Seasonal factors weigh on Saudi Electricity in Q4: CEO

Saudi Electricity Co.’s (SEC) Q4 2017 net losses are attributed to seasonal factors, as the fourth quarter of every year usually witnesses lower power loads due to weather conditions, chief executive Ziad Al Shiha told Al-Arabiya TV on Wednesday, adding the utility always monitors the full-year results.

Revenue has not significantly increased, despite SEC’s success in cost cutting and efficiency improvement, along with connecting power to 500,000 customers.

The state-owned utility also invested in more than SAR 50 billion worth of assets to enhance network reliability, Al-Shiha said.

Saudi Arabia’s power consumption is likely to ease to 1.5 percent, down from previous forecasts between 6 percent and 10 percent, thanks to the new pricing policies. Consumption increased the most in 2015, but decreased in the last two years.

“The Kingdom’s policies were highly positive for the company and reflected positively on power consumption,” Al Shiha added.

SEC incurred net losses of SAR 5.5 billion in Q4 2017, Argaam reported.