SEC boosted operating efficiency by 40% in Q3, says CEO

Saudi Electricity Co. increased operating efficiency by 40 percent in Q3 2017, a target which was scheduled for 2020, Al Arabiya TV reported, citing chief executive Ziyad Al-Shiha.

The improvement in operating efficiency – backed by SAR 50 billion worth of new projects – cut fuel consumption by around eight million barrels in 2017, and slashed diesel usage by 25 million barrels.

Commenting on the potential sale of a stake in the utility provider to the SoftBank Vision Fund, Al-Shiha said the decision hinges on the Kingdom’s Public Investment Fund (PIF), which owns a significant holding in SEC.

SEC reported a net profit of SAR 12.4 billion in the first nine months of 2017, a 95 percent year-on-year (YoY) surge, mainly attributed to a non-recurring write-off of municipality fees under a royal decree issued earlier this year.

Net profit for the third quarter rose 6.8 percent YoY to around SAR 5.3 billion on lower cost of revenues, due to improved operating efficiency.

The utility provider offered services to 500,000 subscribers over the last 12 months, raising the number of its clients to nine million in the Kingdom.