Hello everyone, and welcome to the ACWA Power financial results conference call for this three-month period ended March 31st, 2026. My name is Carla, and I will be your moderator today. If you wish to ask a question during the webinar, please use the raise hand button if you have joined us on Zoom. Alternatively, you can use the Q&A chat box to submit your written question. If you have joined us on the phone lines, please press star followed by one on your telephone keypad. Kindly note that this call is not a media call, so we will not be taking questions from members of the press. I will now hand you over to Ozgur Serin, Head of Investor Relations, to begin. Please go ahead when you're ready.
Thank you very much, Carla. Good morning, good afternoon, good evening, everyone, depending on where you are joining this call today. Thank you for joining ACWA Power's first quarterly earnings call for the year 2026. As usual, we are hosting the call from our headquarters in Riyadh, in Saudi Arabia. Together with me, I have Dr. Samir Serhan, ACWA Power's CEO, and as well as I have Abdulhameed Al Muhaidib, who is our CFO. For those of you who may not know me, my name is Ozgur Serin. I am the Head of Investor Relations and Corporate Strategy at ACWA Power. In less than a minute, we will share with you our presentation together with the prepared remarks, and following that, we will also open the call to your questions at the end of the prepared remarks.
All materials in association with the results of ACWA Power for the first quarter of 2026 are already on our website, company's website, as well as Tadawul's website. One last note, as you all know, during the call we are going to be using forward-looking statements, and for those we have a disclaimer in all the materials that we are sharing with you today. Without further ado, let me pass the words to Dr. Samir. Dr. Samir?
Thanks, Ozgur. Good afternoon and thank you for joining us today. I will begin with a brief update on the business, including our operational performance, portfolio resilience, growth trajectory, and outlook for the remainder of the year. Let me start by saying that ACWA Power is entering a new phase of maturity. ACWA Power has built a significant scale across power, water, and renewable energy. What we are focused on now is ensuring that the growth continues with a greater operational discipline, stronger execution, and consistent financial resilience. From a business development perspective, the first quarter of the year included several important milestones. We're proud that we have entered Kuwait through our first greenfield project, called Az-Zour North, phase 2 and 3. It's IWPP, which represent close to 3 GW of power capacity and around 600,000 m³/ day of water desalination capacity.
We also achieved SAR 1 billion in financial- closed activity during the quarter and reached two commercial operation dates, adding more than 770 MWh of BESS and 600,000 m³/ day of capacity, water capacity to our portfolio. Operationally, the business continued to perform strongly. Availability across renewables and water remains solid, while our legacy in concentrated solar and combined cycle force outage issues continue to improve significantly. Our force outages for these assets are now down by 50% over the last three years, reflecting the focus we have placed on operational excellence. Safety performance also remained strong. During the quarter, we delivered 38.5 million hours with an LTI rate of 0.01. We also continued to make progress on ESG performance and disclosure. During the quarter, MSCI upgraded ACWA from BB B to A.
From a financial and operational perspective, the first quarter demonstrated the resilience of our portfolio despite the elevated geopolitical disruption in the region. We have seen no material or adverse effect operationally or financially on our business today as a result of that geopolitical situation. That said, while underlying the fundamentals of the company remain robust, we continue to take a measured and reasonably cautious view on the remainder of the year. Given the geopolitical developments in the region, I would like to take a couple of minutes to deep dive into how are we managing the situation across the business. From a safety and crisis management standpoint view, we activated a 24/7 command center early in the escalation period. While the command center is currently not active, we continue to closely monitor developments and maintain enhanced safety and security measures across our portfolio.
Our priority throughout has remained very clear. Ensuring the safety of our people while maintaining operational continuity across our fleet, providing products to our customers. From a business development point of view, we have seen no systematic delays in our bid submission pipeline or adverse impact on the financial close of our projects. Operationally and financially, our portfolio remains resilient. Our contractual framework continued to prove strong protection for us. From a risk management standpoint, the primary areas we continue to monitor are the potential impacts of prolonged disruption of the Strait of Hormuz, especially in relation to supply chain continuity and insurance market tightening. To mitigate this risk, we have implemented a range of measures, including maritime rerouting strategies, inventory build-ups for critical stock items, and activation of contractual protections where appropriate. Safety continued to be one of the clearest indicators of operational discipline across the organization.
