Saudi Electricity Company Sees Revenue Rise, Net Profit Fall In 2023

The Saudi Electricity Company (SEC) has recently unveiled its financial outcomes for the year 2023, showcasing a notable increase in operating revenues which reached SAR75.3 billion, marking a 4.5% rise from the previous year's SAR72.0 billion. This growth is attributed to a combination of factors including a 5% surge in electricity demand, an expanding subscriber base, enhanced revenue from the transmission system, and significant contributions from Dawiyat Integrated Telecom Company, a fully owned subsidiary of SEC. The development of substations and transmission lines for customers also played a vital role in this revenue increase.

Despite the rise in operating revenues, SEC reported a decrease in net profit for 2023, which stood at SAR10.2 billion compared to SAR15.1 billion in the preceding year. The decline is primarily due to higher financing costs influenced by global interest rates, increased funding for capital projects, non-recurring expenses, and elevated operations and maintenance costs associated with business expansion and operating assets. The company also faced expenses related to substation and transmission projects. However, the impact of these challenges was somewhat offset by the higher operating revenues and a reduction in bad debt provision, thanks to improved collection activities over the year.

Eng. Khaled bin Hamad AlGnoon, CEO of SEC, commented on the financial results, expressing the company's commitment to being strategic partners in the progress and prosperity of the Kingdom's electricity sector. "We strive to invest in both the present and future to achieve sustainable development and meet the needs of investors, subscribers, and the communities we serve," he stated. AlGnoon also highlighted the achievements of 2023, including significant growth in power generation capacity, network expansion, and investments in new ventures such as fiber optics and electric vehicle infrastructure. These initiatives are aimed at enhancing service quality and reliability while supporting future growth opportunities.

AlGnoon acknowledged the crucial support from the government in overcoming challenges and improving services for subscribers. This partnership underscores SEC's ongoing efforts to adapt to increasing demands and technological advancements within the electricity sector.

The financial results of SEC for 2023 reflect both the achievements and challenges faced by the company in a dynamic economic environment. With strategic investments and government support, SEC continues to play a pivotal role in powering Saudi Arabia's progress towards sustainable development.

With inputs from SPA