“Saudi Electricity” records a net profit of 897 million riyals in Q1, an increase of 87%

The net profit of the Saudi Electricity Company increased to 897 million riyals during the first quarter of 2024, compared to 480 million riyals in the same quarter of last year, by 86.8%. This came after today’s announcement of the estimated financial results for the period ending on March 31, 2024 (3 months).

Operating profit reached 2,019 million riyals in the first quarter, compared to 1,724 million riyals in the same quarter of the previous year, an increase of 17.1%.

The loss per share in the current period reached 0.31 riyals, compared to 0.34 riyals in the same period last year.

-The increase in revenues for the current quarter compared to the same quarter of the previous year is mainly due to: 1) The increase in required revenues recognized during the current quarter as a result of the increase in the regulatory rate of return weighted for the cost of capital (regulatory return), the growth of the regulated asset base, and the growth in demand for electrical energy. And the continued growth in the subscriber base, 2) new revenues related to the development of projects to establish stations and transmission lines for the benefit of the company’s customers, 3) an increase in Dawiyat Company’s revenues as a result of the growth in subscribers to the fiber optic service to homes.

The increase in net income for the current quarter compared to the same quarter of the previous year is mainly due to: 1) the increase in required revenue recognized during the current quarter, which is attributed to the increase in regulatory revenue and the growth of the regulated asset base, 2) new revenues related to the development of projects to establish stations and transmission lines. For the benefit of the company’s customers, 3) an increase in Dawiyat Company’s revenues as a result of the growth in subscribers to the fiber optic service for homes, 4) a decrease in financing costs, 5) an increase in the profits of the company’s share in investments recorded using the equity method, 6) a decrease in the provision for receivables to electricity consumers as a result of improved collection and seasonality of sales. .

The above was partially offset by: 1) higher operating and maintenance expenses as a result of business and asset growth and higher loads, 2) higher general and administrative expenses, 3) higher zakat provision.

-The decrease in revenues for the current quarter compared to the previous quarter is mainly due to the decrease in quantities sold due to the seasonality of sales. This was offset by the increase in required revenue recognized during the current quarter, which is attributed to the high regulatory return and the growth of the regulated asset base.

The increase in net income for the current quarter compared to the previous quarter is mainly due to the decrease in the company’s operating costs as a result of the decrease in quantities sold for the current quarter, in addition to the increase in required revenue recognized during the current quarter due to the higher regulatory rate of return and the growth of the regulated asset base compared to the previous quarter.