Saudi Electricity Company Achieves 23% Revenue Growth In Q1 2025 Amid Strategic Investments

The Saudi Electricity Company (SEC) has reported a notable rise in its financial performance for the first quarter of 2025. Operating revenues surged by 23%, reaching SAR19.5 billion, up from SAR15.9 billion in the same period last year. This growth is attributed to an expanded regulated asset base, increased electricity generation revenues due to higher demand, and more revenue from projects related to substations and transmission lines.

Gross profit saw a significant increase of 34.3%, climbing to SAR2.9 billion from SAR2.1 billion in the previous year's first quarter. Operating profit also rose by 16.2% to SAR2.3 billion, compared to SAR2.0 billion last year. Despite facing higher financing costs due to investment and expansion plans, net profit grew by 7.9% to reach SAR968 million, up from SAR897 million.

SEC's CEO Khalid Al-Ghamdi stated, "Our first-quarter performance marks a robust start to the fiscal year 2025, reflecting strong growth in operating revenues driven by business expansions, the accelerated growth of our regulated asset base, and continued improvements in operational efficiency." He emphasized that these results validate their strategy of implementing large-scale strategic investment projects efficiently.

During this period, SEC made strides in enhancing electric service reliability and customer experience, achieving an 87% customer satisfaction rate. The company advanced its digital infrastructure by automating distribution stations and linking them to control centers via fiber optics, resulting in a 37.5% automation rate for distribution stations.

SEC is actively progressing with renewable energy integration into its grid. By the end of Q1 2025, connected capacity reached approximately 6.7 GW, with plans for an additional 34.4 GW by 2027. This includes developing battery storage capacities up to 22 GWh, highlighted by a new 500 MW battery project inaugurated in Bisha during this quarter.

The company is also expanding its power generation capabilities with projects totaling 23.4 GW under development. These include expanding existing plants and forming new strategic partnerships for independent power plants (IPP). Notably, SEC began expanding the Qurayyah IPP with a capacity of 3,010 MW in the Eastern Region.

Sukuk Issuance and Financial Strength

To support its growth plans financially, SEC issued dual-tranche unsecured Sukuk worth $2.75 billion under its international Sukuk program during Q1. This included a $1.5 billion tranche with a five-year maturity and a $1.25 billion green Sukuk tranche with a ten-year maturity dedicated to sustainable projects.

The pricing of these tranches at spreads of 85 and 95 basis points over the U.S Treasury yield marked a historic achievement as the tightest spread ever achieved by a Saudi company, reflecting global investor confidence in SEC's strategy and sustainability efforts.

Credit Rating Upgrade

The company's financial profile was further bolstered when Standard & Poor's upgraded its credit rating to A+ with a stable outlook in March 2025, aligning it with Saudi Arabia's sovereign rating. SEC holds ratings of Aa3 from Moody's and A+ from Fitch Ratings, underscoring its strong financial position and strategic importance within the Kingdom's energy sector.

Regionally, SEC continued work on the Saudi-Egypt electricity interconnection project with a capacity of 3 GW while conducting preliminary studies for potential international connections with Italy, Greece, and India.

The total installed capacity at SEC's generation plants reached approximately 56 GW during Q1 as part of ongoing efforts to expand power generation capabilities through various projects including wholly owned plants and IPPs where SEC holds shares.

SEC is converting fuel used in some plants from liquid to natural gas aiming at improving thermal efficiency while reducing carbon emissions as part of its commitment towards sustainable energy practices.

With inputs from SPA