Today, ACWA operates 67 assets while managing 32 assets under construction. As I mentioned earlier, during the quarter, we maintained an LTI rate of 0.01, representing a combined improvement of 50% over the last three years. At the same time, as mentioned also earlier, we delivered 38.5 million hours in the quarter. Another scale that we also want to report, moving forward, which is a leading indicator instead of a lagging indicator like the LTI is usually a lagging indicator, is the Potential Fatality and Permanent Impairment. We have recorded 37 in the quarter, compared to 21 in the same quarter last year. This number is definitely higher. This reflects our stronger detection capability, greater reporting discipline, and a more proactive safety culture across the business. We want to really see where are the weaknesses before really serious issues happen, LTI or fatality.
The strength of our operational platform is also reflected in our availability metrics. During the quarter, water availability remained strong at 99%, while renewable power availability was north of 97%. As mentioned earlier, force outages in these areas are now 50% less than three years ago. This reflects the effectiveness of the operational improvement program we have implemented across the fleet and reinforces our confidence in the long-term quality and reliability of our platform. In the four years since the IPO, we have more than doubled our power capacity to 95 GW and added 53% more desalination capacity, close to 10 million m³/ day. At the same time, assets under management have grown from SAR 67 billion at IPO to SAR 121 billion today.
By 2030, we still commit to a target of 175 GW of power capacity and more than 15 million m³/ day of water capacity and up to 1 million tons per annum of green hydrogen production. Let me give you now a short-term outlook, what we really see in the next 12 to 15 months. Our confidence in delivering the 2030 strategy is supported by a strong, diversified pipeline across our business verticals. Within the immediate pipeline, we currently have close to 3 GW of power, together with 8.7 GWh of BESS (battery energy storage system) and 600,000 m³/ day of desalinated water awarded projects pending contract signing. These are projects that basically were awarded to us, but we're waiting for the contract signing.
We've also submitted projects bids awaiting results, representing more than 1 GW of power and more than 0.25 million m³/ day of desalinated water capacity. Beyond that, the broader bids and deals pipeline remains very substantial, with 91.5 GW of power opportunities that are currently in our pipeline. More than 10 million m³/ day of water opportunities also in our pipeline, and a little over 1 million tons per annum of green hydrogen opportunities. Again, you can see the very rich pipeline, and that's why we're confident about the 2030 targets. It's worth noting that due to the regional conflict, some bidding timeline may shift as are scheduled by our off-takers.
In parallel, we currently have to close 9 GW of power and slightly north of 2 million m³/ day of water desalination project at financial close that we expect to complete in 2026 in this year. Finally, I would like to close by highlighting the continual progress we are making on ESG performance and disclosure. MSCI, as I mentioned earlier, upgraded ACWA from a—to A rating. S&P Global scores improved above industry average levels, and Sustainalytics reduced our risk profile to medium risk. We're very proud of these improvements. They're really a result of a substantial company-wide effort involving active engagement with rating agencies, enhanced governance and disclosure practices, and reporting of more than 430 data points and 120 disclosure metrics. Really impressive around our company to really achieve this. This is not simply about rating.
It reflects the continued institutional strengthening of the company, and reinforces confidence in ACWA as a credible long-term global infrastructure platform. To close, I would like to reiterate that ACWA is not simply growing. We are scaling with discipline, executing with consistency, and strengthening our position as a long-term infrastructure platform. Thank you, and I would like to pass it on to our CFO, Abdulhameed. Abdulhameed, please.
Thank you. Thank you, Mr. Samir.
Yeah.
