Saudi Electricity posts net profit of SAR 3.026 bln in 2020

Saudi Electricity Co. (SEC) reported net profit after Zakat and tax of SAR 3.026 billion in 2020, compared to a net profit of SAR 1.388 billion in 2019.

The improvement was driven mainly by higher operating revenues, due to the implementation of the Minimum Service Operating Cost Model to regulate SEC’s revenue, in addition to a growth in subscriber base. The firm also noted the cancellation of the net deferred tax expense of SAR 412 million, in line with the approved amendment of the Income Tax Law in 2020.

This was partly offset by lower electricity sales, recording of SAR 808 million as a one-off settlement of fuel dues differences, and higher purchased power costs.

In Q4 2020, the firm swung to net profit after Zakat and tax of SAR 4.135 billion, compared to a loss of SAR 591.37 million in Q4 2019.