Hello, everyone, and welcome to the Qatar Electricity and Water conference call. Please note that this call is being recorded. After the presentation, there will be a question-and-answer session. If you would like to ask a question during that time, please press star followed by one on your telephone keypad. Thank you. I would now like to hand the call over to Bobby Sarkar, the QNB moderator. You may now go ahead, please.
Okay. Thank you, Ellie. Hi, this is Bobby Sarkar, Head of Research at QNB Financial Services. I wanted to welcome everyone to Qatar Electricity and Water Company 's second quarter and first half 2025 results conference call. On this call, we have Shahzad Gill, who is the Chief Finance and Planning Officer, and Dan Sabitov, who is the Corporate Planning, Performance, and IR Manager. We will conduct this conference with the management first reviewing the company's results, followed by a Q&A. Please note that we will only accept questions in an audio format for this webinar. I would now turn the call over to Shahzad. Shahzad, please go ahead.
Yeah. Thank you very much, Bobby. Hello, everyone. Good afternoon. I welcome you to Qatar Electricity and Water Company 's half year 2025 financial results presentation. We shall start with the headline, then we will get into the details, and comparisons with prior year. This time, we have made some improvements to the presentation to make it easier for you to analyze. We will keep making improvements in the coming quarters as well. Let us start with slide number four, please. Revenue for the half year 2025 is QAR 1.445 billion, which is 2% increase compared to the same period last year. EBITDA is QAR 972 million, which is slightly lower than last year. Net profit attributable to the equity holders is QAR 18 million lower, around 2.6% from last year. We will get into the details later.
QEWC group's gross power capacity at the moment is 20 GW, out of which 4.2 GW is renewables capacity. Gross capacity under construction is 6.1 GW. In net ownership adjusted terms, we have 8.5 GW operational, out of which 1 GW is renewables capacity and 2.9 GW under construction. Gross water capacity is 541 MIGD. Net terms is 392 MIGD. Net under construction water capacity is 61 MIGD. Next slide, please. Here on this slide, I will not go into too much detail, but this slide lists out investment highlights. The fundamentals are still strong for the company. Market share in power and water remains high within Qatar. Internationally, we have a well-diversified portfolio of renewable and thermal assets across 10 countries.
We have long-term off-take contracts for our investments and long-term fuel supply agreements in place. Next slide, please. We have changed the format a little bit on this slide. I will take you through the changes. The left bar in each case is total of sent out water, power, or availability. That is at the group level. This bar is what we have always reported in the past. We have now added some more breakups for better context. Lighter blue middle bar represents assets that are fully consolidated. Hence, you would see the impact on revenue as well as on cost of sales. Lighter blue bars on the right represent investments that are equity accounted, thus impacting share of results lying in the income statement, flowing to the net income. Now to the operational performance in H1 2025.
We have sent out power, which is stable compared to last year figures, while sent out water is slightly lower compared to last year. Power availability is 2.1% higher, while water availability is 0.7% lower. Changes in plant availability are mainly due to plant outages. Next slide, please. Here, a snapshot of key highlights, key financial highlights for 2025 revenue of QAR 1.445 billion, as I mentioned earlier, higher than last year. EBITDA for the period is slightly lower. Net income attributable to equity holders for the period is QAR 662 million. This is around 2.5% lower than last year. Now I will hand it over to Dan to go through the variance analysis in detail.
Thank you, Shahzad, and good afternoon, everyone. We are on slide eight. Revenue was already explained by Shahzad. Gross profit amounted to QAR 452 million in the first half of 2025, comparing to QAR 459 million for the same period of previous year. The variance is mainly due to higher fuel costs and O&M expenses. EBITDA was QAR 972 million for the first half of the year, whereas EBITDA for the first half of the previous year was QAR 1,009 million. The decrease largely explained by two one-off items. First one is income recognized last year from one-time consideration from one of the international investors following sale of their stake. Second one is lower final dividends received from available for sale investments in this year due to interim dividends received in 2024. Turning to slide nine.
Share of profit from our joint ventures and associates increased by 16% in comparison to the results for the same period of last year. Increase is coming mostly from construction and finance income from Surkhandarya plant in Uzbekistan following service concession accounting treatment . Interest and other income decreased from QAR 279 million to QAR 185 million in the first half of 2025. Decrease is driven by one-off items previously explained, coupled with lower interest on deposits. Net profit was QAR 662 million compared to QAR 680 million reported last year. The decrease reflects impact from one-off items and other drivers, as explained before, along with several tax impacts, including Pillar II and deferred tax adjustments. A high-level comparison of financial results for the second quarter is presented on slide 10. I will cover quarter results in more details on the next two slides. Turning to slide 11.
Both revenue and gross profit for the second quarter of 2025 are higher compared to the previous year figures. This was primarily driven by increased sent out power and water, coupled with high availability at one of our stations. EBITDA is in line with 2024 results. High gross profit and share of profit from investees was offset by a decrease in other income, which we will cover shortly. Now turning to slide 12. Decrease in share of profit from JVs and associates mainly driven by income on construction and finance income from Surkhandarya plant as we explained. Lower other income is largely due to income recognized last year from one-time consideration received from one international investment, as previously explained as well. Net profit for the second quarter is 4% higher compared to second quarter of 2024. Increase driven by higher gross profit, higher share of profit from investees, and lower finance cost.
