Saudi Electricity 9M 2022 profit after Mudaraba down 16% to SAR 7.664 bln; Q3 at SAR 4.443 bln

Saudi Electricity Co. (SEC) reported a net profit after Zakat and tax of SAR 7.664 billion in the first nine months of 2022 – after deducting the SAR 5.730 billion payment of Mudaraba coupon – a 16% decline compared to SAR 9.166 billion in the year-ago period.

The company’s net profit before deducting Mudarabah instrument distributions fell to SAR 13.395 billion in the nine-month period from SAR 14.897 billion in the same period last year.

The profit decline was attributed to higher power costs and financing charges, lower income from discontinued operations and higher provisions for accounts receivable.

This was partially offset by an increase in operating revenue mainly due to the growth in demand for electricity, the increase in balancing account amounts recognized during the current period and higher fiber optic rental revenue from Dawiyat Co.

In Q3 2022, the net profit after Zakat and tax saw an 18% drop to SAR 4.443 billion, from SAR 5.449 billion in the year-before period.

Sequentially, the company’s net profit grew 23.7% from SAR 3.592 billion in Q2 2022 due to  the seasonality of electricity sales.

Shareholders’ equity, no minority interest and excluding Mudaraba instrument distributions, grew to SAR 91.139 trillion as of Sept. 30, 2022, from SAR 88.340 trillion in the year-earlier period.

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