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Saudi Electricity’s net income fell 32.3% y-o-y to SAR 10.2 bn in 2023, while revenues rose 4.5% y-o-y to SAR 75.3 bn over the same period, it said in an earnings release (pdf) yesterday. On a quarterly basis, the company extended its losses in 4Q 2023 to SAR 2 bn, while its revenues were up 12.4% y-o-yto SAR 18.4 bn, according to data seen by Argaam. The Public Investment Fund is a majority shareholder in SEC with a 74.3% stake.
Driving the plunge: SEC attributed its bottom line decline in 2023 to rising financing costs in the face of rising global interest rates and higher operating and maintenance costs among others. Such factors were offset by increases in operational revenue and lower net provisions for outstanding invoice. The increase in topline came on the back of an uptick in demand and subscriber base and higher revenues from subsidiary Dawiyat.
Some highlights during the year: SEC said it has obtained approval to expand the Rabigh plant, which will contribute an additional 1.2 GW of capacity. A consortium led by SEC also signed power purchase agreements (PPAs) for Taiba 1 and Qassim 1 power stations at investments worth SAR 14.6 bn. Both plants have a combined capacity of 3.6 GW. It also grabbed a 25% stake in the Electric Vehicle Infrastructure Company in a transaction valued at SAR 254 mn. The EV-focused company is a joint stock company that is wholly owned by the PIF.
SEC’s BoD has proposed a dividend payout of SAR 2.9 bn at SAR 0.7 per share for 2023, it said in a separate disclosure to Tadawul. The distribution date is yet to be announced.
