ACWA Power Company ($2082)

Hello, everyone, and welcome to the ACWA Financial Results Conference Call for the 3-month period ended March 31, 2026. My name is Carla, and I will be your moderator today. [Operator Instructions] 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's first quarterly earnings call for the year 2026. And as usual, we are hosting the call from our headquarters in Riyadh in Saudi Arabia. Together with me, I have Dr. Samir Serhan, ACWA'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. 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 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 word 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 is entering a new phase of maturity. ACWA 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 gigawatts of power capacity and around 600,000 cubic meter per day of water desalination capacity. We also achieved SAR 1 billion in financially closed activity during the quarter and reached 2 commercial operation dates, adding more than 770 megawatt hours of BESS and 600,000 cubic meter per 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 forced outage issues continue to improve significantly. Our forced outages for these assets are now down by 50% over the last 3 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 continue to make progress on ESG performance and disclosure. During the quarter, MSCI upgraded ACWA from BBB 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 the 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 development 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 stand 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 remained 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 in 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 buildup for critical stock items and activation of contractual protections where appropriate. Safety continued to be one of the clear indicator 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 3 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 is 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 definitely higher. This reflects our stronger detection capability, greater reporting discipline and a more proactive safety culture across the business. So we want to really see what are the weaknesses before really serious issues happens, 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, forced outages in these areas are now 50% less than 3 years ago. This reflects the effectiveness of the operational improvement program we have implemented across the fleet and reinforce our confidence in the long-term quality and reliability of our platform. I'm sorry, in the 4 years since the IPO, we have more than doubled our power capacity to 95 gigawatts and added 53 more desalination capacity, close to 10 million meter cube per day. At the same time, assets under management have grown from $67 billion at IPO to $121 billion today. By 2030, we still commit to a target 175 gigawatts of power capacity and more than 15 million cubic meter per day of water capacity and up to 1 million tonne per annum of green hydrogen production. Let me give you now a short-term outlook, what we really see in the next 12, 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 gigawatts of power together with 8.7 gigawatt hour of battery energy storage system and 600,000 cubic meter per day of desalinated water awarded projects pending contract signing. So these are projects that basically were awarded to us, but we're waiting for the contract signing. We've also submitted the projects, bids awaiting results representing more than 1 gigawatt of power and more than 0.25 million cubic meter per day of desalinated water capacity. Beyond that, the broader bids and deal pipeline remains very substantial with 91.5 gigawatts of power opportunities that's currently in our pipeline, more than 10 million cubic meter per day of water opportunities also in our pipeline and a little over 1 million per annum of green hydrogen opportunities. So 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 time line may shift as are scheduled by our offtakers. In Badeel, we currently have to close 9 gigawatts of power and slightly north of 2 million cubic meter per 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 continued progress we are making on ESG performance and disclosure. MSCI, as I mentioned earlier, upgraded ACWA from 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 in flowing 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 whole company to really achieve this. This is not simply about rating. It reflects the continuous institutional strengthening of the company and reinforce 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. So thank you, and I would like to pass it on to our CFO, Abdulhameed. Abdulhameed, please?

