Riyadh, March 06, 2024, Saudi Electricity Company (SEC) has released its financial results for the year 2023, revealing operating revenues of SAR75.3 billion. This marks a notable 4.5% increase from the previous year's SAR72.0 billion. The company attributes this growth to several factors, including a 5% surge in electricity demand during 2023, sustained expansion of the subscriber base, increased revenue from the transmission system, and the revenue growth of Dawiyat Integrated Telecom Company, which is fully owned by SEC. Additionally, revenue was boosted by the development of substations and transmission lines for company customers.
Despite the positive revenue trajectory, the net profit for 2023 stood at SAR10.2 billion, reflecting a decrease from SAR15.1 billion in the preceding year. SEC cites various factors for this decline, including higher financing costs linked to global interest rates and additional capital project funding. Non-recurring expenses, increased operations, and maintenance costs due to business and asset growth, and expenses related to substation and transmission projects also contributed to the reduction in net profit.
The decline in net profit was partially offset by higher operating revenues and a reduction in bad debt provision due to improved collection activities in 2023 compared to the previous year.
Eng. Khaled bin Hamad AlGnoon, CEO of SEC, commented on the results, stating, "We strive to be strategic partners in achieving progress and prosperity in the Kingdom's electricity sector. We are investing in the present and future to achieve sustainable development and meet the needs of investors, subscribers, and the communities we serve." AlGnoon highlighted the company's achievements in 2023, including significant growth in power generation capacity, network expansion, and investments in new ventures such as fiber optics and electric vehicle infrastructure. These initiatives, he emphasized, aim to enhance service quality, reliability, and support future growth opportunities. AlGnoon also acknowledged the crucial role of the government and its ongoing support in overcoming challenges and improving services for subscribers.
