Saudi Electricity says talks with govt entities over financial dues at advanced stage

Saudi Electricity Co. (SEC), the Kingdom’s utility provider, said talks with the government entities over financial dues are at an advanced stage.

The relevant financial impact cannot be determined at present, the company said in a bourse filing.

However, an agreement between the Kingdom's electric transmission monopoly and the government entities will likely have a key role in restructuring the company’s financial position, buoying solvency, bolstering credit rating, in addition to boosting the company’s services.

SEC indicated that a potential agreement is unlikely to impact its cash dividend payment, adding that relevant updates will be revealed in due course.

In January, SEC received a telegram from the Ministry of Finance notifying its approval for the first step of budget for the electricity sector in the fiscal year 2019, targeting an operating income of SAR 65.04 billion for the same period, Argaam reported.