Saudi Electricity 2022 profit after Mudaraba up 12% to SAR 7.5 bln; Q4 loss at SAR 164 mln

Saudi Electricity Co. (SEC) reported a net profit of SAR 7.5 billion in 2022 after deducting the SAR 7.7 billion payment of Mudaraba coupon, a 12% increase, compared to SAR 6.7 billion in the year-ago period.

The company’s net profit rose to SAR 15.51 billion in 2022 before deducting Mudarabah instrument distributions, compared to SAR 14.39 billion in 2021.

The profit increase was driven by higher operating revenue due to the growth in demand for electricity and an increase in the balancing account amounts from 2021.

In addition, the utility provider saw higher other income mainly due to recorded non-recurring items, and higher income from equity accounted investees on the change in classification of SEC’s interest in independent power producers (IPPs), from being accounted as joint operations to joint ventures.

This was partially offset by higher purchased power and fuel costs, mainly driven by growth in demand for electric power. In addition, the company reported an increase in provisions for receivables from electricity sales and others, as well as a marginal increase in net financing costs.

In Q4 2022, Saudi Electricity narrowed its losses to SAR 164 million from SAR 2.46 billion in the year-before period.

The utility provider turned to a net loss in Q4 2022 against a net profit of SAR 4.44 billion in Q3 2022.

Total shareholders’ equity, before Mudaraba instrument distributions, grew to SAR 89.13 billion as of Dec. 31, 2022, from SAR 83.70 billion in the year-earlier period.

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