Salaam alaikum everyone. Good morning, good afternoon, good evening. For those joining us across the world, I would really first like to thank you for joining us today. I would like to highlight in the first couple of comments about the resilience of our business model. As you can see from the first quarter announcement, the business model remains strong, which is dependent really on the four pillars of our operating model, which is develop, invest, operate, and optimize. I will specifically discuss how some of these components of the business model have weighted higher despite the fact that the development part has been slowing down, in line with what was mentioned earlier by Mr. Samir. This shows the resilience of the business model. We continue to have a very stable operation despite the geopolitical tension that has happened in parts of our portfolio.
Also, I would like to put a little bit of emphasis on the recently completed acquisitions, mainly in the assets in Kuwait, Bahrain, and in the Saudi markets. Operating income has reached around SAR 710 million, almost 16% lower from the same quarter of last year. Net income has also dropped to SAR 345 million, which is around 19% lower than the same quarter of last year. Our business is really about a yearly performance, and we do always see cyclical impact on the quarters. Usually, given the long-term structure of most of our business model, we are really looking at the business usually on a yearly basis.
The first point I would like to share with you on the operating income, if we move to the next slide, I would like to really highlight a trend that we have witnessed for the first quarter in the last five years. As you can see in the first chart, you will see how does the operating income does perform as against the development revenues, which is one part of the four components of our business model. You can see what I tried to highlight in the previous slide, that the unusually strong development parameters we have witnessed in 2025, which is around SAR 526 million, have contributed significantly to quite a unique quarter one in 2025. What I have seen as a positive in 2026 first quarter, that is why the development part or one component of the four components has dropped significantly to around 50%.
The overall operating income has only dropped for less than 16%. This shows the maturity of the recurring cash flows on operating income on this quarter. Looking at the net income, also you can see the trend that we have witnessed in the last five years and taking out the big components related to development. Again, we are quite working in line with the trends that we have seen in terms of average first-quarter performance for the last couple of years. On the operating income, to take a more detailed breakdown from previous years to the current year. Last year, the first quarter we have closed at SAR 870 million. The first major change is related to really the existing and new assets that have been moving from construction into operation.
These assets, including also settlements closing and all of that, has contributed around SAR 150 million. Looking at component two, which is mainly what we have acquired. As you have seen in the announcements, we have closed both the expansion in Shuaibah IWPP, and also the acquisitions of the portfolio in Bahrain and Kuwait, which have contributed for the quarter around SAR 78 million. The component three, you will see that there is a drop of around SAR 300 million. It is mainly related to lower development activities. If you look at the performance from the previous years and the usual expectation, there is always a slowdown in the quarter one, I think when you look at the full year performance, we remain optimistic that the development will catch up as the demand is real and there is a serious progress-based project.
However, the delay is mainly coming from the timing of these either financial closes or the awards, or the timing of the PPAs or the PWAs. The last component is mainly related to other items, including the G&A and other costs. Moving to the net income. The first component that we have added to the SAR 427 million is actually the operating income growth. Sorry, looking at the SAR 427 million, which is last year's quarter one, the first component really is related to lower financial cost that also happened or added to one of the provisions that we took last year in a project that we decided not to pursue in 2025 in Africa. That was around SAR 104 million total. We have around SAR 29 million or close to SAR 30 million of higher financial income together with other finance activities and net impact.
We have the impact for the previous slide, which is around SAR 140 million of lower operating income and around SAR 74 million is mainly impacted of the deferred tax, which is mainly arising from specifically the assets in Morocco where we have the mismatch between the Moroccan dirham and the euro-dollar accounts. This brings us to around SAR 345 million. We will pause here, take some of the questions from the investors. Thank you very much.
Thank you. We will now begin the question-and-answer session. If you would like to ask a question and you have joined us here on Zoom, please press the raise hand icon on your screen. Alternatively, you can submit a text question by using the Q&A chat box. If you have joined us on the phone lines, please press star followed by 1 on your telephone keypad. Our first question is a audio question from Zoom. The question comes from Prateek Bhatnagar. Please state your company name and proceed with your question.
