Saudi Electricity Company profit falls by 33%

21 March 2025

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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

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Jennifer Aguinaldo
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