Thank you. Thank you, Dr. Samir. [Foreign Language] 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 moments about the resilience of our business model. So as you can see from the first quarter announcement, the business model remains strong, which is depending really on the 4 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 has weighted higher despite the fact that the development part has been slowing down, in line with what was mentioned earlier by Dr. Samir, and this shows the resilience of the business model. We continue to have a very stable operation despite the geopolitical tension that has happened in part of our portfolio. And also, I would like to put a little bit of emphasis of the recently completed acquisitions, mainly the assets in Kuwait, Bahrain and in the Saudi market. Operating income has reached around SAR 730 million, almost 16% lower for the same quarter of last year. And 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. But usually, given the long-term structure of most of our business model, we are really looking at the bigger picture usually on a yearly basis. The first point I would like to share with you on the operating income. If you move to the next slide, I would like to really highlight a trend that we have witnessed for the first quarter in the last 5 years. As you can see in the first slide, you will see how does the operating income does perform as against the development revenues, which is part of the 4 components of our business model. And 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, it has contributed significantly to quite unique quarter 1 in 2025. What I have seen as a positive in 2026 first quarter that while the development part or component of the 4 components has dropped significantly to around 50%, the overall operating income has only dropped for less than 16%. So this shows the maturity of the recurring cash flow to our operating income on this quarter. Looking at the net income, also, you can see the trend that we have witnessed in the last 5 years and taking out the big components related to the development, again, we are quite working or in line with the trend 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 year to the current year. So 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 has been moving from construction into operation. And these assets, including also settlement closing and all of that has contributed around SAR 150 million. Looking at component #2, which is mainly what we have acquired. As you have seen in the announcement, we have closed both expansion in Shuaibah, IWPP and also the acquisitions of the portfolio in Bahrain and Kuwait, which has contributed for the quarter on around SAR 78 million. The component #3, you will see that there is a drop of around SAR 300 million. It's 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 1. But 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 growth -- serious progress in these projects. However, the delay is mainly coming from the timing of these either financial closures or the awards or the signing of the PPAs or the PWAs. The last component is mainly related to other items, including G&A and other costs. Moving to the net income. So the first component that we have added to the SAR 427 million is actually the operating income growth. And sorry, looking at the SAR 427 million, which is the last year quarter 1, the first component really is related to lower financing costs 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. So that was around SAR 104 million total. Then we have around SAR 29 million or close to SAR 30 million of higher financial income, together with other finance activities and net impact. Then 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 basically accounts. This brings us to around SAR 345 million. We'll pause here. We'll take some of the questions from the investors. So thank you very much.

[Operator Instructions] And our first question is an audio question from Zoom. The question comes from Prateek Bhatnagar. Please state your company name and proceed with your question.

I have 2. So 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? So that's number one. Number two is that 2 of your Saudi plants faced a limitation on power dispatch. Could you -- could you let us know the current status?

So sorry, can you repeat the second question again?

Two of your plants faced a limitation on power dispatch. So the current status about that, how is your negotiation?

Sure. Shall I go ahead, yes. So for the second question on the curtailment, we have announced really the 2 assets that has been imposed to curtailment and any further development 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. And as we mentioned in the announcement when it comes to third-party assessment. There is no major development since we announced. So we will have to wait until the further development comes and then definitely, we will include it in the exchange. So as we stand today, it's exactly the same than where we left it on the announcement in the exchange. For the revenue of the shared services, this is usually is, I would say, a specific exercise that we have witnessed in specific markets in Central Asia, not in the Saudi market, where I just can explain to you what's happening there and then you can reflect on how frequent it will be in the future. So usually, if you take the example in Saudi, basically, we are building the generation side of it where the government are building the transmission distribution and the substation linking out to our plants, whereas in other locations, we add the transmission and big part of the offtaker substation into our scope of execution. So during the construction period, this is part of the project cost. And then at COD, we hand over these assets back into the offtaker. And then there is kind of a payment, either structure in 10 years or more that is being handed over. So how frequent will this be is how frequent this kind of scope being repeated into our portfolio. We have seen a couple of actually projects follow the same standard. So you will see a bit more of the same exercise happening in these assets in Central Asia. How much it will be repeated or change or be repeated in other markets, we still to see that.

I think one thing to add the curtailment, if you allow me, I think we were instructed recently by the offtaker basically actually to reduce the curtailment percentage to a lower percentage. So we're making more power out of some of these units.

All right. 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 usually disclose the margins there when it comes to basically transfer of sales. But these are, as I mentioned, it's like assets being transferred and 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 amortized basis, sometimes depending also on the treatment of these assets, but could be payments and amortization if the contract is different to be around [indiscernible] . But there is no margin on top of it. It's basically the same assets transferred that you are basically doing it. So it's 0 for the assets that we have done so far. In the future, it depends really on these assets.

And the next question comes from Ricardo Rezende. Please state your company name and proceed with your question.

It's Ricardo Rezende from Morgan Stanley. If I may, the first question is on your updated strategy when you're talking a lot about growth discipline. Does that mean that you could see some changes as well on your geographical footprint that might emphasize some specific geographies compared to what you had mentioned in the past? Then just second question, you showed in the slides potential new projects and the pipeline for bids and tenders. Could you also please comment about potential farm-downs and potential stake sales on current projects that you have?

