Saudi Electricity Company (SEC) has released its financial results for the third quarter and the first nine months of 2023. The company reported operating revenues of SAR 23.8 billion for the third quarter, reflecting a 4.6% increase compared to the same quarter the previous year. This growth is attributed to increased demand for electrical energy during the summer season, with a 10% rise, and ongoing subscriber base growth. Despite a 5.3% year-on-year increase in operating costs, the company's strong revenue growth resulted in a 3.3% increase in gross profit for the quarter, reaching SAR 7.7 billion.
Operating profit for the third quarter remained stable at SAR 7.2 billion, and net profit amounted to SAR 5.8 billion, representing an 8.3% decrease compared to the same quarter in the previous year. The decline in net profit is attributed to increased finance costs due to global interest rate hikes and additional funding for capital projects, as well as the booking of Zakat provisions on a quarterly basis during the current year.
For the first nine months of 2023, SEC reported operating revenues of SAR 56.9 billion, marking a 2.2% increase compared to the same period the previous year. Gross profit for this period reached SAR 15.6 billion, representing a 6.7% decrease year-on-year. Operating profit for the first nine months was SAR 14.7 billion, down 3.4% year-on-year. Net profit for the nine months amounted to SAR 10.3 billion, down 22.8% year-on-year.
SEC's CEO, Engineer Khaled bin Hamad Al-Gnoon, highlighted the company's success in meeting the substantial growth in electricity demand during the summer season, surpassing a 10% growth rate. He noted that this sustained demand reflects the economic vitality within the Kingdom and the successful implementation of Vision 2030 programs. Al-Gnoon emphasized SEC's ambitious investment strategy, aiming to inject a total investment of SAR 500 billion by 2030 to provide exceptional electrical services and play a pivotal role in Vision 2030 objectives for the electricity sector. The CEO also highlighted recent investments, including a stake in the Electric Vehicle Infrastructure Company and securing power plant projects.
Despite challenges and increased costs, SEC's financial results underscore its commitment to addressing growing energy demand, expanding its infrastructure, and contributing to the Kingdom's economic development.
