Saudi Electricity Company, which generates and distributes electricity across Saudi Arabia, recorded a significant increase in profits, reaching SAR 1.86 billion at the end of the first half of 2025, compared to SAR 870 million during the same period last year.
Saudi Electricity
The company's profits witnessed a significant increase, reaching SAR 6.3 billion (before deducting the speculative instrument's dividends) by the end of the first half of 2025, compared to profits of SAR 5.2 billion achieved during the same period in 2024.
The company said the reason for the increase in profits during the current period compared to the same period last year is due to:
Saudi Electricity profits
- Revenues increased for the current period compared to the same period of the previous year as a result of the following:
1) Increase in required revenue recognized during the current quarter as a result of the growth in the regulated asset base of the electrical grid.
2) Increase in electricity production revenues and continued growth in demand.
3) Increase in project development and management revenues related to the construction of stations and transmission lines for the company’s clients.
Despite the fact that:
- Increase in operating and maintenance expenses due to business growth and increased operating assets.
- Increase in the provision for receivables for electricity consumers.
- Increase in net financing costs as a result of obtaining new financing to finance the company’s capital expenditure expansions and enhance its business growth.
- Decrease in other revenues due to the impact of a non-recurring item on the comparable period related to a settlement with a supplier.
The company attributed the increase in profits during the current quarter compared to the same quarter of the previous year to:
- Revenues increased for the current quarter compared to the same quarter of the previous year as a result of the following:
1) The increase in required revenue recognized during the current quarter is due to the growth in the regulated asset base of the electricity grid, along with the increase in demand for electricity and the continued growth of the subscriber base.
2) Increase in revenues from developing and managing projects related to the construction of stations and transmission lines for the company’s clients.
Despite the fact that:
- Increase in operating and maintenance expenses due to business growth and increased operating assets.
- Increase in the provision for receivables for electricity consumers.
- Other revenues decreased as a result of the comparable quarter being affected by a non-recurring item related to a settlement with a supplier.
The company attributed the increase in profits during the current quarter compared to the previous quarter to:
- Revenues increased for the current quarter compared to the previous quarter due to higher sales volumes due to seasonality of sales.
- Increase in operating revenues.
