Riyadh, The Saudi Electricity Company (SEC) continued its strong financial performance in the first half and second quarter of 2024, according to an SEC press release issued today. Revenues climbed 15.5% year-over-year to SAR38.2 billion for H1 2024, while net profit surged 16.6% to SAR5.2 billion. In Q2 2024, the positive trend persisted with a 13.5% revenue increase to SAR22.4 billion and an 8.2% rise in net profit to SAR4.3 billion compared to the same period in 2023.
The release said that SEC’s improved financial performance in H1 and Q2 2024 was driven by increased regulatory returns due to higher regulated weighted average cost of capital and a growing regulated asset base, coupled with rising electricity demand. Additionally, lower finance costs, reduced provisions for receivables, and higher other income contributed to the positive results. While operating and maintenance costs increased due to business expansion and higher loads, improved resource management partially offset this. Excluding costs of
ongoing construction contracts for clients, which are newly recognized in the current year, overall operating efficiency increased.
To support future growth and enhance service quality, SEC invested SAR25.1 billion in capital projects during H1 2024 (including SAR14.5 billion in Q2 2024), a 62.5% increase year-over-year. The company also secured nearly SAR18.5 billion in financing since the beginning of 2024.
In May 2024, Fitch Ratings elevated SEC’s credit rating from A to A+ with a stable outlook, acknowledging the company’s strengthened financial and strategic standing. This upgrade aligns SEC’s creditworthiness with the Kingdom’s sovereign rating as assessed by all major global credit rating agencies: Fitch (A+, Stable), Moody’s (A1, Positive), and Standard and Poor’s (A, Stable).
SEC CEO Eng. Khaled Al-Gnoon said: “The positive financial and operating performance during the first half of 2024 reflects the company’s continued progress towards achieving financial sustainability. The company has grown it
s business and operating asset base and has succeeded in improving resource management efficiency while effectively controlling operating expenses.”
Al-Gnoon added: “SEC is successfully implementing its growth plans by making significant investments to support the network expansion and development, diversify the energy mix, and meet the accelerating demand for electricity. The company is also making positive strides in enhancing its technical and operational capabilities. in alignment with the Kingdom’s Vision 2030 aiming to ensure energy supply security, efficiency, quality, and reliability of electricity services while elevating sustainability profile within the company and the sector, aligning with the national sustainable development goals.”
Demand for electricity surged during the first half of the year, said the release, with peak load climbing 9.5% to 72.9 GW and overall consumption rising 6.1% to 146 TWh compared to the same period last year. The company welcomed over 165,000 new customers.
To meet
this increased demand, especially the unprecedented peak loads during Hajj in Makkah, Madinah, and the holy sites, the company maximized resource allocation to ensure optimal pilgrim comfort.
Grid infrastructure was fortified through expanded generation capacity, new overhead and underground lines, and strategic interconnection projects. Notably, the central and southern regions were linked via an 830-kilometer line passing through Al-Kharj, Al-Aflaj, Wadi Al-Dawasir, and Bisha. Additionally, a 660-kilometer interconnection between Arar and Rafha was completed, and a 291 MW generation unit was added to the Fourteenth Generation Station.
Source: Saudi Press Agency