Partially offset by one-off decrease in other income and several tax impacts, including Pillar II and deferred tax adjustments. Now moving to financial position on slide 13. Total assets of the company stand at QAR 23.4 billion, with nearly a 3% increase comparing to previous year-end, which mainly gives drawdown from the corporate credit facility. 7% increase in cash and cash equivalent is largely driven by cash generated from operations over the six months and the debt drawdown, partially offset by payment of final dividend for 2024 and capital expenditures on Facility E and Peaker unit. Increase in value available for sale investments driven by the change in the market prices. Turning to slide 14. Total equity of the company increased by 1% and amounted to QAR 15.7 billion.
Increase largely driven by net profit generated for the first half of the year, partially offset by payment of final 2024 dividends in Q1 2025. Both total debt and net debt increased versus end of 2024 due to debt drawdown, as previously explained. With that, we will open up for questions. Over to you, Ellie.
We are now opening the floor for audio question- and- answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. That is star followed by one on your telephone keypad. We will pause for a brief moment to wait for the questions to come in. Again, if you would like to ask a question, please press star followed by one on your telephone keypad. That is star followed by one on your telephone keypad. There are no pending questions on the conference line. I will now hand over to Bobby for final remarks.
Ellie, guys, if we can wait for a couple of questions, I can start with asking a question or two of my own. Could you give us a sense of your income from your joint ventures and associates? That has been pretty variable, volatile. The quarterly basis, it is roughly QAR 211 million for this quarter. Where do you see that, if you can, on a run rate basis, and what do you think that is going to be going forward, let us say for this year? Thank you so much.
I would think, I think if we take the average over last year and this year, yes, they were volatile, but over the years, it will even out moving.
I am sorry, could you repeat that? That was unclear.
Yeah. I think taking average between the quarters for the last year and this year, will give a good estimate.
Okay. All right. Okay. Thank you. Ellie, do we have any questions from the outside line?
Yes. We do have a question from Zohaib Pervez of Al Rayan. Your line is now open.
Thank you, gentlemen, for the presentation. Could you give us an amount as to how much is the one-time consideration? How much is the one-time consideration that is included in this miscellaneous income? My other question is on the dividends. We saw a slight decline in the dividends, and this, I presume, is from lower profitability. Should we assume that the payout ratio, which has remained stable, is what QEWC looks at while paying out dividends? Should we think that the payout ratio should remain stable, going forward? Or for historical purposes.
Yeah, absolutely. Thank you very much for your question. On the first question, we would prefer not to disclose exact amounts. But I can tell you it is a significant amount. On the second one, yes, you can expect a similar payout ratio going forward. This year has been full of growth investments, and we had cash requirements to fund those investments, but we still maintain or hope to maintain, even to the end of the year, the payout ratio.
Sounds good. Thank you. A couple of more questions.
Yeah.
Your debt levels have increased from last year and from the start of this year. Your interest cost has remained stable. In fact, it is lower, much lower. Is it because you have renegotiated your contracts or it is because the debt was taken at the end of the quarter and probably, you will see more interest costs coming in the next quarters?
Yeah, indeed, our finance cost decreased due to debt amortization of our project finance f rom year to year, they will decrease gradually. Also this quarter, we do see impact of, let us say, other expense, which is lowering of the other gains, which are lowering our finance costs. There is some impact of FX in our finance costs.
Oh, okay. You are saying that the lower finance cost is because of lower FX?
Partly, yes. Partly, yeah. We expect it to reverse in the years to go.
You expect the FX losses to go higher?
No. There has been an FX gain that is offsetting the interest cost. Finance cost. Going forward, this is what our assumption is, that this gain will be nullified. However, also on the question of debt, yes, we did raise some debt in second quarter, and that impact of the financing cost is not fully annualized yet, of course, for that debt.
Sounds good. Thank you.
Next question comes from the line of Hussam Elmoatassem of Ashmore. Your line is now open.
Hi. Good afternoon, everyone. Just a quick question from me, just regarding your CapEx plans. In Q1, you mentioned that over the next three years you expect elevated CapEx levels. Can you give any more color in terms of timing and quantum on that?
Yes, sure. In terms of spending so far, for the Peaker unit, so we have two big projects in Qatar Facility E and Peaker. We spent so far on the Peaker, QAR 180 million this year. Overall, the project cost is QAR 1.6 billion-QAR 1.7 billion. And we expect most of the spending to be in 2025 and 2026, as we expect the target COD in early 2027. That is for the Peaker project. For the Facility E, there is a different treatment. It is equity accounted in Facility E, so you will not see the capital expenditures in our financials, only you will see equity requirements. COD equity requirement, so far we have spent on Facility E around QAR 500 million .
Thank you very much.
Don't have any pending questions. I'd now like to hand the call back to Bobby for final remarks.
Okay. Thank you. If we don't have any further questions, we can end the call for today. I want to thank Shahzad and Dan for taking the time to go over presentation and answer our questions, and we will again pick this up next quarter. Thanks, everyone.
Thank you all for joining.
Thank you.
Thank you for attending today's call. You may now disconnect. Goodbye.