Saudi Electricity deepens Q1 2022 net loss after Mudaraba to SAR 372 mln

Saudi Electricity Co. (SEC)  widened its net loss to SAR 372 million (SAR 0.09 loss per share) in Q1 2022 after deducting the SAR 1.889 billion payment of Mudaraba coupon, from SAR 200 million (SAR 0.05 loss per share) in the year-ago period.  

SEC reported a net profit of SAR 1.517 billion before deducting the payment of Mudaraba coupon in Q1 2022, down from SAR 1.689 billion in the year-earlier period.  

The company attributed the higher losses to a decline in the balancing account recognition to SAR 399 million in Q1 2022, compared to SAR 575 million in the year-earlier period.

SEC incurred higher costs from fuel, purchased power, operation and maintenance, due to higher electricity demand.

It also cited higher financing costs, which were offset by lower provisions for doubtful debts.

Compared to Q4 2021, SEC trimmed net losses by 84.7% from SAR 2.436 billion, thanks to lower costs of operation and maintenance, as well as fuel and purchased power due to the seasonality of electrical energy consumption.

Moreover, the previous quarter included non-recurring provisions and expenses. SEC also recorded a decline in finance costs.

Shareholders’ equity, after minority interest, stood at SAR 85.800 billion in Q1 2022, up from SAR 79.653 billion a year earlier. 

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