Thanks for taking my question. I have two. The first one is the revenues you have recognized from the sale of shared facilities in this quarter. Could you give some color? What is that and is it likely to be repeated? That is number one. Number two is that two of your Saudi plants faced a limitation on power dispatch. Could you let us know the current status?
Sorry, can you repeat the second question again?
Two of your plants faced a limitation on power dispatch.
Yeah.
The current status for that.
Yeah
While you have negotiations.
Sure. Can I go ahead? Yeah. For the second question on the curtailment, we have announced really the two that has been imposed to curtailment and any further developments when it comes to bringing them back to operation or any major items. We will definitely announce it also on the stock exchange. So far, we are progressing in terms of discussion, as we mentioned in the announcement when it comes to third-party assessment. There is no major development since we announced. We will have to wait until further development comes, then definitely we will include it in the exchange. As we said today, it's exactly the same way we left it on the announcements in the exchange.
For the revenue of the shared services, this is usually a, I would say, a specific exercise that we have witnessed in specific markets in Central Asia, not in the Saudi market, where I just gonna explain to you what's happening there, then you can reflect on how frequent it will be in the future. Usually, if you take the example of Saudi, basically we are building the generation side with where the government are building the transmission distribution and the substation linking up to our plants. Whereas, in other locations, we have the transmission and big part of the off-taker substation into our scope of execution. During the construction period, this is part of the project cost. At COD, we hand over this asset back into the off-taker.
There is a kind of a payment, either it's less than 10 years or more, that is being added up. How frequent will this be is how frequent this kind of scope being repeated into our portfolio. We have seen couple of actually projects follow the same standard. You will see a bit more of the same exercise happening in these assets in Central Asia. How much it will be repeated or changed or be repeated in other markets? We're still to see that.
I think one thing to add about the curtailment, if you allow me. I think we were instructed recently by the off-taker, basically, actually, to reduce the curtailment percentage to a lower percentage. We're making more power out of some of these units.
Okay. All right. Thanks a lot. Just on the sale of shared facilities, what is the margin profile of that sale? Could you let us know? Is that a capital gain which you generate on this? How does it work in terms of profitability?
We don't typically disclose the margins there when it comes to, basically, transfer of assets. These are, as I mentioned, it's like assets being transferred then the same profile. You are amortizing it over the years. Depending on how you treat these assets, sometimes you can book it upfront and then you get the payments in amortization. Sometimes depending also on the treatment of these assets, it could be payments and amortization, if the contract is different, to be around the year. There is no margin on top of it. It's basically the same asset transfer that you are basically doing. It's zero. For the assets that we have done so far, in the future, it depends really on these assets.
Thanks a lot.
Thank you. The next question comes from Ricardo Rezende. Please state your company name and proceed with your question.
Hello. It's Ricardo Rezende from Morgan Stanley. Thanks for taking my question. If I may, the first question is on your updated strategy. When you're talking a lot about growth discipline, does that mean that it could see some changes as well on your geographical footprint and might emphasize some specific geographies compared to what you had mentioned in the past? Just, second question, you've shown the slides, potential new projects and in the pipeline for deals and tenders. Could you also please comment upon potential farm-downs and potential stake sales on current projects that you have? Thank you.
I mean, I can respond to the first question. Basically, as we highlighted to you before, that we really have a very rich pipeline of opportunities, basically, we're pursuing around the world. Really, we're fortunate in this regard because that really gave us the choice now, I mean, to be more selective. We're definitely evaluating the risk profile for these different opportunities and the returns. Based on that, we can really then pick one that's really going to add more value to us and to our shareholders. Yeah. Specifically, to the second question as well, it's not part of slide 10 that we presented because farm-downs or acquisitions really is not part of the deals pipeline. Maybe I will talk about the farm-down first.
When it comes to the portfolio, you will see a couple of assets that we are having a bigger share than what we usually typically own between 10%-40%. Some assets that we are still at a level of 70%-80%. These are all assets that are coming up with potential divestments, or I would say partial divestment to them. We have actually bundled a couple of these projects into our portfolio and we are actively actually looking for a potential divestment for one of these portfolios. There is another active progress on one or two other transactions. Divestment remain part of the bigger picture, one of the four pillars, which is the optimized part. You should expect the divestment to continue contributing to our bottom line on this front.
