Saudi Electricity Company profit falls by 33%

21 March 2025

Register for MEED’s 14-day trial access 

The net profit of state utility Saudi Electricity Company (SEC) has decreased by 33% to SR6.9bn ($1.8bn) in its fiscal year ending 31 December 2024.

The company attributed the decline to higher operating costs, the final settlement of dues worth SR5.7bn to Saudi Aramco, and higher finance costs.

SEC settled long-standing disputed amounts with the government related to historical discrepancies in fuel quantities, pricing, handling costs and electricity tariffs in February.

Excluding non-recurring items in comparative periods yielded a normalised net profit of SR12.1bn, however, up 8.9% over the 2023 figure.

The firm's revenues increased 17.7% from SR75.3bn in 2023 to SR88.7bn last year. 

Factors contributing to the rise in revenue include a change in regulatory weighted average cost of capital and a growing regulated asset base.

Increased demand for electric power, subscriber base growth and new revenue from development projects such as the construction of substations and transmission lines for its clients, also contributed to higher revenue in 2024.

Adjusted earnings before interest, taxes, depreciation and amortisation (ebitda) rose 11.2%, from SR33.9bn in 2023 to SR37.7bn in 2024, SEC said in its annual financial highlights. 

The firm's cash flows from operating activities for 2024 increased to SR8.3bn due to positive working capital movements.

Capital expenditures also surged 44% in 2024 to an all-time high of SR60bn, as the firm invested in power infrastructure expansion, smart grid enhancements, generation efficiency improvements and service reliability upgrades.

SEC said that several credit ratings agencies have upgraded its ratings in 2024. Moody’s raised its A1 with a stable outlook rating of SEC to Aa3 with a stable outlook. Fitch Ratings upgraded SEC’s rating from A with a stable outlook to A+ with a stable outlook.

As a result, the company’s credit ratings are now aligned with Saudi Arabia's sovereign ratings.

Financing growth

In 2024, SEC completed several financing deals, with a total value of SR57.2bn, to support ongoing investment in future growth. These comprised sukuk (Islamic bond) issuances, including taps, worth SR10.9bn, and US dollar syndication and term loans worth SR46.3bn.

SEC also redeemed $3.5bn-worth of sukuk, including $4.5bn in local sukuk and $800m in international sukuk in January 2024 and $1.5bn in international sukuk in April 2024.


MEED’s April 2025 report on Saudi Arabia includes:

> UPSTREAM: Saudi oil and gas spending to surpass 2024 level
> DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
> POWER: Saudi power sector enters busiest year
> WATER: Saudi water contracts set another annual record
> CONSTRUCTION: Reprioritisation underpins Saudi construction
> TRANSPORT: Riyadh pushes ahead with infrastructure development
> BANKING:
 Saudi banks work to keep pace with credit expansion

https://image.digitalinsightresearch.in/uploads/NewsArticle/13533410/main1020.jpg
Jennifer Aguinaldo
Related Articles
  • NWC tenders package 14 of sewage treatment programme

    28 April 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s National Water Company (NWC) has tendered a contract for the construction of 10 sewage treatment plants as part of the next phase of its long-term operations and maintenance (LTOM) sewage treatment programme.

    According to the original scope, the Eastern A Cluster (LTOM14) package will have a total treatment capacity of 184,440 cubic metres a day (cm/d) at an estimated cost of $180m.

    The bid submission deadline is 30 September.

    The tender follows recent contract awards for North Western A Cluster Sewage Treatment Plants Package 11 (LTOM11) and the Northern Cluster Sewage Treatment Plants Package 10 (LTOM10).

    MEED exclusively reported that a consortium comprising China’s Jiangsu United Water Technology, the UAE’s Prosus Energy and Saudi Arabia’s Armada Holding had been appointed as a contractor for each of these projects.

    Package 11 will have a combined capacity of about 440,000 cm/d at an estimated cost of about SR211m ($56.3m).

    Package 12 will have a combined treatment capacity of 337,800 cm/d at an estimated cost of about SR203m ($54.1m).

    In April, NWC also opened finanical bids for North Western B Cluster (LTOM12) of its sewage treatment programme.

    The contract covers the construction and upgrade of seven sewage treatment plants with a combined capacity of about 162,000 cm/d.

    MEED previously reported that the following companies had submitted proposals:

    • Alkhorayef Water & Power Technologies (Saudi Arabia)
    • Civil Works Company (Saudi Arabia)
    • Miahona (Saudi Arabia)
    • Beijing Enterprises Water Group – BEWG (Hong Kong)
    • Al-Yamama (Saudi Arabia)

    These bids are currently under evaluaton, with an award expected in the coming weeks, a source said.

    The tender for the North Western C Cluster (LTOM13) project had been put on hold, although it is understood that this is now likely to be the next package to be tendered.

    Under the original scope, this package covers the construction of 10 sewage treatment plants.

    In total, the LTOM programme comprises 19 packages split into two phases. This contract for LTOM10 was the first to be awarded under the second phase of NWC’s rehabilitation of sewage treatment plants programme.

