Saudi Electricity Company Reports 18% Revenue Growth, Reaching 88.7 Billion in 2024, with Record-High Capital Investments of 60 Billion

Saudi Electricity Company (SEC) headquarters

The Saudi Electricity Company (SEC) today announced its financial results for 2024, reporting total operating revenues of 88.7 billion SAR, marking a 18% increase from 75.3 billion SAR in the previous year. This robust performance reflects sustained demand for electricity, increased power generation, expansion of regulated asset bases, and a higher weighted average cost of capital (WACC) return. Additionally, revenues from project development and management—including the construction of power plants and transmission lines for clients—contributed to the company’s overall growth.

SEC posted a net profit of 6.9 billion SAR for 2024, compared to 10.2 billion SAR in the previous year. The decline is primarily attributed to a one-time expense of 5.7 billion SAR, resulting from the final settlement of long-standing disputed amounts related to historical discrepancies in fuel quantities, pricing, handling costs, and electricity tariffs.Excluding this non-recurring expense, the company’s adjusted net profit stood at 12.1 billion SAR, up from 11.1 billion SAR in 2023, representing a 8.9% increase. This improvement was driven by key factors, including higher recognized revenue requirements in 2024, a 10% expansion in regulated asset bases to 231 billion SAR, increased power generation revenues, a growing customer base, enhanced operational efficiency, lower maintenance and operating costs, higher net other income, improved collections, reduced zakat provisions, and increased equity-accounted earnings from independent power plants.

Commenting on the company’s financial and operational performance, Eng. Khalid bin Salem Al-Ghamdi, Acting CEO of SEC, stated: "The year 2024 marks a new phase of accelerated growth, operational excellence, and strategic investment in the future. We have achieved record-breaking revenues and executed the largest capital investments in SEC’s history. As we advance our strategic initiatives, we remain committed to supporting the unprecedented transformation of the power sector in line with Saudi Vision 2030. This transformation presents exceptional growth opportunities, underpinned by a robust regulatory framework and SEC’s strong financial and strategic position.”

He added: “We are dedicated to enhancing energy security, supporting Saudi Arabia’s transition into a regional hub for clean energy, and delivering reliable, high-quality electricity services. Our focus remains on accelerating innovation, advancing digital transformation, and improving operational efficiency, all while ensuring an outstanding customer experience.”

SEC’s capital expenditures surged to an all-time high of 60 billion SAR in 2024, reflecting a 44% increase from the previous year. These investments were primarily directed toward power infrastructure expansion, smart grid enhancements, generation efficiency improvements, and service reliability upgrades. The company also continued its commitment to renewable energy integration, with 6.8 GW of renewable capacity connected to the grid by year-end. Additionally, SEC is developing new projects with a combined capacity of 27.3 GW and has initiated tenders for an additional 33.2 GW of renewable energy projects.

To enhance grid stability and efficiency, SEC commissioned Saudi Arabia’s first battery energy storage system (BESS) in Bisha, with a capacity of 500 MW, and advanced the development of five additional storage projects totaling 2,500 MW. The company also continued expanding regional grid interconnections, including the 3 GW Saudi-Egypt interconnection project, and feasibility studies for new interconnections with Italy, Greece, and India.

Customer satisfaction reached 82.3%, with significant improvements in service quality and reliability. The System Average Interruption Duration Index (SAIDI) improved by 17%, while the System Average Interruption Frequency Index (SAIFI) saw a 19% reduction. Additionally, the average service connection time for new customers decreased by 9%. SEC also advanced its digital infrastructure by automating all distribution substations in the Holy Sites and integrating the Makkah Distribution Control Center with the fiber optic network, ensuring uninterrupted service, particularly during the Hajj season.

SEC maintained a strong financial position, securing 57.2 billion SAR in financing throughout the year through various instruments, including sukuk issuances, local and international loans, and export credit agency-backed facilities to support its long-term growth strategy.

Reflecting its solid performance and strategic outlook, Moody’s upgraded SEC’s credit rating from A1 to Aa3 with a stable outlook, while Fitch raised its rating from A to A+, aligning SEC’s credit profile with Saudi Arabia’s sovereign rating. These upgrades further reinforce SEC’s position among the world’s leading power utilities.