When it comes to acquisitions, I think today we have demonstrated that acquisitions come with a strong detailed cash flows almost as valuable for ACWA Power. Four assets that have started contributing for quarter one results. We are also looking at multiple transactions at the same time. We believe the market today is actually giving good opportunities on these acquisitions that potentially could be part of our, I would say, deals pipeline, but that is our pipeline. Finally, some of these markets that we are looking at now in the Southeast Asia also give a good opportunity for acquisitions that we are actively looking at that as well.
Okay. Thank you very much.
Thank you. The next question comes from Anna Antonova. Please state your company name and proceed with your question.
Yes. Good afternoon, gentlemen. Thank you for the presentation. Anna Antonova from JPMorgan. One question from our side. Can you please comment what is the status of the NEOM Green Hydrogen project? What's the current completion rate and do you still expect it to be commissioned in the end of this year? Thank you.
I mean, we're currently around 90% on the project. As expected, basically, we will be producing product next year. I mean, we're very, very proud of this project. Many people were questioning how real is this project. It is very real. We would love to have you sometime, I mean, to go visit the job site and see how impressive of a facility it is. It's going to be making around 1.2 million tons of green ammonia, basically next year. Thank you.
Thank you. Just as a reminder to all of the attendees that if you'd like to ask a question, you can use the raise hand button if you have joined us here on Zoom. You can also submit your written question by using the Q&A chat box, if you have joined us on the phone lines, it's star one on your telephone keypad. Our next question comes from Ildar Khaziev. Please state your company name and proceed with your question.
Yes. Hi. This is Ildar Khaziev from HSBC. I have a question about the latest PIF round of projects, which I think was launched sometime in July 2025, I think. I've seen that this round was in the bid evaluation stage, seems like it was delayed. Can you tell us what the status of that tender? Is it coming up soon, this year, perhaps? Separately, another question is about the impact of the regional disruptions. Are you experiencing or might experience, you think, cost inflation because of this in your current projects? Do you think these events could actually potentially lead to more business for you in terms of reconstruction projects and stuff like that? Thank you.
Thank you. For the renewables related to Rounds 5 and Round 6, as you highlighted in the second part of your question, is actually already at financial close, and they are in the progress of construction. These projects are in the execution phase. Definitely, there is now a foreseen impact when it comes to completion, potential increase in the cost of the materials and shipping due to the geopolitical tension. Having said that, the structural protection that we usually have when we secure this development is that there is a lump sum EPC turnkey solution that usually protects basically the project company from any escalation on the construction and execution risk, and it is passed through to the EPC contractor.
Having said that, of course, we're going to work on the spirit of partnership between the project company and the EPC contractor to try and find solution on this potential cost increase. Some of this could be increased as a offset the risk of force majeure structure that offset the risk event, and some of it could be basically maintained within the EPC cost impact group. These are as beginning of the year, they were extremely doing well ahead of schedule. Today, they have faced some of the challenges that you have just witnessed. For the first part, I assume that you are referring to the round 7 and round 8, which is now we have seen some delays on the development part there.
We don't have exactly dates to share in terms of execution, but we suspect there is at least two to three months of delay on delivering these projects at development stage. Then from that stage, we will have also to take our time also to achieve the financial close and start the construction. Status of major milestone will be also shared on the exchange whenever we sign the PPA or achieve the financial close for these projects.
Thank you very much for the comments. May I also ask about that news about the curtailment of the power of take at some of the power plants. Can you tell us what's physically been happening there? Does it often happen in this kind of projects, and why it happens, and what are the ways, what are the things you can do to sort of to address the issue? Thank you.
