**Título:** *SEC Q3 Net Profit Drops 8.3%*

**Intro:**
Saudi Electricity Company (SEC) reported a 4.6% rise in Q3 2023 revenue to SAR23.8 billion, driven by summer demand and subscriber growth. However, net profit fell 8.3% to SAR5.8 billion due to higher finance costs and Zakat provisions. The company reaffirmed its SAR500 billion investment plan through 2030 to bolster infrastructure and Vision 2030 goals.

**Factbox (50 palabras):**
– **Q3 Revenue:** SAR23.8B (+4.6% YoY).
– **Q3 Net Profit:** SAR5.8B (-8.3% YoY).
– **9M Revenue:** SAR56.9B (+2.2% YoY); net profit SAR10.3B (-22.8%).
– **Equity:** SAR260.9B (0.7% annual growth).
– **CEO:** Khaled Al-Gnoon cites Vision 2030 alignment.
– **Investment:** SAR500B planned by 2030 for grid expansion.

**Saudi Electricity Company Reports Q3 2023 Results: Revenue Growth Amid Rising Costs and Strategic Investments**

**Riyadh, November 07, 2023** – Saudi Electricity Company (SEC), the Kingdom’s leading power provider, has announced its financial results for the third quarter and first nine months of 2023. The report highlights robust revenue growth driven by surging energy demand, tempered by rising operational costs and global financial pressures.

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### **Q3 2023 Financial Highlights**
1. **Operating Revenues**: SAR 23.8 billion, up 4.6% YoY.
– Driven by a 10% spike in electricity demand during peak summer months.
– Growth in subscriber base and higher utilization of the transmission system.
– Strong performance from Dawiyat (SEC’s fiber optic subsidiary), fueled by FTTH adoption.

2. **Gross Profit**: SAR 7.7 billion, a 3.3% YoY increase.
– Despite a 5.3% rise in operating costs (due to business expansion and maintenance programs), revenue growth outpaced expenses.

3. **Net Profit Decline**: SAR 5.8 billion, down 8.3% YoY.
– Impacted by higher finance costs from global interest rate hikes and capital project financing.
– Quarterly Zakat provisions further reduced net earnings.
– EPS fell to SAR 0.94 (from SAR 1.07 in Q3 2022).

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### **Nine-Month 2023 Performance Overview**
– **Operating Revenues**: SAR 56.9 billion, up 2.2% YoY.
– **Gross Profit**: SAR 15.6 billion, down 6.7% YoY.
– **Net Profit**: SAR 10.3 billion, a 22.8% YoY decline.
– Higher operations/maintenance costs, asset growth, and new projects drove profit reductions.
– Total equity reached SAR 260.9 billion, reflecting 0.7% annual growth.

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### **CEO Commentary: Balancing Growth and Vision 2030 Ambitions**
Eng. Khaled bin Hamad Al-Gnoon, CEO of SEC, underscored the company’s success in managing record electricity demand, attributing it to Saudi Arabia’s economic momentum under Vision 2030. He stated:
> *“Our ability to meet surging demand reflects the Kingdom’s thriving economy and the success of Vision 2030 programs. We remain committed to investing in infrastructure that ensures reliable, sustainable energy for all.”*

**Strategic Investments**:
– SEC plans to invest **SAR 500 billion by 2030** to modernize grid infrastructure and support Vision 2030 goals.
– Key projects include:
– Expansion of the **Rabigh Power Plant**.
– Investments in **Electric Vehicle (EV) Infrastructure**.
– Development of new power generation facilities.

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### **Financial Resilience and Funding Initiatives**
To fuel its growth strategy, SEC has secured:
– **$2 billion dual-tranche Sukuk** (April 2023) under its international Sukuk program.
– **$3 billion syndicated loan** to bolster liquidity and fund capital projects.

These measures aim to strengthen SEC’s financial position while supporting long-term revenue growth.

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### **Challenges and Outlook**
– **Rising Costs**: Global interest rates and operational expenses remain headwinds.
– **Demand Surge**: Continued subscriber growth and economic diversification under Vision 2030 are expected to drive energy needs.
– **Sustainability Focus**: SEC is prioritizing grid modernization and renewable energy integration to align with Saudi Green Initiative targets.

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### **Conclusion**
Saudi Electricity Company’s Q3 results reflect its pivotal role in powering the Kingdom’s economic transformation. While rising costs have impacted short-term profitability, SEC’s aggressive investment strategy and government-backed Vision 2030 initiatives position it as a cornerstone of Saudi Arabia’s sustainable energy future. Stakeholders can expect continued focus on innovation, efficiency, and expansion to meet the nation’s evolving energy demands.

**Tags**: #SaudiElectricity #SEC #Vision2030 #EnergySector #FinancialResults #EconomicGrowth #RenewableEnergy #SaudiArabia

**Categories**: Finance, Energy, Saudi Arabia, Corporate News

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**FAQs: Saudi Electricity Company (SEC) Q3 & 9M 2023 Financial Results**

1. **Why did SEC’s Q3 2023 operating revenues rise by 4.6% year-on-year?**
Increased electricity demand (10% surge in summer) and subscriber base growth, alongside higher transmission system revenue and strong performance from Dawiyat’s FTTH fiber optic services, drove the SAR23.8 billion revenue.

