SAR88.7 billion in total operating revenues was reported by the Saudi Electricity Company (SEC) for 2024, representing an 18% increase from the SAR75.3 billion recorded in the previous year.
According to SPA, the growth was driven by sustained electricity demand, increased power generation, an expanded regulated asset base, and a higher weighted average cost of capital (WACC) return. Revenues from project development and management, including transmission lines and power plant construction for clients, also contributed to the results.
The company reported a net profit of SAR6.9 billion for 2024, down from SAR10.2 billion in the previous year. This decline followed a one-time expense of SAR5.7 billion for the final settlement of disputed amounts regarding electricity tariffs, fuel pricing, handling costs, and fuel quantities.
Adjusted net profit, excluding the non-recurring expense, rose 8.9% to SAR12.1 billion from SAR11.1 billion in 2023. This was supported by a 10% expansion in regulated asset bases to SAR231 billion, lower operating and maintenance costs, and increased equity-accounted earnings from independent power plants.
What caused the decline in Saudi Electricity Company’s 2024 net profit? The net profit decreased to SAR6.9 billion from SAR10.2 billion in the previous year due to a one-time expense of SAR5.7 billion. This cost resulted from the final settlement of long-standing disputed amounts related to electricity tariffs, fuel quantities, pricing, and handling costs.
How did the adjusted net profit of SEC perform in 2024? Excluding a non-recurring expense, the adjusted net profit grew by 8.9%, reaching SAR12.1 billion compared to SAR11.1 billion in 2023. This growth was driven by a 10% expansion in regulated asset bases to SAR231 billion and increased power generation revenues.
What factors contributed to the 18% growth in SEC operating revenues? Operating revenues rose to SAR88.7 billion due to sustained electricity demand, increased power generation, and a higher weighted average cost of capital (WACC) return. Additionally, the company gained revenue from project development and management, including constructing transmission lines and power plants for clients.