ACWA Power is operating in more than 15 countries today. We have, when it comes to renewable experience, if you look at it from the east to the west, we are operating solar projects in China, in Indonesia, in Uzbekistan, in Vietnam in the past, in Saudi, UAE, Oman, Morocco, Egypt, and South Africa. We have not ever witnessed a curtailment discussion that takes more than one or two days. This is definitely a unique experience that we are witnessing now when it comes to the long curtailment that we have seen now in this process. But in reality, it means that these assets are not producing energy despite their being ready and stand by. The curtailment is limited to a certain percentage, as also mentioned by Dr. Samir.
What is produced is being produced and being fully paid on time, but whatever is curtailed is what is being disputed today. We are working really extensively with the stakeholders, including the principal buyer, the distribution company, and the ecosystem of the ministry to make sure that we get into a conclusion as soon as possible so we can announce it in the market and then get these assets into operation.
Thanks very much.
Thank you.
Thank you. Our next question is a text question from Mohamed Farah with EPIS. Given that the original Shuaibah IWPP has been operational for many years and recent developments at the site have focused more on desalination, can you clarify whether there are any new power generation project plans at Shuaibah? If so, when they are expected to reach financial close or construction start, or whether Shuaibah is no longer part of your forward power pipeline?
Okay. Maybe let's make sure that we get the question right. If we are assuming in this answer that the reference is to Shuaibah, that's okay, because there is a reference to decommissioning. If the reference is to Shuaibah, we are decommissioning the asset of Shuaibah, which is the IWPP, and there is a phasing of the decommissioning for the next five years, based on which we have replaced it with a plant, which is the IWP, as you highlighted. That is purely water project, separate in contract, separate in financing, separate in everything to the decommissioning asset. When it comes to what is the expectation on that region, if there is more water projects coming up or more water power projects, I think this is a question not really to ACWA.
It's more to the regulator who is usually designing the full mapping and supply demand for the different regions, they tender these projects on time. There are multiple projects. Some of them actually is power. For example, we have Shuaibah PV projects, and some of them specifically water, like the Shuaibah IWP. I would not really link the decommissioning with specific scope for ACWA Power except for the Shuaibah IWPP, which we announced at that time, and now is basically on operation.
Thank you. Just as a final reminder to all of the participants that if you would like to ask a question, you can use the raise hand button. If you have joined us on Zoom, you can also submit a written question by using the Q&A chat box. If you have joined us on the phone lines, it's star one on your telephone keypad. Our next written question is: Are you experiencing any supply-related issues with respect to ongoing logistic disruption?
Yes, definitely for the construction projects because of the restrictions in shipping. As I mentioned earlier, we had to re-route some of the shipments to other ports, basically, to be able to run on so not to impact our ongoing projects. There is definitely been an impact, but we've been really managing it with our EPC contractors and our off-takers. For the stock for our plants, because we need some material, we have been really overbuying just to make sure that we have enough material there just in case, if this thing will go longer.
Thank you. We have a follow-up question from Prateek. Please go ahead.
Thanks again for taking my question. My question is on Uzbekistan. You have a growing presence there, the government recently gave an update about implementing a RAB methodology. Does it impact your profitability and assets there? Thank you.
I'm sorry, what did the government implement? If you can say that again.
They are planning to implement a RAB methodology, RAB-based tariff framework from September 2026 onwards for their utility assets.
Did they specifically, maybe, actually, both Mr. Samir and I.
We were all basically, the chairman, Abdulhameed, and myself, who were in Uzbekistan for the whole week. Again, we visited our sites, we met with our people, we met with the government, who is the off-taker. I think we're doing very well there. Really, and actually, we're looking for more plots in Uzbekistan. Yeah.
Maybe I just want to highlight a few things in Uzbekistan market compared to Saudi. If you look at the structuring of this financing, they are actually heavily or fully being financed by development banks compared to the commercial banks that usually complete these IPPs or finance these IPPs in Saudi. The likes of ADB, IFC, AIIB, and also ADB, that usually take big parts of our financing of these projects. When we design these projects, even at the time of the financing, they come with a huge ES requirement, which is environment and social impact. That is actually much higher when it comes to the standards than what we have seen being required in other parts of the world.