I mean I can respond to the first question, basically. As we highlighted to you before, we really have a very rich pipeline of opportunities, basically we're pursuing around the world. And really, we're fortunate in this regard because that really gives us the choice now, I mean, to be more selective. So we're definitely evaluating the risk profile for these different opportunities and the returns. And based on that, we can really the big one that's really going to be really add more value to us and to our shareholders. So...

Yes. So specifically to the second question, it was not part of Slide 10 that we presented because farm-downs or acquisitions usually is not part of the bids and deals pipeline. So maybe I will talk about the farm-downs 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 30% to 40%. Some assets that we are still at the level of 70% to 80%. So these are all assets that are coming up with potential divestments or I would say, partial divestments into 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. And there is another active progress on 1 or 2 other transactions. So divestments remain part of the bigger picture, one of the 4 pillars, which is the optimized part. And we should expect divestment to continue contributing to our bottom line on this one. When it comes to acquisitions, I think today, we have demonstrated that acquisitions come with a strong recurring cash flow is always a target for ACWA Power and 4 assets that have started contributing for quarter 1 results. And 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 [indiscernible] 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.

And the next question comes from Anna Antonova. Please state your company name and proceed with your question.

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?

I mean we're currently around 90% on the project. And as expected, basically, we will be producing a product next year. I mean we're very, very proud of this project and many people were questioning how real is this project. It is very real. We would love to have you some time, I mean, to go visit the job site and see how impressive of a facility is this. And it's going to be making around 1.2 million tonnes of green ammonia basically next year.

[Operator Instructions] And our next question comes from Ildar Khaziev.

This is Ildar Khaziev from HSBC. I have a question about the latest brief 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 and it seems like it was delayed. Can you tell us what's the status of that tender? Is it coming up soon this year perhaps? And 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? And 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. So for the renewables related to round 5 and round 6, as you highlighted in the second part of your question, is actually already achieved financial close and they are in the progress of construction. These projects are in the execution phase. And 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 protect 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 an offtake risk of force majeure structure that offtake a risk event and some of it could be basically maintained within the EPC cost impact. So 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 second -- the first part, I assume that you're referring to the round 7 and round 8, which is -- now we have seen some delays on the development part there. We have not -- we don't have exactly date to share in terms of execution, but we suspect there is at least 2 to 3 months of delay on delivering these projects at development stage. And then from that stage, we will have also to take our time also to achieve the financial close and start the construction. So status of major milestone will be also shared on the exchange whenever we sign the PPAs or achieve the financial cost for these projects.

May I also ask about the news about the curtailment of the power offtake at some of the power plants. Can you tell us what's physically being happening there? Like does it often happen in those kind of projects and why it happens? And what are the ways you can -- what are the things you can do to sort of to address the issue?

So 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 1 or 2 days. So this is definitely a unique experience that we are witnessing now when it comes to the long curtailment that we have seen now in these 2 assets. But in reality, it means that these assets are not producing energy despite there being ready and standby. The curtailment is limited to a certain percentage, as also mentioned by Dr. Samir. So 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.

And our next question is a text question from [ Mohammaed Farooq with EPIS ]. Given that the original Shuquaiq 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 projects planned at Shuquaiq? And if so, when they are expected to reach financial close or construction start or whether Shuquaiq is no longer part of your forward power pipeline?

Okay. So -- maybe let's make sure that we get that question right. We are assuming in this answer that the reference is to Shuaibah, not Shuquaiq because there is a reference to decommissioning. So if the reference is to Shuaibah, we are decommissioning the assets of Shuaibah, which is the IWPP and there is a phasing of the decommissioning for the next 5 years based on which we have replaced it with a plant, which is the IWP, as you highlighted. So that is purely water projects, separate in contract, separate in financing, separate in everything to the decommissioning assets. When it comes to what is the expectation on that region, if there is more water projects coming up or more water power project, I think this is a question not really to ACWA. It's more to the regulator who is usually designing the full mapping and demand, supply and demand for the different regions, and they tender these projects on time. We are now 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 3 IWP. But I would not really link the decommissioning with specific scope for ACWA Power, except for the Shuaibah IWP, which we announced at that time and now it is basically on operation.

