Saudi Electricity Company profits jump by 86.9% in the first quarter of 2024, reaching $239 million.
Profits jumped Saudi Electricity Company by 86.9% in the first quarter of 2024, to reach 897 million riyals ($239 million) compared to the previous year, thanks to higher revenues and growth in the asset base, in addition to the growth in revenues of its subsidiary “Dawiyat” Company, and lower financing costs.
She explained Saudi Electricity Company“ In a statement to the Saudi Financial Market, ”Trade“, revenues rose by 18.5% to 15.9 billion riyals in the first quarter of this year, thanks to the increase in required recognized revenues and the growth of the regulated asset base.
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Reasons for the increase in Saudi Electricity’s net profits
Other reasons for the increase in net profit include the growth in “Dawiyat” company’s revenues due to the increase in the number of subscribers to the fiber optic service for homes, the decrease in financing costs, the increase in the company’s share of profits recorded using the equity method, and the decrease in allocations for receivables to electricity consumers as a result of improved collections, and the seasonality of sales.
Challenges to increasing net profit
The company indicated that increasing net profit faces some challenges, such as higher operating and maintenance expenses, as a result of business growth, assets, increased loads, and an increase in general and administrative expenses, in addition to an increase in the zakat allocation.
Regarding the quarterly performance, the company witnessed a shift to profitability compared to losses that amounted to 91 million riyals in the previous quarter (the fourth quarter of 2023).