    As MEED understands, there have been several discussions in recent months regarding changes in scope details and potential expansions. This involves potentially grouping some upcoming projects.

    NWC previously awarded $2.5bn-worth of contracts in the first phase. This comprises nine packages covering the treatment of 4.6 million cm/d of sewage water for the next 15 years. Phase two of the programme includes 10 packages covering 117 treatment plants.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16591851/main.jpg
    Mark Dowdall
  • Construction begins on Aman Dubai Hotel and Residences

    28 April 2026

    Dubai-based developer H&H Development and Switzerland’s Aman Group have broken ground on the Aman Dubai Hotel and Residences project in Dubai’s Jumeirah area.

    The project’s enabling works contract has been awarded to local firm Swissboring.

    Foundation works are expected to start this quarter.

    The developers said ground improvement works have now been completed. Another local firm, DBB Contracting, carried out the works.

    The project comprises a hotel, 78 branded residences and villas.

    Singapore-headquartered architectural firm Kerry Hill Architects is the project consultant.

    Dubai real estate developments continue to dominate the UAE’s construction market, with schemes worth more than $323bn either under execution or in planning.

    This aligns with a GlobalData forecast that the UAE construction sector will grow by 3% in real terms in 2026, supported by infrastructure, energy and utilities, and residential projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16591687/main.jpg
    Yasir Iqbal
  • Regional war deepens Kuwait oil sector’s tender crisis

    28 April 2026

    Commentary
    Wil Crisp
    Oil & gas reporter

    Contractors in Kuwait expect the regional conflict and disruption to shipping to worsen the country’s existing oil and gas tendering problems, causing long-term disruption in the sector.

    In the months prior to the US and Israel attacking Iran on 28 February, contract tenders worth an estimated $9.1bn were cancelled after bids came in above the projects’ allocated budgets.

    Contractors largely blamed the cancellations on long delays to tender processes after budgets had been set.

    The delays, which often extended for several years, meant inflation drove up the cost of materials and labour, making it almost impossible for contractors to submit bids within the original budgets.

    One industry source said: “The reason all of these contracts were cancelled was because the tender processes for large projects had started moving again after stalling for a long time.

    “Bids came in and unfortunately they were over budget. It was then expected that tender processes would restart and these projects would ultimately be awarded – but now the war means that Kuwait is facing a whole new wave of project delays and nobody knows when it is going to end.”

    War impact

    Many industry insiders believe delays caused by the war and the closure of the Strait of Hormuz will once again seriously disrupt projects, just as many stakeholders believed the country was about to see an uptick in project progress.

    One source said: “Bid bonds are going to have to be renewed and some bidders might just use that as an opportunity to drop out of the bidding process.

    “It’s also possible that work that has already been done, like feasibility studies, will no longer be relevant and will have to be repeated.”

    2025 rebound

    Last year, Kuwait recorded its highest total annual value for oil, gas and chemicals contract awards since 2017, according to data from regional project tracker MEED Projects.

    A total of 19 contract awards with a combined value of $1.9bn were awarded.

    This was more than four times the value of contract awards across the same sectors in 2024, when awards were worth just $436m.

    It was also above the $1.7bn peak recorded in 2021, but it remained far lower than the values seen in 2014-17, when several large-scale, multibillion-dollar projects were awarded in the country.

    The surge in the value of contract awards came after Kuwait’s emir indefinitely dissolved parliament and suspended some of the country’s constitutional articles in May 2024.

    Prior to the suspension of parliament, Kuwait suffered from very low levels of project awards for several years amid political gridlock and infighting between the cabinet and parliament.

    This meant important decisions about projects could not be made – a major obstacle to the progression of strategic oil projects.

    Forward outlook

    With several major oil and gas projects under development in late 2025 and early 2026, some expected 2026 to record a far higher volume of oil and gas contract awards than 2025.

    Projects expected to be tendered – and potentially awarded – this year included a $3.3bn onshore production facility due to be developed next to the Al-Zour refinery.

    This project has already been delayed and put on hold as a result of fallout from the US and Israel’s conflict with Iran.

    Had it been awarded, it would have been the biggest single oil and gas contract award in Kuwait in more than 10 years.

    Now, as a result of the conflict, many of the large tenders expected to take place this year are likely to be significantly delayed.

    One source said: “Right now, everyone in the oil and gas sector is waiting for some sort of sign of improving stability before they make a decision and there’s a lot of uncertainty.

    “The state-owned oil companies aren’t communicating with contractors like they normally do and the price of a lot of materials has increased dramatically.”

    Even if the standoff between the US and Iran over reopening the Strait of Hormuz is resolved in the near future, it is likely to take months or years before Kuwait’s oil and gas project market regains the momentum it had at the beginning of 2026.