We have multiple projects under construction there. I'm glad to share with you that we have actually, using this opportunity, we have actually improved a lot the ACWA itself as a corporate and as a project, which helped us actually improve our environment and social scoring. This was definitely one of the side needs to cut the rating of the ESG as well. We have not witnessed any negative impact because of that. Actually, it is always a positive impact because it keeps opening our eyes to new challenges, new things that we have not really looked at it in the past. Definitely, it's a reason also for us to sometimes delay our financial close because we really need to understand the consequences, the responsibilities to do it before we achieve the financial close for this project. This was embedded in the past.
We will look into what you have highlighted to see if there is additional impact. If there is something, definitely, we'll share it in our follow-up question or as a follow-up to you. I think you have already direct engagement with our team, given that you have recently started covering our stock as well.
Thanks for that.
Thank you. We have a follow-up from Ildar. Please go ahead.
Thank you again. I have a question about outlook for the CCGT projects in the Middle East. I think there was a big wave of those projects over the past two years. Now the pipeline seems to be fairly light. Although, I think in Iraq, potentially, I think they have a big gas program. Would you expect that activity to improve going forward? Would you be interested actually to look at Iraq if anything happening there on this front? Thank you.
When we presented the pipeline, we actually added all the technologies together. We talk about renewables, CCGTs, and other technologies as well. Looking specifically at the CCGTs, already the announced Vision 2030 targets for Saudi includes 50% renewables by 2030 and 50%, I would say, high efficient gas portfolio. We have seen a very strong CCGT pipeline in the past few years, including the next three programs of four assets that we announced, Rabigh 1 . We actually signed just after the quarter, a big PPA for the CCGT, which is part of the Rabigh 2 expansion that was announced in April. There is an active, visible pipeline that we have seen in the CCGT, including some of the projects that we are looking at is actually in South Africa and Jordan.
You highlighted UAE, definitely we have a strong presence there. Saudi Arabia, for sure, along with Southeast Asia, mainly Malaysia, where we are seeing also an expected CCGT pipeline. Overall, the CCGT pipeline, I've not seen a slowdown on a yearly basis. Maybe on a short-term quarterly basis, you can witness a slowdown, but we are expecting that we will remain active in the CCGT as well.
I'm not sure if I heard also you mentioned specifically in the question about Iraq.
Iraq, yeah.
Definitely, yes, we are pursuing combined cycle projects also in Iraq.
I heard it's Iraq.
Yeah. We have mentioned Iraq.
Interesting. Thank you so much.
Thank you.
Thank you. The next question is a text question. As I understand, these contracts have inbuilt clauses for delayed implementation. Are you going to invoke some kind of force majeure?
Where does the question come from?
I believe it's a follow-up from, "Are you experiencing any supply-related issues?" It is from the same questioner.
It is typical when you have what's happening now with the regional conflict, that you will have the EPC contractors file force majeure claims. Also, the project companies file force majeure with the off-takers. This is part of the ongoing business. Definitely we will be working with our off-takers and our EPC contractor to try to resolve these things.
These things take time. If you look at the way that we have a very recent experience less than five years ago about COVID-19.
COVID. Yeah.
You had a serious delay in multiple EPC contractors. It took us almost three and a half years to close all the COVID-19 EPC delays, depending on the project, because it's a continuous disputed resolution between multiple stakeholders, between the off-taker, the EPC contractor, and the project companies. It takes time. Depending on which project, you will have a different basically impact. What we have seen so far is nothing related to the magnitude that we have seen during COVID. It is a sizable impact, but not even close to what we have seen at the time of the COVID.
Thank you. As we have no follow-up questions in the queue, I will hand back over to Mr. Ozgur for any final comments.
Thank you very much, Carla. Thank you everyone for your patience with us and listening to us and all the questions that you have asked. Any additional questions, you know how you are going to reach us, please do not hesitate, and we are going to get back to you with the answers in the standard response time. Thank you very much. Have a good day or evening, wherever you are again.
Thank you.
Thanks.
Thank you.
This concludes today's call. You may now disconnect. Have a great rest of your day.