaam.com/en/article/articledetail/id/1658560

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