    Given the lack of flexibility within Kuwait’s existing tendering system, delays can easily lead to tenders being cancelled, and the conflict’s inflationary impact will make it even harder for contractors to meet budgets set before the latest disruption.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16590560/main0421.png
    Wil Crisp
  • Partners launch feed-to-EPC contest for Duqm petchems project

    27 April 2026

     

    Register for MEED’s 14-day trial access 

    Omani state energy conglomerate OQ Group and Kuwait Petroleum International (KPI), the overseas subsidiary of Kuwait Petroleum Corporation, have initiated a feed-to-EPC competition among contractors to develop a major petrochemicals complex at Duqm.

    Under a feed-to-EPC model, the project operator selects contractors to carry out front-end engineering and design (feed). It then awards the engineering, procurement and construction (EPC) contract to the contractor with the most competitive feed proposal, while compensating the other contestants for their work.

    OQ8, the 50:50 joint venture of OQ and KPI, is understood to have issued the tender for the Duqm petrochemicals project’s feed-to-EPC competition in mid-March, with a deadline of 6 May for contractors to submit proposals, sources told MEED.

    Several local and international contractors based in Oman are believed to be participating in the competition, according to sources.

    OQ Group CEO Ashraf Bin Hamad Al-Maamari and KPI’s CEO Shafi Bin Taleb Al-Ajmi signed an agreement on 3 February, during the Kuwait Oil & Gas Show and Conference, to develop a major petrochemicals-producing complex in Oman’s Duqm. The parties did not disclose details at the time.

    ALSO READ: Duqm petrochemicals revival provides fillip to Gulf projects market

    The agreement represented a significant step forward in Oman and Kuwait’s long-held plans to jointly develop a petrochemicals complex next to the existing Duqm refinery, which will benefit from favourable feedstock access and strong cost competitiveness.

    The planned facility will also benefit from  in Al-Wusta governorate, along Oman’s Arabian Sea coastline.

    OQ8 had struggled to make meaningful progress on the Duqm petrochemicals project since the plan was conceived as early as 2018, for a variety of reasons.

    The original plan for the Duqm petrochemicals facility, estimated at $7bn, centred on a mixed-feed steam cracker with a capacity to produce 1.6 million tonnes a year (t/y) of ethylene. The project also included a polypropylene (PP) plant with a capacity of 280,000 t/y and a high-density polyethylene (HDPE) plant with a capacity of 480,000 t/y.

    The complex was also expected to include an aromatics plant, as well as storage facilities for naphtha and liquefied petroleum gas (LPG).

    The project’s prospects were temporarily boosted when Saudi Basic Industries Corporation (Sabic) expressed interest in investing by signing a non-binding memorandum of understanding with OQ in December 2021.

    Reuters reported in December that Sabic was withdrawing from the project, leaving OQ to look for other partners. The new agreement between OQ and KPI is understood to have followed the Saudi chemical giant’s departure.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16577785/main.jpg
    Indrajit Sen
  • Nakheel awards $953m Palm Jebel Ali villas deal

    27 April 2026

    Dubai-based real estate developer Nakheel, now part of Dubai Holding, has awarded two contracts worth AED3.5bn ($953m) to local firms for the construction of 544 villas at its Palm Jebel Ali project in Dubai.

    The first contract was awarded to Ginco General Contracting for the construction of 354 villas across fronds A to D.

    The second contract was awarded to United Engineering Construction Company (Unec) for the construction of 190 villas on fronds E and F.

    Construction is expected to begin in Q2 this year, with completion scheduled for 2028.

    Earlier phases

    In October 2024, Nakheel awarded three contracts worth AED5bn ($1.3bn) for the construction of 723 villas on fronds K to P. The contracts went to Ginco, Unec and the local Shapoorji Pallonji.

    Under these awards, Ginco is delivering 197 villas on fronds O and P, Shapoorji Pallonji is constructing 275 villas on fronds M and N, and Unec is building 251 villas on fronds K and L. Villa construction is expected to be completed by 2026.

    Infrastructure works

    This was followed by Nakheel awarding infrastructure contracts worth over AED750m ($204m) to local firm Dutco Construction for works on Palm Jebel Ali.

    The infrastructure work includes utility connections, excavation, backfilling, and the construction of roads and pavements across fronds A to G. It also covers 11-kilovolt power distribution and telecommunications-related utility works.

    Reclamation contract

    In August 2024, Nakheel awarded an AED810m ($220m) contract to complete the reclamation works for the project.

    The contract was awarded to Belgium’s Jan De Nul. Its scope includes dredging, land reclamation, beach profiling and sand placement to support the construction of villas across all fronds.

    Masterplan details

    Nakheel released details of the new masterplan for Palm Jebel Ali in June 2023. Twice the size of Palm Jumeirah, Palm Jebel Ali will have 110 kilometres of shoreline and extensive green spaces. The development will feature more than 80 hotels and resorts, along with a range of entertainment and leisure facilities.

    It includes seven connected islands that will cater to approximately 35,000 families. The development also emphasises sustainability, with 30% of public facilities expected to be powered by renewable energy.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16577782/main.jpg
    Yasir Iqbal