Saudi Electricity’s Q2 2019 profit misses expectations: NCB Capital

Saudi Electricity Company’s (SEC) Q2 2019 profit of SAR 789 million missed analysts’ expectations of SAR 2 billion, NCB Capital said in a research note issued today.

“We believe the variance is due to lower than expected revenues and higher financial expense,” NCB Capital said.

“However, a 38 percent year-on-year (YoY) decline in capex is a key highlight which helps the company to reduce its debt level,” the note added.

The brokerage firm maintained a “Neutral” rating on SEC with a target price of SAR 19.5 per share.