High borrowing costs weigh on 2023 profit: MARAFIQ Chairman

Power and Water Utility Company for Jubail and Yanbu’s (MARAFIQ) Chairman Mohammad Al-Zuabi

Power and Water Utility Company for Jubail and Yanbu’s (MARAFIQ) Chairman Mohammad Al-Zuabi said the high borrowing costs on the company’s loans have mainly contributed to reducing net profits in 2023, compared to 2022.

He indicated that to mitigate such impact, the company made early partial repayments of existing loans, which in turn helped cut financing costs.

Al-Zuabi explained, in a company statement commenting on the results of the fourth quarter of 2023, that MARAFIQ’s efforts are ongoing in all sectors to meet the needs of industrial and individual customers in the main industrial cities affiliated with the Royal Commission for Jubail and Yanbu (RCJY) with high efficiency and reliability. These efforts contributed to maintaining revenues and associated costs on par with 2022 levels.

MARAFIQ enjoys a strong financial position that enabled it to announce dividends to shareholders, the executive pointed out.

The company is mainly located in the main industrial cities of RCJY in the Kingdom, as these cities are witnessing rapid advancements in development projects. In addition, MARAFIQ is entering into new investments in such cities, which will lead to increased demand for water and electricity services provided by the company in the future.

The Chairman noted that, after the board’s approval, MARAFIQ regurarly studies the projects and tenders that are put forward by government agencies and others in order to contribute to these projects, after confirming their economic feasibility.

The company's strategy aims to create new and diverse added-value opportunities that support attaining sustainable growth and optimal exploitation of its resources and assets to achieve the aspirations of shareholders and investors.

According to data available on Argaam, MARAFIQ reported a 38% fall in net profit to SAR 525.8 million in 2023, from SAR 845.7 million a year earlier. Further, Q4 net profit dropped to SAR 71.6 million.