Electrical Industries current contracts reach all-time high: CEO

Managing Director, Tariq Mohamad AlTahini

Electrical Industries Co. currently has the largest number ever of contract signings, which covers supplying products to oil and gas projects and infrastructure projects, according to CEO Tariq bin Mohammad Al Tahini.

Al Tahini told Argaam that Electrical Industries is eager to implement contracts in accordance with the required supply schedule and is constantly competing to obtain new supply contracts, whether inside or outside the Kingdom.

He went on to say that part of the financial impact of the deal to export transformers to the European market will appear in Q4 2023 results, while the remaining part will appear in Q1 2024 financials.

Commenting on Q3 2023’s financials, Al Tahini attributed the profit growth to an increase in sales to SAR 393 million from SAR 245 million, due to increased demand for products with a higher profit margin.

Gross profit rose by 9% quarter-on-quarter (QoQ) in Q3 2023 because of higher sales and an improved profit margin for some products.

The CEO stated that the nominal value split was done pursuant to the company’s extraordinary general assembly’s approval, with the aim of attracting a new category of investors, without any effect on the company’s business and results.

According to data compiled by Argaam, Electrical Industries reported a net profit of SAR 141.6 million in the first nine months of 2023, up from SAR 54.3 million a year earlier. The third-quarter net profit more than doubled to SAR 56.4 million.