Saudi Energy Company’s net profit rose about 0.5% year-on-year in the third quarter to SAR 5.35 billion. The gain came from higher operating revenue, a lower provision for expected credit losses, and a higher share of profit from some of its investments.
In a statement on Tadawul on Tuesday, the company said growth was held back by three factors. Operating and maintenance expenses rose as the business grew, its operational asset base expanded and it worked to keep electricity supply reliable. Net financing costs also rose because the company took on new financing to fund its capital spending plans, and other income declined.
Quarterly revenue grew about 13% to SAR 35 billion. Part of the increase came from higher required revenue recognized during the quarter, driven by growth in the grid’s regulated asset base. Revenue from project development and management contracts also rose; these cover building power stations and transmission lines for the company’s customers. The customer base also kept growing.
Regulated Asset Base Grows on Investment
CEO Khalid Al-Ghamdi said: “Our regulated asset base has grown through the disciplined execution of our investment program. We have continued to meet growing demand for electricity while improving the readiness of our power plants, grid reliability and operational efficiency. This reflects our ability to grow while maintaining service quality and sustainable performance.”
He added: “With the capacity of our battery energy storage systems in operation reaching 22 gigawatt-hours, we have achieved our 2026 target, supporting the flexibility of the power system.”
In July, Saudi Energy signed an unsecured, Sharia-compliant Murabaha financing facility worth SAR 15.8 billion with seven Saudi banks. The facility runs for seven years and is for general corporate purposes.
In March, the company changed its name from Saudi Electricity Company to Saudi Energy Company and launched a new brand identity. Its activities include generating, transmitting and distributing electricity, repairing its equipment and building its projects. They also include electrical installations, architectural and engineering activities, and related technical consulting services.
Founded in 2000, Saudi Energy now has a market value of SAR 65 billion. The Public Investment Fund is its largest shareholder, with a 74.3% stake.