2. **What caused SEC’s Q3 net profit to decline by 8.3% despite revenue growth?**
Higher global interest rates raised finance costs, while capital project funding and quarterly Zakat provisions further reduced net profit to SAR5.8 billion.

3. **How did Dawiyat Integrated Telecommunications impact SEC’s Q3 results?**
Dawiyat, an SEC subsidiary, boosted revenue through increased adoption of FTTH fiber optic connections, supporting transmission system revenue growth.

4. **Why did operating costs increase by 5.3% in Q3 2023?**
Costs rose due to expanded infrastructure, summer demand surges, and enhanced maintenance programs, though revenue growth still outpaced these expenses.

5. **What explains the 22.8% net profit decline for the first nine months of 2023?**
Higher operations/maintenance costs, asset growth, global interest rates, and project financing reduced profits to SAR10.3 billion despite a 2.2% revenue increase.

6. **How did Vision 2030 influence SEC’s performance, per CEO Al-Gnoon?**
Vision 2030’s economic growth initiatives drove higher energy demand, reflecting the Kingdom’s economic vitality and alignment with SEC’s expansion goals.

7. **What is SEC’s SAR500 billion investment strategy by 2030?**
Funds will enhance electrical infrastructure, support EV charging networks, expand power plants (e.g., Rabigh), and improve service quality to meet Vision 2030 objectives.

8. **How did Zakat provisions affect SEC’s Q3 profitability?**
Quarterly Zakat accruals, combined with rising finance costs, contributed to the SAR5.8 billion net profit, down from SAR6.3 billion in Q3 2022.

9. **What financing measures has SEC taken to support its growth?**
SEC secured $2 billion via dual-tranche Sukuk (April 2023) and a $3 billion syndicated facility to fund projects and strengthen its financial position.

10. **Why did earnings per share drop to SAR0.94 in Q3 2023?**
Lower net profit due to finance costs and Zakat reduced EPS from SAR1.07 (Q3 2022) to SAR0.94, despite revenue growth.

11. **How does SEC plan to address rising operational costs?**
Revenue growth from higher demand and strategic investments (e.g., transmission systems, Dawiyat) aims to offset costs, alongside efficiency improvements.

12. **What role does SEC play in Saudi Arabia’s EV infrastructure?**
SEC is investing in the Electric Vehicle Infrastructure Company to expand charging networks, aligning with Vision 2030’s sustainability goals.

13. **What is SEC’s total equity as of Q3 2023?**
Total equity reached SAR260.9 billion, growing 0.7% annually, reflecting steady financial stability amid expansion efforts.

14. **How did subscriber growth impact SEC’s transmission revenue?**
Higher subscriber usage and load on the grid increased transmission revenue, supported by Dawiyat’s fiber optic services.

15. **What government support has SEC received for its projects?**
Government backing and Vision 2030 guidance enabled SEC to fund infrastructure upgrades, enhance service quality, and pursue large-scale investments like the Rabigh plant.

**CTA (Llamado a la Acción):**
¿Quieres seguir de cerca el crecimiento estratégico de Saudi Electricity Company y sus proyectos innovadores alineados con Vision 2030? **Visita su sitio web** para conocer más sobre sus iniciativas de inversión, sus avances en infraestructura energética y oportunidades de colaboración. **Suscríbete a sus actualizaciones** y sé parte de la transformación que está electrificando el futuro de Arabia Saudita.

**Conclusión:**
Los resultados financieros de Saudi Electricity Company para el tercer trimestre de 2023 reflejan un escenario de crecimiento sólido, impulsado por la demanda estacional y la expansión estratégica de sus operaciones. Aunque los costos financieros y operativos han impactado temporalmente la rentabilidad neta, la compañía mantiene una posición líder en el sector energético saudí, respaldada por inversiones ambiciosas como la infraestructura para vehículos eléctricos y la modernización de plantas de energía. Con un enfoque claro en Vision 2030, SEC no solo está satisfaciendo la creciente demanda energética del Reino, sino que también está sentando las bases para un futuro sostenible y tecnológicamente avanzado.

**Agradecimiento:**
Saudi Electricity Company extiende su gratitud al Gobierno de Arabia Saudita, al Liderazgo Visionario del Reino y a todas las partes interesadas por su apoyo continuo. Su compromiso ha sido fundamental para impulsar proyectos transformadores y mejorar la calidad de los servicios eléctricos para millones de usuarios. Un reconocimiento especial también a los empleados, socios y suscriptores, cuyo papel es esencial en la construcción de un sistema energético resiliente y orientado al futuro.

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Este contenido equilibra logros y desafíos, destacando la visión estratégica de SEC mientras invita al público a participar en su trayectoria de crecimiento.