Saudi Electricity profit falls 32% on higher funding costs

Unsplash.com/Andrey Metelev

Saudi Electricity Company, 75 percent-owned by the sovereign Public Investment Fund, said its net profit fell 32 percent year on year in 2023.

The company said this was a result of rising financing costs and additional capital expenditure.

The utility provider reported a profit of SAR10 billion ($2.7 billion) in the previous 12 months, compared with SAR15 billion in 2022.

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In addition, the company recorded an increase in non-recurring expenses, maintenance costs and costs related to carrying out substation and transmission projects.

Revenue rose 4.5 percent year on year to SAR75 billion last year. This top line was driven by a five percent rise in electricity demand, higher subscriber base, revenue increase in the transmission segment and surge in income of its optic network service subsidiary, Dawiyat Integrated Telecom Company.

The development of new substations and transmission lines for the company’s customers also led to increase in revenues.

Saudi Electricity’s board has recommended a cash dividend of nearly SAR3 billion, or SAR 0.70 per share, for 2023, subject to shareholders’ approval.