[Operator Instructions] And our next written question is, are you experiencing any supply-related issues with respect to ongoing logistic disruption?

Definitely for the construction projects because of the restrictions in shipping. So as I mentioned earlier, we had to reroute some of the shipments to other ports basically to be able to -- so not to impact our ongoing projects. So there has definitely been an impact, but we've been really managing it with our EPC contractors and our offtakers. And for the stock for our plants because we need some material, we have been really buying -- overbuying just to make sure that we have enough material there just in case if this thing will go longer.

And we have a follow-up question from Prateek. Please go ahead.

Prateek from Jefferies here. My question is on Uzbekistan. You have a growing presence there and the government recently gave an update about implementing a RAB methodology. Does it impact your profitability there, profitability on your assets there?

I'm sorry, what did the government implement, if you can say that again?

So they are planning to implement a RAB methodology, RAB-based tariff framework from September 2026 onwards for the utility assets.

They specifically -- look, maybe actually both. Dr. Samir.

Yes. We were all basically the Chairman, Abdulhameed and myself were in Uzbekistan for the whole week. And again, I mean, we visited our sites. We met with our people. We met with the government who is the offtaker. I think we're doing very well there really -- and actually, we're looking for more growth in Uzbekistan.

Yes. Maybe I just want to highlight a few things in Uzbekistan market compared to Saudi. So 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. So the likes of ADB, IFC, AIIB and also ADB that usually be big part of our financing of these projects. So when we design these projects, even at the time of the financing, it come with a huge E&S 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. And I'm glad to share with you that we are actually using this opportunity, we have actually improved a lot in the ANC itself as a corporate and as a project, which helped us actually improve our environment and social scoring, and this was in one of the slides to look at 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 we keep opening our eye into new challenges, new things that we have not maybe looked at it in the past. And definitely, it's a reason also for us to sometimes delay our financial close because we really need to understand the consequences, the methodologies to do it before we achieve the financial cost for the project. So this was embedded in the past. At least we would look into what you have highlighted to see if there is additional impact. If there is something, definitely we share it in our -- maybe as a follow-up question -- as a follow-up to you. I think you have already a direct engagement with our team given that you have recently started covering our stock as well.

And we have a follow-up from Ildar.

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 2 years. And 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 sort of to improve going forward? Would you be interested actually to look at Iraq if is anything happening there on this front?

So when we presented the pipeline, we actually added all the technologies together. So we've talked about renewables, CCGTs and other technologies as well. Looking specifically at the CCGTs, already the announced vision 2030 target for Saudi includes 50% renewables by 2030 and 50% I would say, high efficient gas portfolio. So we have seen a very strong CCGT pipeline in the past few years, including next leg programs of [indiscernible] that we announced [indiscernible] and basically Rabigh and [indiscernible]. We actually signed just after the quarter, a big PPA for the CCGT, which is Rabigh 2 expansion that was announced in April. And 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 and Saudi Arabia for sure, along with Southeast Asia, mainly Malaysia, where we are seeing also an expected CCGT pipeline. So overall, the CCGT pipeline have 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're going to remain active in the CCGTs as well.

I'm not sure if I heard also you mentioned specifically in the question about Iraq. And definitely, yes, we are pursuing combined cycle of projects also in Iraq.

And I [indiscernible].

Yes. We always mention Iraq.

And the next question is a text question. As I understand, these contracts have inbuilt clauses for delayed implementation. So 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.

I mean it is typical when you have what's happening now with the regional conflict that you would have the EPC contractors file force majeure claims. Also the project companies file the force majeure with the offtakers. So this is part of the ongoing business. And definitely, we will be working with our offtakers and our EPC contractor to try to resolve these things.

And these things takes time. If you look at the way that -- and we have a very good experience less than 5 years ago about COVID-19. Yes, you had a serious delays in multiple EPC contractor. It took us almost 3.5 years to close all the COVID-19 EPC delays depending on the project because these are continuous disputed resolution between multiple stakeholders, between the offtaker, the EPC contractor and the project companies. So it takes time. So depending on these projects, 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. So it is a sizable impact, but not even close to what we have seen at the time of the COVID.

And 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. And 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. So 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.

Thank you.

Thank you. This concludes today's call. You may now disconnect. Have a great rest of your day.