Saudi Electricity losses widen to SAR 3.310 bln

Saudi Electricity Co. (SEC), the Kingdom's utility provider, widened net losses after Zakat and tax to SAR 3.310 billion in H1 2020, from SAR 700 million in the same period last year.

SEC was hit by non-recurring items, including a settlement of fuel dues differences of SAR 837 million to Saudi Aramco, a change in the sales mix to higher residential and lower commercial, governmental and industrial consumption during the COVID-19 pandemic lockdown period. Accordingly, government fees increased by SAR 477 million.

The company also incurred higher power purchase costs and higher finance charges.

In Q2 2020, the utility provider turned to a net loss after Zakat and tax of SAR 869 million against a net profit of SAR 789 million, due to non-recurring items, including a settlement of fuel dues differences of SAR 837 million to Saudi Aramco, a change in the sales mix to higher residential and lower commercial, governmental and industrial consumption during the COVID-19 pandemic lockdown period.

Accordingly, government fees increased by SAR 503 million.

The company trimmed net losses by 64% quarter-on-quarter, backed by sales seasonality, despite recording of a settlement expense of fuel dues differences to Saudi Aramco, a change in the sales mix, and higher finance charges.