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The Saudi Electricity Company (SEC) reported a strong financial performance for Q3 and the first nine months of 2024, highlighting continued growth. In Q3 2024, SEC saw a 19% year-on-year increase in revenues, reaching SAR 28.3 billion, and an 18% rise in net profit, totaling SAR 6.9 billion. Over the first nine months, revenues grew by 17%, reaching SAR 66.6 billion, with net profit increasing by 17% to SAR 12.1 billion compared to the same period last year.
This growth was driven by several key factors, including an increase in recognized revenue, higher regulated costs, and a rise in power production revenues. The company’s expanding subscriber base and new projects, such as substations and transmission lines, also contributed to the positive results. Despite increased revenue costs due to business expansion, SEC successfully managed operating costs through better resource management and operational efficiency.
The company also benefited from reduced financing charges and increased other income. SEC’s strong performance led to a positive shift in its credit outlook. In July 2024, Standard & Poor’s upgraded its outlook to positive, while Moody’s and Fitch maintained high ratings of A1 and A+, respectively, with positive and stable outlooks.
SEC Acting CEO Eng. Khalid AlGhamdi said in a statement, “The positive financial and operational performance during the third quarter and the nine-month period of 2024 reflects the growth of the company’s business and its operating asset base, alongside ongoing improvements in resource management effectiveness and operating expenses efficiency. This progress is further supported by continuous enhancement in key performance indicators related to the security, reliability, and diversity of energy supplies, as well as the reliability and efficiency of the electrical service.”
AlGhamdi also mentioned, Guided by our pioneering role as a vertically integrated electricity service provider in the Kingdom, and our position as the largest producer, transmitter, and distributor of electrical energy in the Middle East and North Africa, we play a pivotal role in fostering a diverse and sustainable energy mix over the grid.
He further added, ‘We are successfully implementing substantial investments to support this rapid, and unprecedented pace of development at both regional and global scales. Furthermore, we are meeting rising demand for the electricity service and higher load requirements driven by economic and demographic expansion in the kingdom while remaining steadfastly committed to increasing local content and localizing industry in alignment with the goals of Saudi Vision 2030.”
The Saudi Electricity Company (SEC) is focused on future growth, with a strong commitment to improving service efficiency, quality, and reliability. In the first nine months of 2024, SEC increased its capital investments by 35% year on year, reaching SAR 39.7 billion, including SAR 14.6 billion in Q3 alone.
At the recent Energy Localization Forum, SEC highlighted the signing of 46 localization agreements worth over SAR 54.7 billion. These agreements are designed to strengthen local supply chains and promote localization within the energy sector. SEC also achieved a major milestone in 2023 by surpassing its 2025 local content targets, reaching over 63.38% and earning the 2023 local content certificate from the Local Content and Government Procurement Authority.
The company has successfully secured financing deals totaling around SAR 41 billion in 2024 to support ongoing growth investments. In addition to these financial milestones, SEC is actively driving sustainability efforts. The company’s focus on operational efficiency and reducing environmental impact is aligned with the Kingdom’s carbon reduction goals.
In recognition of its commitment to sustainability, SEC’s Environmental, Social, and Governance (ESG) rating rose by 43% in August 2024, from 35 to 50, according to Standard & Poor’s “Corporate Sustainability Assessment.” SEC also received two prestigious corporate social responsibility awards in 2024, including the Gold Category Award and the Best Practices Award in the energy sector, acknowledging its efforts in health, environmental protection, and economic prosperity. |
